Meta’s Reality Labs has now lost more than $21 billion since the beginning of last year
During the second quarter, Meta’s Reality Labs unit, which develops virtual reality and augmented reality technologies, posted an operating loss of $3.7 billion on sales of $276 million.

A subscription service called Meta Quest+, which costs $7.99 per month, was announced by Meta in June.

In the days leading up to Apple’s announcement of its Vision Pro VR and AR headset, Meta’s CEO Mark Zuckerberg revealed pricing details about the Quest 3 headset.

On Wednesday, Meta announced that its Reality Labs unit, which develops virtual reality and augmented reality technologies needed to power the metaverse, lost $3.7 billion in the second quarter.

Sales for the unit decreased from $339 million in the first quarter to $276 million in the second quarter. According to StreetAccount’s analysts, Reality Labs is expected to record $421 million in sales and $3.5 billion in losses.

A rebound in advertising led to an 11% increase in Meta’s revenue, and the company issued a positive sales forecast for the third quarter. It shows that Meta is still primarily an advertising company.

Meta’s Reality Labs unit lost $13.7 billion last year, bringing in $2.16 billion in revenue, fueled in part by the sale of Quest-branded VR headsets. During the first quarter, Reality Labs lost $3.99 billion. Since the beginning of last year, it has lost about $21.3 billion in total.

According to Meta’s earnings report, it expects operating losses in its Reality Labs unit “to increase meaningfully year-over-year due to investments in the augmented reality/virtual reality ecosystem and ongoing product development efforts.”

Meta announced a VR subscription service in June called Meta Quest+ that costs $7.99 a month and is compatible with its Quest 2, Quest Pro, and Quest 3 headsets. As long as people have active subscriptions, they will be able to access two new VR games each month.

Zuckerberg also revealed details about the Quest 3 headset just days before Apple unveiled its Vision Pro VR and AR headset that will cost $3,499 when it launches in 2024. According to the company, the Quest 3 will start at $499, be 40% thinner than the Quest 2, and include a Qualcomm chipset.