Meta reported $3.67 billion in operating losses from Reality Labs this past Q3, following a deficit of $5.77 billion in H1 2022. That’s a total of $9.44 billion in losses from Meta’s division for augmented and virtual reality (AR/VR) hardware and software.

For many, Facebook’s new name introduced “the metaverse” as a concept. But a year out, most people have not entered the metaverse. Right now, Meta’s facelift doesn’t appear to have legs. (Quite literally—the little Horizon Worlds avatars still don’t have legs.)

One year after the company’s name change, Meta’s business is in disarray. We explore the reasons for the downturn, our two-year outlook, and how companies that rely on Facebook, Instagram, and other Meta platforms should adjust their strategies.

Zuck has a golden opportunity if he doesn't muck it up: Meta’s market valuation drops are tied to its metaverse aspirations. Its upcoming product releases need to be crowd pleasers.

Technologies like digital clienteling tools and NFTs have created avenues for online engagement that can appeal to luxury consumers while maintaining a sense of exclusivity distinct from the typical public-facing website.

Snap in survival mode: Snap is laying off some of its augmented reality hardware and software talent, stalling years of innovation and putting its leadership position in AR at risk.

Shipments of augmented reality (AR) and virtual reality (VR) devices will increase more than sixfold worldwide over the next four years, from 14.3 million this year to 87.7 million in 2026.

While the metaverse is still taking shape, consumers are already interested in using it to enhance everyday experiences. About 60% of US teens and adults believe that virtual environments will make the process of finding a fitness or exercise routine significantly better, and the same percentage expect them to improve real estate shopping.

Beyond just advertising, Alphabet’s tech touches nearly everything. This report looks at 23 of its most important business areas, examining their maturity, disruption of the market, leverage over partners, integration with other products, and five-year outlook.

Can Meta sustain its VR headset dominance? It has 90% market share, but its Horizon Worlds metaverse apps are only accessible in the US and Canada, leaving room for new entrants to compete.

Remote surgery platform Proximie raised $80M. We unpack how it solves typical telehealth connectivity barriers and why more US health systems are becoming interested in the tech.

Smartphones will gain a few competitors in the next several years. As metaverse tools and wearables like virtual reality (VR) headsets become more commonplace, they will cause growth to slow for everyday devices like smartphones.

All eyes on Apple: As expectations mount for AR/VR product plans, Apple doubles down on iPhone, Mac, and iPad—a move that might indicate its metaverse ambitions are on hold.

Global shipments of augmented and virtual reality (AR/VR) headsets will hit 16.5 million this year, up more than 5 million or 32.1% from last year. Most of these shipments are to consumers, but commercial sales are set to multiply over the next five years, driven by the opportunity for product visualization prior to purchase.

The metaverse promises to be transformative for the digital marketing landscape—at least, as soon as tech platforms figure out how it will actually work.

Among executives worldwide, 72% believe the metaverse will have at least some positive impact on their organization. Some 13% expect this mixed-reality realm to redefine their industry, while 28% think it will enable new business practices and help them reach new customers. Another 28% anticipate the metaverse will have minimal or no positive effect on their company.

Once the domain of gamers and young social media users, AR and VR are entering the mainstream. This year, more than a quarter of the US population will use AR and nearly a fifth will use VR. As device-makers improve VR headsets and AR spreads to new use cases, the number of AR and VR users will continue to grow over the next four years, with AR outpacing VR.

Retailers have long had an eye on augmented reality (AR), but it still has unrealized potential for shopping purposes.

Nearly 2 in 5 augmented reality (AR) users in the US will shop with the technology this year, for a total of 35.0 million retail AR users. That base is up 18.8% from last year and will continue to grow at double-digit rates through 2024 as shoppers make use of virtual try-on and product visualization features.

Augmented and virtual reality (AR/VR) continue to expand their reach as new devices and applications make them more accessible to consumers.