In a conference this week, entrepreneur Scott Galloway predicted that Mark Zuckerberg’s metaverse would ultimately fail.
Key Details
- Earlier this week, entrepreneur Scott Galloway spoke on the likelihood that Meta Platform CEO Mark Zuckerberg’s plans for the metaverse would see success.
- Galloway is hardly the first to suggest the metaverse’s failure—but he did point out more obscure failures in the project.
- Meta’s VR headset is difficult to use, Galloway claimed, and the metaverse is just “a 3D rendering of the World Wide Web.”
Why it’s news
Meta is under increasing scrutiny for its focus on developing the metaverse—especially after reporting yet another drop in earnings earlier this week.
Most major tech companies are floundering this year and Zuckerberg seems to be placing all his bets on the metaverse.
Galloway criticized the overall concept of the metaverse, noting that a 3D model of the internet isn’t all that revolutionary.
Meta recently released its new VR headset, a product Galloway also criticized, both in its function and its effect on teenage users.
Galloway called the overall launch of the headset a failure—pointing out that the shoe brand Crocs sold tens of millions more products than Meta’s headsets.
Galloway’s criticism is just another voice joining the chorus of experts and investors questioning the metaverse.
Backing up a bit
While Meta’s overall costs are on the rise, its profit declined for the fourth straight quarter.
Following the announcement, investors dropped Meta stock—resulting in a 20% decline costing the company $67 billion in its market value.
The company anticipates a 16% increase in overall expenses next year with the possibility of “significant” operating losses through Reality Labs.
As Meta loses users and ad revenue, CEO Mark Zuckerberg seems to be placing all of his bets on the metaverse, a move questioned by many.
In the quarter beginning in July, Reality Labs total losses reached $3.67 billion, an increase from $2.63 billion the previous year. Overall revenue was cut almost in half.
