Why is Facebook's Meta such a fiasco?

The metaverse is presented as a virtual universe where users can interact with each other and with immersive digital environments. Mark Zuckerberg promised a revolution in uses comparable to the arrival of the smartphone in our lives and decided in 2021 to rename the company Facebook by "Meta", which will then become the parent company of several other related companies.

Facebook's metaverse project has raised high expectations and generated many different reactions from users and investors. Some see it as an opportunity for Facebook to create a new image in web 3 while others see it as a financial downfall for the company.

Meta's quarterly results showed disappointing growth, and the Horizon Worlds platform, which was supposed to be the spearhead of the metaverse, is struggling to attract users. Small explanations on the disappointments linked around Meta.

Meta's promises

Project Meta is more of an overhaul of Facebook as the parent company of a collection of virtual (VR) and augmented (AR) reality-focused businesses, rather than a single project in itself. The main objective was then to reaffirm the company's vision as a major player in the future of technology, with an emphasis on virtual and augmented reality as new social interaction and computing platforms.

So, by renaming the company to Meta, Facebook sought to position itself as a broader and more diverse technology company. It wants to move from a platform primarily focused on social media to a company that focuses on virtual and augmented reality technologies.

In summary, Facebook's Project Meta aims to reinvent the company as a leader in virtual reality technologies and increased, capitalizing on growth opportunities in this emerging field and diversifying its activities beyond traditional social networks.

Meta not only wants to be part of yesterday's technological companies but also wants to mark the current digital landscape.

This is a major strategic pivot for the company as it seeks to shape the future of technology and social interaction.

Horizon Worlds Adoption Challenges

The Horizon Worlds platform, downloadable from Meta Quest, was to be the first step towards the Meta metaverse. However, the platform is struggling to attract users. Internal statistics reveal that less than 200 users are active monthly on the platform. This is a figure well below the expectations of the company which hoped to have 000, according to the newspaper Digital.

Additionally, most worlds created on Horizon Worlds fail to attract significant numbers of visitors. Only 9% of creator-built worlds attract at least 50 visitors, raising questions about the appeal and interest of the platform.

In addition, the graphic and visual overviews of the metaverse offered by Meta are considered disappointing by Internet users. The virtual avatars presented in the videos more closely resemble those of video games from the early 2000s. Recent video games and contemporary animated films present much more realistic visuals than those presented by Meta. Are there many memes circulating on social networks that make fun of the visuals of the metaverse? Additionally, the features and interactions offered seem familiar and not very innovative.

meta horizon a flop — source: https://www.numerama.com/tech/1083206-quest-ce-que-le-metaverse.html

Limited access and difficult user experience

Metaverse adoption also poses technological challenges. To fully enjoy this immersive experience, users need expensive virtual reality headsets and a powerful internet connection. So, even though the Meta application is free, it cannot be used without purchasing a Meta Quest headset which costs 349 euros.

These technological barriers limit access to the metaverse to the most privileged people.

In addition, the technical performance of the metaverse is still far from perfect. Latency, bugs, and rendering quality issues can limit user immersion and make the experience less engaging.

Disappointing financial results for Meta

In 2023, Facebook's parent company announced positive results for the group with an increase in "content monetization, particularly "reels" with a 30% increase on Instagram and 40% on Facebook, compared to the fourth quarter of 2022". This increase is explained, according to BFM Bourse, by the use of AI tools.

This is certainly reassuring for shareholders and investors, but it does not mask the major losses linked to the specific development of the metaverse. With a loss of $4 billion recorded for its Reality Labs division, responsible for developing the metaverse and virtual reality technologies. Despite growth picking up in other areas, this loss cast a shadow over the company's results. Naturally, shareholders do not welcome the spending on the Meta project, not seeing the economic benefits.

Investors fear that the meta project will become obsolete, recalling the bitter failure of the attempt to create the cryptocurrency Pound which no one hears about today...

(See the article by Usbeck&Rica: What happened to Libra, Facebook's cryptocurrency ?)

According to the newspaper LeBoursier, Reality Labs "lost $3,7 billion in the second quarter. It has even lost more than $40 billion since 2021, including $13,7 billion last year."

Mark Zuckerberg, CEO of Meta, had to defend his project when presenting the results. He reaffirmed his interest in developing the metaverse, saying the project was long-term and the company remained committed to its completion.

Layoffs at Meta

Finally, Meta announced the elimination of 11 jobs, or 000% of its staff. The move sparked criticism and concern among company employees. Some of them are not convinced by Meta and believe that the metaverse is leading to the destruction of the company.

Mark Zuckerberg apologized to staff, admitting he was wrong in his post-Covid pandemic growth forecasts. He acknowledges responsibility for this error and announced support measures for the dismissed employees.

Final word

Facebook's metaverse project, renamed Meta, faces many challenges. Disappointing quarterly results, Horizon Worlds adoption difficulties and recent layoffs show that the path to achieving the metaverse is strewn with pitfalls. Even if some fear that the metaverse is a fad and an opportunity that cannot be seized by Facebook, Marc Zuckerberg maintains his position.

However, it is important to note that the concept of the metaverse continues to attract attention and still arouses enthusiasm among a certain community of Internet users. The Meta project, due to its scale, requires long-term work which cannot bear fruit as quickly as investors would like.

Despite the current difficulties, it remains possible that the metaverse could come to fruition in the near future, but this will require significant effort and adjustments from Meta and others in the industry.

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