Last October, CEO Mark Zuckerberg announced that Facebook was rebranding as Meta and setting its sights on the metaverse, which he dubbed the “successor to the mobile internet.”
But 12 months and more than $15 billion later, the company has little to show for it.
Here are a few reasons why Meta’s plans for the metaverse have stalled:
Bad timing: Meta had a lot of momentum going into 2022, but a rocky economy has forced the company to hit pause. “Had all of these moves been done approximately a year earlier, then you wouldn’t have run into these inflationary concerns and uncertainty that are causing them to pull back now,” said our director of Briefings Jeremy Goldman.
Isn’t it ironic? One of the (possibly) unintended consequences of Facebook’s rebrand to Meta is the amount of eyes the company now has on its metaverse intentions.
The price isn’t right: Earlier this month, Zuckerberg debuted the Meta Quest Pro virtual reality (VR) headset, the company’s latest piece of hardware that will cost $1,500.
Mixed reality: Sevilla suggested that consumers may not be sold on VR just yet, though mixed reality and augmented reality are gaining popularity.
A hypothetical: Would Meta still be pursuing the metaverse if it had the ability to acquire other social media platforms without regulatory scrutiny? Goldman and Sevilla say no.
From our mouths to Zuck’s ears: Sevilla recommends that Meta focuses on short-term goals and keeping its existing user base engaged. “For existing headset users, make the experience better for them. Throw in more applications that skew toward productivity, but make it fun, make it about connecting.”
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