Meta's Metaverse Gamble: $60B in Losses and Counting
2025-05-02
Meta's Reality Labs reported a $4.2 billion operating loss in Q1 2025, bringing cumulative losses since 2020 to over $60 billion. Reality Labs, responsible for Meta's Quest VR headsets and Ray-Ban smart glasses, is central to Mark Zuckerberg's metaverse vision. Wall Street's skepticism regarding Meta's massive metaverse investment is compounded by new tariffs, potentially driving up device prices. Recent layoffs at Oculus Studios, the unit creating VR/AR content for Quest, further highlight the challenges facing Zuckerberg's ambitious project.