Earlier this week, Facebook said that it is spending on the metaverse would erase $10 billion from its overall profits in 2021.
Zuckerberg said nothing about the future of Facebook’s core online ad business in the metaverse. Presumably, the company could make billions of dollars showing people ads in the metaverse that are targeted to them based on what they do in the virtual world.
Zuckerberg pitched the need for outside developers to build products for Facebook’s metaverse, such as games, concerts, and other activities to make it akin to the real world. Theoretically, Facebook could take a cut of any money that developers make, just as Apple and Google charge developers fees for selling apps in their app stores.
More so, the metaverse is Facebook’s opportunity to dominate the next frontier of computing, perhaps even establishing the metaverse equivalent of an app store before its rivals can.
The results could be profoundly lucrative, or it could be like Second Life, where the reality fails to live up to the hype.
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