Facebook continues to increase investment in the VR/AR sector as the advertising business slows

With major advertising facing “significant uncertainty”, Facebook stated in its third-quarter financial report that it will split its Facebook Reality Labs into an independent reporting department from the fourth quarter, and announce virtual reality (VR) and augmented reality (AR) The department’s performance highlights the company’s ambition to build a meta universe.

Facebook announced its third quarter financial results on October 25. Sales were 29 billion U.S. dollars, and diluted earnings per share were 3.22 U.S. dollars. Investors expect sales of 29.58 billion U.S. dollars and earnings per share of 3.19 U.S. dollars. Chief Operating Officer Sandberg pointed out that Apple’s new privacy changes have put pressure on its digital business this quarter. As a result, the social media company reported quarterly revenue below market expectations.

Sandberg also said that Facebook advertisers are also affected by global supply chain disruptions and labor shortages, which have harmed the advertising needs of a range of industries and regions.

As the advertising business slowed down, Facebook also reported in an investor digest that it would “separate Facebook Reality Labs (FRL) as a separate unit.” Facebook Chief Financial Officer David Wehner (David Wehner) said that starting in the fourth quarter of 2021, it will separate FRL as an independent reporting department from Facebook’s application series. The company expects its investment in the hardware division of Facebook Reality Labs will reduce overall operating profit in 2021 by approximately $10 billion.

Facebook CEO Mark Zuckerberg (Mark Zuckerberg) said that in the next few years, Facebook will not be seen as a social media company, but a company focused on the meta universe. Note: Metaverse refers to a virtual world that is parallel to the real world supported by AR, VR and other technologies. To put it simply, the meta universe is to project all people and things in the real world to the cloud world through digital means. In this brand new world, you can do anything you can do in the real world, or you can do things that you can’t do in the real world.

VR, AR and other technologies play a fundamental role in the construction of the meta-universe. Facebook, which is committed to the construction of Metaverse, has made a lot of investment in VR and AR, including the acquisition of Oculus and other companies. This year, it also established a product team to study Metaverse. Earlier this month, it also stated that it plans to hire 10,000 employees in Europe over the next five years to carry out the program.

Zuckerberg pointed out: “In the near future, this will not be a profitable investment for us. But we basically believe that Metaverse will become the heir to the mobile Internet.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/facebook-continues-to-increase-investment-in-the-vr-ar-sector-as-the-advertising-business-slows/
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