Can Mark Zuckerberg save Metaverse?

There was a time before ChatGPT when the tech world was talking about something completely different.

Remember the Metaverse?

For a while it dominated the technology news. A virtual reality world that would be so immersive and attractive that we would spend part of our lives in it.

The driving force behind the Metaverse narrative was Mark Zuckerberg.

The tech billionaire was so committed that he changed Facebook's name to Meta in October 2021.

“The defining quality of the Metaverse will be a sense of presence,” the Meta Chief said in announcing the change.

“The feeling of being truly present with another person is the ultimate dream of social technology. That’s why we’re focused on making this happen.”

“In the metaverse you can do almost anything you can imagine,” he said.

No one could accuse him of lacking ambition.

But almost two years later, Zuckerberg's vision of the metaverse is in trouble.

In April he had to deny that he was now rejecting the idea.

“The narrative has emerged that we are somehow moving away from focusing on the metaverse,” he told investors in April. “So I just want to say upfront that this is not correct."

On Wednesday, the company is hosting its annual virtual reality event called Meta Connect.

Perhaps it's an opportunity for Zuckerberg to reiterate his reasons for taking over a hugely profitable social media company and turning his attention to a hugely unprofitable virtual reality company.

How unprofitable? Well, Meta's latest numbers are stunning.

Reality Labs, as the name suggests, the virtual and augmented reality arm of Meta, has lost a staggering $21 billion since last year.

Some of the losses are due to long-term investments. Meta did not expect short-term returns. What's concerning for the company, however, is that there's very little evidence so far that this giant racket works.

Horizon Worlds, a game published by Meta, comes closest to creating a metaverse.

users can access various environments (cafes, comedy clubs, nightclubs, basketball courts) to hang out and play games.

Meta claims to have 300,000 monthly users - a small number compared to the billions of people on Facebook and Instagram.

And at any given time, far fewer people are actually playing the game.

user reviews complain about the empty worlds and say there just aren't enough people to make it fun. Or if there are people, they are usually children.

The biggest criticism, however, is that it looks a bit silly, similar to the graphics of the 2006 Nintendo Wii and not the luxurious virtual reality experience that Zuckerberg promised.

When it comes to Meta's virtual reality headsets, it's hard to imagine how current technology comes close to the vision that the company's boss has laid out.

According to a Verge article from earlier this year, Meta's headphones have sold more than 20 million units. That's not bad, and the Quest 2 headphones received positive reviews.

But in terms of numbers, there are many gaming consoles that have fared better.

Sony, for example, claims that its PlayStation 5 has sold 40 million units.

And remember, Zuckerberg doesn't compare success to a gaming console.He wants to revolutionize the way we all live, work and, as he would call it, “connect.”

To put it bluntly: virtual reality is still marginal. It's not the way most people play, and it's definitely not the way most people spend their time. Real life is stubbornly attractive.

In July, someone asked Zuckerberg at an investor meeting why he spent so much money.“Help us understand,” they said.

Zuckerberg said he understood the frustration and admitted: “I can't guarantee you that I will be right on this bet. I think that’s the direction the world is moving.”

And so on Wednesday we'll hear from Zuckerberg as he tries to breathe life into a concept that desperately needs oxygen.

We'll likely hear a lot more about Meta's new headset, the Quest 3, and how Horizon Worlds is moving to mobile and desktop devices (so you don't have to wear headphones to play).

We will also hear a variety of new AI announcements.

We will undoubtedly hear again that the Metaverse is a long-term project, that we have not yet seen the real Metaverse.

Certainly

Zuckerberg still believes in it, as Meta's Checkbook expresses. In July, he said Reality Labs was expected to post even bigger losses next year.

So the Metaverse is still very much alive in Meta, but most of the rest of the tech world seems to have moved on.