In its second-quarter earnings report, Meta disclosed that Reality Labs, which focuses on virtual reality devices and wearables, generated revenue of $431 million, an increase from $370 million a year earlier. However, the operating loss widened from $4.53 billion in the same quarter last year, surpassing analysts' expectations of a $5.07 billion loss on revenue of $423.4 million.
Since late 2020, Reality Labs has accumulated over $80 billion in total operating losses. The division is known for its Quest-branded VR headsets and Ray-Ban Meta glasses, developed in partnership with EssilorLuxottica.
CEO Mark Zuckerberg's vision for a digital future has not resonated with consumers as anticipated, prompting a strategic shift towards more consumer-friendly devices like the Ray-Ban glasses. This ongoing financial strain raises questions about the viability of Meta's long-term investment in virtual reality technology