Meta's Reality Labs Reports Record $4.65 Billion Quarterly Loss

Despite surpassing $1 billion in revenue for the first time, Meta's VR/AR division faces significant financial challenges.

Meta's Reality Labs division, responsible for VR/AR and the metaverse, reported a record $4.65 billion quarterly loss despite surpassing $1 billion in revenue for the first time.
The division's total losses since the end of 2020 have now exceeded $42 billion, with a significant portion of the recent losses attributed to the launch of Meta Quest 3 and Ray-Ban Meta smart glasses.
Sales of VR and AR headsets and glasses dropped almost 40% last year, raising questions about the market's response to high-end devices like Apple's Vision Pro headset.
Meta CEO Mark Zuckerberg remains committed to VR, AR, and mixed reality as the future of social media and computing, emphasizing the development of artificial general intelligence (AGI) to enhance these technologies.
Despite the financial setbacks, Meta's Quest 3 headset had a strong Q4, outselling competitors and driving the division's highest-ever quarterly revenue.