Thursday, July 7

Zuckerberg had big plans for the metaverse. But he surrenders to the evidence: at the moment they are all dilapidated


Zuckerberg had big plans for the metaverse.  But he surrenders to the evidence: at the moment they are all dilapidated

After dozens of announcements, forecasts of overwhelming optimism, few tangible things and a lot, a lot of smoke, Marck Zucberberg has been forced to bring the metaverse down to earth under pressure from his investors, whom he has had to recognize that the The enormous investment that Meta is going to make in the development of the aforementioned digital universe is going to mean that they will lose a lot of money in the next three or five years, according to Bloomberg.

Likewise, the Meta board of directors has also recognized that some of the most powerful products to make the metaverse a reality will not be viable for another 10 or 15 years.

a risky bet. Meta’s investment in the metaverse is probably the riskiest bet any tech has made to date. In 2021 alone, the company invested 10,000 million for this purpose, with 10,000 employees dedicated exclusively to developing the project and with the intention of hiring another 10,000 in the medium term. Something that could be delayed because, as we explained in Xataka, the company has stopped hiring due to the drop in its profits and the poor global economic situation.

These figures assume that Zuckerberg’s company would be investing in R&D, approximately 30% of its income only in the metaverse. The other large technology companies, in addition to diversifying into various projects, do not exceed 15% of their billing investment in this section, as we reported in Xataka.

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A multi-million dollar business… In theory. Market estimates on the metaverse, of course, invite optimism: according to Bloomberg, the business of this new internet frontier could move around 800,000 million dollars a year by 2024. But they are just that, projections that may not come true.

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delusions of grandeur. The risk, therefore, is considerable, but Zuckerberg does not listen to reason and only after many months of pressure has he relented and admitted that the metaverse is going to be a money-burning machine for investors. As several company employees have explained to Business Insider, the CEO of Meta is obsessed with this project, is not interested in anything that is not related to it, and lacks a coherent and prudent strategy for its development. Therefore, everything suggests that he does not have a plan B if plan A does not turn out as expected.

In fact, in the meeting with investors in which Zuckerberg admitted the losses associated with the metaverse, the creator of Facebook rejected up to 12 proposals from the shareholders, one of them directly related to his risky bet: they asked him that Meta commission a report on whether continued implementation of the metaverse was prudent and appropriate. And since Zuckerberg wields absolute power at the shareholders’ meeting, the company refused.


The news

Zuckerberg had big plans for the metaverse. But he surrenders to the evidence: at the moment they are all dilapidated

was originally published in

Xataka

by Pablo Rodriguez.

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