Facebook is shifting focus to Metaverse Division to spend about $ 10 billion this year

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In the technology industry, the concept of the metaverse – a series of virtual experiences – is becoming a buzzword. It generally refers to shared virtual environments that people can access through the internet. Most tech companies, including Facebook, have invested heavily in them. The social media giant plans to invest up to $ 10 billion (about Rs.74.963 billion) in its Metaverse division called Facebook Reality Labs this year, which is developing Augmented Reality (AR) and Virtual Reality (VR) hardware and software is mandated, and content. That focus on emerging technologies came at a time when Facebook’s revenue is tight.

Facebook announced this week that it will begin reporting revenue for its Reality Labs segment separately from its main advertising business. The move is a sign to investors that they should rate the Metaverse division differently than they rated Facebook.

“We plan to outsource Facebook Reality Labs (FRL) as a separate reporting segment. As mentioned earlier, we are devoting significant resources to our augmented and virtual reality products and services, which are an important part of our work to develop the next generation of online social experiences, ”the company stated in its third quarter press release.

It’s also a move to perhaps divert attention from the fact that Facebook missed its revenue expectations by around $ 1 billion (about Rs.7,496 billion), “which speaks to some of the company’s problems at the moment,” reported The Verge.

Facebook said its earnings have declined due to the pandemic, the economy, and Apple’s recent privacy changes. But the company is facing extreme heat after a whistleblower recently testified in US Congress telling lawmakers that Facebook knew its apps were damaging the mental health of young users.

Now Facebook has decided to focus on its Metaverse division. It sees AR and VR as the core of the “next generation of online social experiences”.

“We expect our investment in Facebook Reality Labs will reduce our total operating profit by approximately $ 10 billion in 2021. We are committed to bringing this long-term vision to life and we expect to increase our investments over the next few years, ”the company added in its third quarter press release.

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