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Zuckerberg is turning trillion-dollar Facebook into a 'metaverse' company, he tells investors

·4-min read

Following the quarterly release of Facebook's earnings numbers where the company's CFO takes time to walk through the nitty gritty of the company's financials, CEO Mark Zuckerberg took a moment to zoom out and wax on the company's future goals, specifically calling out his ambitions to turn Facebook into "a metaverse company."

"I wanted to discuss this now so that you can see the future that we're working towards and how our major initiatives across the company are going to map to that," Zuckerberg said on the call. "What is the metaverse? It's a virtual environment where you can be present with people in digital spaces. You can kind of think of this as an embodied internet that you're inside of rather than just looking at."

These comments echoed an interview he gave to The Verge last week, detailing some of the company's future goals.

The metaverse offers Facebook an opportunity to draw a line between its moonshot efforts and its core business, building a wide-reaching hub that shines on augmented reality and virtual reality platforms but feels just as friendly on mobile and desktop. Zuckerberg's definition of metaverse is more broad than some others, but comes down to building a version of the web that feels more like an MMO than a collection of web pages.

Facebook Horizon World Builder
Facebook Horizon World Builder

Early renders of Facebook's Horizon platform. Image Credits: Facebook

It’s hard to imagine now, but Facebook was late to mobile. A decade ago, Facebook’s apps were buggy, crash-prone HTML5 experiences, even as smooth native mobile apps were quickly becoming the standard for major software makers. By 2012, Zuckerberg realized that apps were the future — quickly becoming the present — and the Facebook founder scrambled to turn the company’s attention toward mobile at every level. Facebook doesn’t intend to make the same mistake twice. That philosophy first became abundantly clear when the company bought the industry-leading VR hardware maker Oculus in 2014.

“Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,” Zuckerberg said around the time of the $2 billion acquisition. “Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate.”

Becoming "a metaverse company" is a further evolution of this thinking. For many, Roblox has seemed to be the clearest embodiment of the metaverse today -- a social world where users can jump between virtual experiences while creating their own experiences inside it. It's notably not a virtual reality experience instead thriving largely on mobile and desktop. Roblox's vision has resonated with investors, the now-public company is worth more than $45 billion -- a fraction of Facebook's value but more than almost any other game company in the West.

Facebook has been signaling its continued interest in this space. In June they bought a Roblox-like platform called Crayta for an undisclosed sum, and they've spent much of the last several years buying up a host of VR-focused game studios.

The company has tried to build its own VR-centric social hub but most have fallen flat. Facebook's metaverse-like Horizon platform garnered major headlines when it was announced nearly two years ago, but the company has had little to say during its exceedingly quiet beta period. This week, Facebook's Andrew Bosworth detailed that Gaming VP Vivek Sharma would be taking over the effort under a new metaverse-centric product group led by Instagram's Vishal Shah.

There's a very particular distinction in Facebook's choice of rebranding itself as a "metaverse" company as opposed to an AR/VR one. While some might have seen specialized hardware as essential to a spatial internet, it's become increasingly clear that users aren't clamoring to embrace early headsets even as other new gaming platforms greatly accelerate their growth. While the company's Quest 2 headset has sold much better than its previous devices -- according to Facebook, which has yet to release any hard sales numbers -- it's unclear whether they truly need a world full of users with Facebook glasses and headsets strapped to their faces in order to embrace this metaverse ideal -- or whether that would just be the cherry on top.

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