In the first quarter of 2022, Meta (FB) ‘s metavers business, known as Reality Labs, traded at a loss of nearly $ 3 billion, causing skepticism in the market about whether metavers really has a place in the digital future. . Meta CEO Mark Zuckerberg noted that current costs are “laying the groundwork” for this technology to reach mainstream.
Despite skepticism, Qualcomm CEO (QCOM) Cristiano Amon agrees that the best is yet to come for the adoption and investment of the metavers.
“It’s real, it’s going to be a great opportunity,” Amon told Yahoo Finance Live. “We started investing in fundamental technologies that allow the fusion of physical and digital spaces more than a decade ago. It’s no secret that because of those early investments, for the more than 40 virtual reality and augmented reality devices that exist in the world, [they are] all driven by Qualcomm “.
Amon joined Yahoo Finance Live from the Milken Institute 2022 Global Conference in Los Angeles in an exclusive interview with Alexandra Garfinkle of Yahoo Finance. Amon spoke about the company’s presence in the auto industry, partnerships, competition and metavers.
And while Meta’s $ 3 billion bill for Reality Labs in the first quarter of 2022 may seem high, the business lost more than $ 10 billion in 2021. Horizon Worlds, RV’s social app Meta’s flagship, the piloted monetization of the creators works at the end of the quarter and is expected to launch a web version to expand access to those who do not have any Oculus Quest 2 or similar headset. The platform reached a milestone of 300,000 users earlier this year.
According to Amon, Qualcomm continues to maintain new and secure partnerships with industry giants such as Meta and Microsoft (MSFT) to provide hardware and software for its extended reality (XR) business.
“One of our most important collaborations is with Meta,” he said. “We’ve had a very successful partnership with them for virtual reality with Quest and Quest 2. We announced at CES that we’re now making a custom augmented reality chip with Microsoft as Microsoft HoloLens prepares to scale, and we announce an association, for example [a partnership] with ByteDance for virtual reality for Tiktok “.
The Federal Reserve raised interest rates by 0.50% on Wednesday in an effort to curb rising inflation. In light of the Fed’s interest rate hike campaign, uncertainty remains when it comes to investing in metaverse, as investors begin to favor value over growth stocks.
The issuance of publicly traded funds such as the ProShares Metaverse ETF (VERS) shows that some investors, both institutional and retail, recognize the opportunity of the metaverse. However, the fund and similar ETFs have been affected by macroeconomic conditions.
In any case, Amon remains optimistic about the future of metaverse and XR technology.
“We have a number of different developments to eventually be able to create a companion for your smartphone with fully immersive augmented reality glasses that will really look like [normal glasses]”And I think it’s a great opportunity. It could be as big as phones.”
Thomas Hum is a Yahoo Finance writer. Follow him on Twitter @thomashumTV
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