The Disappointing Reality of the Metaverse

MetaversePlanet November 21, 2022

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Meta, previously known as Facebook and a trailblazer in the social media domain, has recently faced challenges with its heavy investments in the metaverse.

Mark Zuckerberg, the CEO, prioritized the metaverse project, which unfortunately led to significant losses for Meta.

As a result, the company, once celebrated for its groundbreaking achievements, is now seeking new strategies for recovery. The current focus appears to be shifting towards platforms like WhatsApp and Messenger.

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WhatsApp and Messenger will be the company’s new source of money

The Disappointing Reality of the Metaverse

Last year at Facebook Connect 2021, Zuckerberg’s company introduced the concept of the metaverse and subsequently rebranded from Facebook to Meta.

During this period, the business magnate invested significantly in the metaverse universe. However, according to the company’s financial statements released at the end of summer, Meta experienced its lowest performance in recent years.

Lately, confidence in the metaverse project has waned among investors. The company’s valuation dropped by about a quarter over the summer.

With the metaverse not generating the anticipated revenue, Meta is shifting its focus. A few days ago, the CEO informed employees that WhatsApp and Messenger are expected to be the key drivers of sales growth in the upcoming years.

Zuckerberg addressed his employees with the following words;

While there’s a lot of discussion about long-term initiatives like the Metaverse, the reality is that business messaging could be the next major pillar for our company. We’re planning to enhance revenue generation from WhatsApp and Messenger.

There hasn’t been a definitive statement on how Meta plans to monetize WhatsApp and Messenger. However, credible sources suggest that the company may adopt advertising models. Additionally, a paid subscription model for WhatsApp is also being considered.

The Metaverse project has had significant repercussions for both Meta and Zuckerberg. This venture has seen a considerable decrease in the businessman’s wealth.

Starting the year with a personal fortune of $125 billion, he has lost over half of his fortune following a drop in Meta’s net income due to substantial investments in the Metaverse and a decline in user numbers.