[HN Gopher] Meta plans to devote ~20% of overall costs to Realit...
       ___________________________________________________________________
        
       Meta plans to devote ~20% of overall costs to Reality Labs in 2023,
       up from 18%
        
       Author : donsupreme
       Score  : 49 points
       Date   : 2022-12-19 17:54 UTC (5 hours ago)
        
 (HTM) web link (www.bloomberg.com)
 (TXT) w3m dump (www.bloomberg.com)
        
       | Beaver117 wrote:
       | Why didn't Meta just buy VRChat and improve that? Why did they
       | have to build their lame metaverse from scratch?
       | 
       | Serious question
        
       | fxtentacle wrote:
       | I believe Zuckerberg's play with buying Oculus was brilliant. I
       | had basically stopped using anything Facebook but I couldn't
       | resist the temptation to play Robo Recall with a Quest. So now he
       | got a set of updated personal data from me and I even paid him
       | for the privilege.
       | 
       | I believe what Zuckerberg is doing here is to publicly announce
       | that he has funding ready to purchase whoever could be the next
       | Oculus. Based on Carmack's complaint, I don't have high hopes of
       | Meta building the metaverse in-house. But if I was considering
       | working on metaverse technology, this might be a nudge for
       | entrepreneurs and their investors to get started, because
       | Zuckerberg just painted the map leading to a unicorn exit.
       | 
       | I like electronics and have AI + PCB experience. Anyone wanna
       | start the next Oculus ;) ?
        
       | nyrulez wrote:
       | I want to admire their tenacity and faith. Lot of great things
       | can come out of that. But then there's the financial side and
       | responsibility. So it's a tough call. But as a non-stock owner
       | for Meta, I'd favor tenacity of innovation than an ever
       | increasing stock price.
       | 
       | I've been an avid Quest 2 user. There is nothing else like it. I
       | use it for portable workouts and it does the job pretty well.
       | Meta is years ahead of anyone else in this field.
       | 
       | But will this ever reach mainstream adoption? I think Zuck and
       | others need to understand that the ask of putting a headset on is
       | a pretty big one and is one of the biggest impediments, even if
       | the stuff inside that headset can be pretty cool! I just don't
       | see a path to that ever becoming normalized in our society or
       | workplace.
       | 
       | I feel Zuck is letting his personal bias inform his decisions
       | because he is an avid early adopter and is perhaps super comfy
       | with VR headsets. I mean he bought Oculus in the first place !
       | 
       | I personally think stuff like VR/AR doesn't become truly
       | mainstream until we hit a contact lenses level form factor. I
       | know that sounds way out there but I don't see any other way.
       | Getting to a sunglasses form factor will be a big win but still
       | won't be enough to go mainstream, perhaps 25% of the way. And
       | even that is easily 10 years away if not more.
       | 
       | If I was part of their innovation team, I'd buy another smaller
       | company like Nreal Air that's innovating in he sunglasses
       | display/AR space quite well and then try to marry VR/AR with
       | that. If they can achieve that, they will get a big jump in
       | adoption. It will require an external computation box, perhaps a
       | smartphone sized one, but that's still an easier ask than putting
       | a whole headset on.
        
         | prng2021 wrote:
         | Sunglasses type form factor makes sense. I think a contact lens
         | form factor would hurt adoption though. Some people wear
         | contacts full time and you wouldn't want another similar sized
         | device stuck on top of it. A lot of people do not wear contacts
         | and it can be a major struggle to force yourself to stick
         | something onto your eyeballs.
        
           | nyrulez wrote:
           | I agree that sticking contact lenses isn't going to be too
           | fun unless the utility is really good and then it becomes a
           | part of your routine.
           | 
           | Light weight glasses is another option but it does limit the
           | utility a lot in many scenarios.
        
           | ElevenLathe wrote:
           | Presumably they could just manufacture them ("them" being
           | magical computers the size of a contact lens, so I know I'm
           | going out on a bit of a ledge here) to also include your
           | prescription along with the magic computer bits.
        
         | illegalsmile wrote:
         | I just picked up a second hand quest 2, pretty cool. What
         | workout app(s) do you use? So far beat saber can get the heart
         | rate up a little depending on what song and difficulty you
         | choose but I haven't tried anything else. Mostly I've just been
         | playing through Alyx.
        
           | nyrulez wrote:
           | My favorite so far is Les Mills VR. It feels like a genuine
           | workout, especially the longer more intense ones.
           | 
           | Other famous ones are Supernatural, FitXR etc. But they all
           | have subscription models and Les Mills doesn't.
        
       | ssgodderidge wrote:
       | Isn't it possible that since they cut costs (inhumane way to
       | describe layoffs), as long as they keep the investment dollars
       | the same, the percentage would go up?
        
       | joshstrange wrote:
       | I'm bullish on VR/AR but FB seems to have totally lost the plot.
       | The metaverse is a joke, the Meta Quest 2 software is utter
       | garbage (super buggy, unintuitive, extremely frustrating), and
       | the Quest Pro was incredibly lackluster.
       | 
       | I enjoy my Quest 2 overall once you get into a game but the OS is
       | trash and FB's layer on top of Android is not well done. My
       | friends and I spend way more time than we should just trying to
       | get into a "Home" all together and launching a game from the OS
       | is a crapshoot. The OS is completely full of papercuts from
       | unresponsive UI to things like switching to passthrough kills
       | party audio for a second or two. Staying in passthrough for more
       | than a minute (sometimes less) will kick you from the game you
       | are playing which is infuriating. Do they think that people don't
       | need to step away to deal with kids/pets/drinks/bathroom/etc? I
       | can't tell you how many gaming sessions have been ruined or
       | screwed up because someone had to take a short break and the
       | OS/Game just shit the bed.
       | 
       | I was excited for the Quest Pro and was ready to buy one if it
       | was compelling... it was not. The specs are a minor bump over the
       | Q2, the color passthrough camera feels very "beta", and from
       | videos I've watched of it in action I'm glad I didn't get one.
       | The (literal) bending of "reality" when using passthrough looks
       | terrible and feels like it would really break immersion. The
       | controllers did look interesting and I haven't heard anything
       | really bad about them, they do seem like a big step up from the
       | Q2 controllers. You can pair the QPro controllers with the Q2 so
       | that might be something I look into though I'd prefer to never
       | get Meta another dollar if I can help it. I'm looking forward to
       | whatever Apple is working on.
       | 
       | Sidenote: Maybe it's an industry term that I just don't
       | know/understand but "of overall costs" doesn't make sense to me.
       | The Subtitle has "Company says 20% of spending to go toward
       | Reality Labs" which makes a lot more sense.
        
       | Pwntastic wrote:
       | https://archive.vn/FMGOH
        
       | tibbydudeza wrote:
       | Reminds of 3D TV which fizzled out because folks don't want to
       | wear glasses.
        
       | trafficante wrote:
       | As much as I'm unhappy about the death of PCVR thanks to the
       | Quest 2, I have to agree with Carmack that it was very close to
       | being the Right Device for bringing VR to the masses - and the
       | sales numbers mostly reflect this.
       | 
       | But I can't help but feel _something_ dysfunctional happened
       | internally since the Quest 2 launch.
       | 
       | The Quest Pro should not have been launched at $1500 with its
       | current feature set/SoC and no depth sensor. And I find it
       | difficult to accept the "enterprise market" claim as anything
       | more than a cope when I go into BestBuy and see it being demoed
       | to consumers and displayed prominently in an endcap.
       | 
       | Then you look at the software side. Horizon is a horrible pile of
       | ugly jank that no one uses. I gave it another shot for the first
       | time in ages last week after seeing an advertising campaign for a
       | deep faked Notorious BIG concert in Horizon. Long story short,
       | the "live metaverse concert" had fewer attendees than an average
       | Wendy's and the performance was low res 2d video on a screen.
       | Embarrassing stuff.
       | 
       | As far as gaming is concerned: Meta spent hundreds of millions
       | acquiring some of the largest third party VR devs over the past
       | couple years - and still not a single game has been announced.
       | 
       | It sure smells like rotten bureaucratic infighting combined with
       | Zuck doggedly chasing where he thinks the puck is going and
       | Carmack's resignation letter certainly doesn't disabuse me of the
       | notion.
        
         | spaceman_2020 wrote:
         | I'm bullish on the metaverse only because I see it as the only
         | viable solution to one of the biggest problems in the world
         | right now: loneliness.
         | 
         | Sure, metaverse interactions are a distant second to real world
         | interactions, but at this point, real-world doesn't work out
         | for lonely people anymore, and I haven't seen any compelling
         | real world solutions either.
         | 
         | Loneliness is a problem that needs to be fixed. You'd ideally
         | fix it irl. But if you can't, at least giving people a virtual
         | experience of togetherness might be worth it
        
           | tqkxzugoaupvwqr wrote:
           | How is loneliness fixed by putting on goggles? Why wasn't it
           | solved by phones?
        
         | joezydeco wrote:
         | Was the Quest 2 cheap because the BOM was low, or because
         | Facebook subsidized hundreds of dollars of each headset?
         | 
         | If VR is costing them 10s of billions of dollars yearly, where
         | else could that much money have gone?
        
         | bni wrote:
         | I agree with everything in your comment.
         | 
         | I think Zuck is impatient. He wants to skip the gaming stages
         | of the VR evolution.
         | 
         | Yet VR must be a huge gaming success before something like a
         | social network in VR can happen. Quest 2 and Rift before it is
         | almost that, but still a large part of gaming fans remain
         | unconvinced. But that is surely possible to solve.
         | 
         | We are at the Doom/Quake stage and he wants to skip WoW,
         | Fortnite and get directly to what comes after that by building
         | the equivalent of VRML or Second Life. Its too early.
         | 
         | Also AR is a distraction, not possible to do well with tech
         | existing today, if ever.
        
           | SideQuark wrote:
           | >He wants to skip the gaming stages of the VR evolution
           | 
           | You don't need a gaming stage to make it useful any more than
           | you needed a gaming stage of face to face video conferencing
           | to make FaceTime and Zoom and the like extremely useful.
           | 
           | The proper plan is to try to get many use cases working, and
           | try to solve technical problems for each, until one of them
           | meet in a useful product or solution. Claiming it has to be a
           | certain way will miss quicker and possibly much more fruitful
           | cases.
        
             | zemvpferreira wrote:
             | But here's the thing: no group but gamers is excited enough
             | about VR to even be a candidate for a market right now. The
             | only people who want to strap goggles to their face are
             | those looking for gaming experiences. Why try to dodge that
             | reality?
        
         | ecshafer wrote:
         | VR has a place. I don't know if Meta is capable of getting it
         | there. Occulus is a great piece of tech, I own one and I enjoy
         | it. My wife who does not game at all, also likes it. There are
         | games like Beat Saber a few others that are good for getting
         | the masses in. And games like Half Life Alyx that can get
         | gamers in. But outside of that there is nothing that really
         | makes it seem like an improvement to life, its still a novelty.
         | 
         | >when you look at the software side. Horizon is a horrible pile
         | of ugly jank that no one uses. I gave it another shot for the
         | first time in ages last week after seeing an advertising
         | campaign for a deep faked Notorious BIG concert in Horizon.
         | Long story short, the "live metaverse concert"
         | 
         | Why would I want to go to a low resolution hologram concert and
         | sit in my house instead of being at a concert? That's not cool.
         | People don't take photos of that, they don't talk about it at
         | lunch the next day, they don't reminisce about that. Its
         | divorced from people.
         | 
         | I think that the "Metaverse" is actually on the right track
         | somewhere but doesn't have the vision of a product to get it
         | finished. I would love the Metaverse as some kind of "tabletop"
         | simulator. My vision of the metaverse after Zuck's announcement
         | was that it would be cool if I could play rpgs in there, where
         | I can customize my avatar, and a gm can build a dungeon out.
         | Let me do fantastical otherworldly things, not just try and
         | save myself a 20 minute drive.
         | 
         | That is where I think metaverse will win, unique experiences
         | that I can only get in there. The problem is that the Metaverse
         | is trying to see copies of real world experiences, but worse.
        
         | f0e4c2f7 wrote:
         | I think in the Quest you can see Zuckerberg trying to create
         | Meta's iPhone. Most of Apple's profit comes from selling
         | hardware for more than it costs to make it. Sure there are
         | other phones but most people would prefer an iphone, for
         | various reasons. Branding is not the least of which.
         | 
         | I see the quest pro as a similar product to the iphone pro.
         | Technically better, but almost as much of a status symbol to
         | ramp up profits long term as much as anything.
         | 
         | I suspect we'll see those two lanes continue to be developed
         | with fairly fast releases on a similar schedule to iphones -
         | with Mark's dream being that one day Meta will be the new Apple
         | complete with the walled garden app store.
        
       | nharada wrote:
       | At this point doesn't feel like there's many other options long
       | term for Facebook. If they _weren 't_ doing this, how long would
       | they have before all that money is gone anyway? Anyone have
       | suggestions on something besides VR to replace their current
       | business?
        
         | arthurcolle wrote:
         | Why not get into IaaS infrastructure? Like Facebook Cloud or
         | something
        
           | darkwizard42 wrote:
           | Google and Microsoft are burning so much $$$ right now
           | competing and buying share, I don't think Facebook wants to
           | get into that business.
        
             | raverbashing wrote:
             | MS actually might get it to be profitable, they can always
             | sell/bundle Azure to their current customers
             | 
             | Google's case is harder to make.
        
       | MisterPea wrote:
       | Disclaimer, I'm in the minority of people that's long Meta's
       | vision into VR and own a good amount of Meta stock.
       | 
       | I truly believe that there's like a 95% chance that Meta builds a
       | great product but it hemorrhages money and will ultimately need
       | to be gimped - but I'm really in it for the 5% chance that it is
       | a home run on the financials.
       | 
       | What Zuck is doing represents everything I admire about Silicon
       | Valley (and honestly it's a short list of things) and sure he's a
       | strange personality and questionable past but his vision and
       | persistence into this is something I would hope to see succeed
       | and valued.
        
         | ramblerman wrote:
         | Not even 1% that the product isn't a market fit? Given all
         | first impressions point that way.
        
         | badrabbit wrote:
         | The quality of the product is irrelevant to me as well as
         | millions of others who distrust Meta at the most fundamental
         | level. Right out the gate it has that going against it. Outside
         | the US just about every country is gunning to regulate or fine
         | it somehow. Highly recommend selling what you can now before Q2
        
           | MisterPea wrote:
           | There are millions who distrust Meta, but public perception
           | changes rapidly and companies this size don't die quickly.
           | Their cash cow with ads allows them to stay solvent and make
           | big risks
           | 
           | I'm not saying that Meta will definitely have a change in
           | perception but that's what I'm betting on if they truly do
           | have a competent Metaverse.
           | 
           | The best example of this change is Microsoft - it wasn't too
           | long ago that it was the most hated tech company by the tech
           | community and shareholders alike and now it's the ~least
           | hated~ big tech out there.
        
             | badrabbit wrote:
             | I can't remember any time microsoft was distrusted and
             | considered outright hostile or even a threat to democracy
             | and civil society like fb. I am sure meta will remain a
             | profitable company for itself and be around a decade or two
             | more, even Yahoo is still around but my caution is don't
             | hold its stock because it could be devalued significantly
             | in the short term and then stabilize eventually due to its
             | whatsapp and instagram dominance. Gen-z and younger
             | millenials don't like it much. It is also struggling to get
             | competitive talent due to its reputation and has gotten to
             | a point where innovation=aquisition.
        
           | johnwheeler wrote:
           | The argument goes like this:
           | 
           | I hate meta
           | 
           | Why
           | 
           | Because they track me
           | 
           | Why do they do that
           | 
           | To show me things I might want
           | 
           | Why is that bad
           | 
           | Insert slippery slope
           | 
           | --
           | 
           | At some point you need to be objective and ask if a little of
           | that hate is just herd mentality.
        
             | ljw1001 wrote:
             | >To show me things that I want
             | 
             | That's an extraordinarily generous interpretation of
             | Facebook's motivation.
        
             | spaceman_2020 wrote:
             | My argument is more like "I hate Meta because it silently
             | allowed, even encouraged the ruling party in my country to
             | spread hate, to the point that it led to riots in my city"
        
             | badrabbit wrote:
             | No, they keep shadow profiles on people that never used
             | them as well as record private phone conversations. If they
             | were an individual they would be in prison for stalking so
             | much. Even google is nowhere as bad as Meta, the only
             | company objectively worse is linkedin.
        
         | reacharavindh wrote:
         | Interesting position. My personal thought process around it was
         | : Even if Meta succeeds at bringing a technological marvel to
         | the market(I haven't seen anything convincing that they will)
         | they have amassed astronomical bad reputation with Facebook
         | that anything that is remotely associated with Meta/Zuckerberg
         | would be seen very skeptically. I know I wouldn't jump in and
         | create assets in their virtual world like I uploaded so many
         | pictures and shared location to Facebook in their early days..
         | 
         | Do you believe their bad reputation can be fixed in such short
         | timeframe?
        
           | MisterPea wrote:
           | I think at the end of the day it's whoever creates the best
           | product - right now, I only see Apple with the resources and
           | ambition to tackle something like this but Meta already has a
           | huge head start.
           | 
           | I would like to compare it to AWS' lead in cloud due to their
           | head start but this is obviously a much larger gamble.
        
         | eklitzke wrote:
         | I agree with you (although I don't own Meta stock). There isn't
         | an imminent threat of Facebook collapsing, but if you look at
         | things mid to long term the situation for Facebook isn't that
         | rosy. There is serious competition from newer social media
         | platforms like TikTok. And more importantly, Facebook's revenue
         | is 100% dependent on advertising and their ability to do
         | effective ad targeting is basically dependent on the policies
         | that Google and Apple implement in Android/iOS and
         | Chrome/Safari. Even if you think that Google for example isn't
         | going to seriously change how tracking works in Chrome/Android
         | (since they are also highly dependent on ad revenue),
         | increasing regulation, especially in the EU but also possibly
         | in the USA in the future, could force things to change.
         | 
         | The situation is especially bad for Meta here compared to
         | Google because even though most Google revenue comes from ads,
         | Google still has a bunch of other product verticals like Google
         | Workspace (G Suite), GCP, Android, Chromebooks, GPay, and
         | numerous other products (including moonshot bets like Waymo).
         | And Google doesn't need to rely on ad retargeting nearly as
         | much, they can serve personalized ads just based off the text
         | in search queries and gmail.
         | 
         | In the long term it is very important that Meta diversifies and
         | finds new scalable sources of revenue. Even if you don't think
         | VR has a high probability of success, it's one of their best
         | shots at finding something that has the potential (if
         | everything goes well) to eventually generate serious revenue
         | and diversify their business. It's easy to throw stones but
         | what else do people want from Meta? It's extremely dangerous
         | for them to do nothing. Since they're printing money today they
         | can afford to make these huge bets on their future, and without
         | huge future bets their future looks pretty bleak.
        
           | johnwheeler wrote:
           | I don't think any of googles other bets, even when combined,
           | make anyth8ng close to their ad revenue, they are 100%
           | dependent just like Facebook. As I understand it, their
           | advantage over meta is that lots of search is browser based
           | and also they get intent from user keywords
        
           | MisterPea wrote:
           | > It's easy to throw stones but what else do people want from
           | Meta?
           | 
           | Exactly. However, I think their AI play will need to come
           | into fruition - AI as a service will need to be their second
           | cash cow before anything Metaverse
        
         | ericmcer wrote:
         | This is a good take and something I needed to be reminded of. I
         | find myself hating Zuckerberg and Musk, etc. but I absolutely
         | want to live in a world where humans have walked on Mars, we
         | have amazing VR tech, and cars all run on quiet and clean
         | electricity. They must have real strength of vision to keep
         | pursuing these things that are impossible level challenges,
         | while the entire world hates them for it.
        
       | rolenthedeep wrote:
       | As someone in the VR industry, I think VR will succeed _in spite
       | of_ Facebook.
       | 
       | Meta horizons is a solution in search of a problem, and they
       | refuse to recognize that. Meanwhile the rest of us are making
       | money solving actual problems that actually exist today. I do
       | industrial and cockpit simulations, things that are unsafe or
       | expensive to train on IRL, which is basically an ideal use for
       | VR.
       | 
       | Capitalism simulator VR 22 is not something that anyone wants. It
       | doesn't fill a need or solve a problem other than "how do we
       | extract more money from consumers?". People are starting to
       | become resentful of their entire life being monetized, who wants
       | to have their recreation monetized?
        
       | sytelus wrote:
       | Zuck immediately needs to hope on the AGI train before it leaves
       | the station. He needs to pivote from Metaverse craziness. He
       | needs to come out for making a mistake and course correct ASAP.
       | 
       | He has massive walled garden of data that no one else has. He had
       | MetaAI folks who knows how to build LLMs. He has AppliedML team
       | who knows how to productize AI. He now even has better reputation
       | for saner policies and privacy, thanks to Twitter. He should be
       | able to spin up AI based search engine in 6-12 months. He can
       | produce AI based Office in similar time frame. All the stars are
       | aligned for him if he has courage to course correct.
        
       | c7DJTLrn wrote:
       | Zuckerberg doubling down like this seems quite crazy. I know he
       | was bullish on VR/AR/MR but he's now gambling the future of his
       | company on it. With the bleak view Carmack had on their R&D and
       | his departure, I doubt a breakthrough product is coming any time
       | soon.
        
         | bioemerl wrote:
         | What's the alternative?
         | 
         | Slowly face into obsolescence as kids abandon Facebook and
         | Google/apple use their monopolies to totally invalidate your
         | ability to serve ads?
        
         | jerrygenser wrote:
         | Meta just took on debt for the first time ever in the last few
         | months. Meta could cancel all Reality labs work and keep slowly
         | taking on debt while keeping their central properties alive. It
         | would make for a very boring company but would likely result in
         | decent returns for shareholders. This is what Oracle has done
         | -- their company is boring but their shareholders are happy.
         | 
         | In order to have any sort of future growth story, Meta pretty
         | much needs to create or somehow capture major economics from a
         | new platform like they did for web2.0 and mobile web. Due to
         | antitrust concerns IMO, they can't just acquire their way into
         | more value by acquiring a company like Pinterest so their
         | remaining options are moonshots like AR/VR to invest heavily
         | for the next platform to become ubiquitous and then extract
         | economics from it.
        
           | rdtwo wrote:
           | Meta has no shareholders only suckers that own non voting
           | stocks
        
         | mv4 wrote:
         | He has no choice. The old model (ad revenue) is declining, and
         | the new model (monetizing AR/VR and the Metaverse) hasn't been
         | proven yet.
        
       | andsoitis wrote:
       | This is great for advancing the technology. Probably not great
       | for shareholders. I'm for it.
        
       | ilaksh wrote:
       | My gut feeling is that it's hard to build these devices in ways
       | that are affordable, profitable, untethered, and realistic. I
       | think that hating Facebook and disrespecting Zuck is driven just
       | as much by the popularity of the pastime (hating) as by anything
       | real.
       | 
       | Credit to Zuckerberg for staying the course. I think that other
       | products will soon come out from other companies over the next
       | year or two that because extremely popular, and AR/VR WILL go
       | mainstream, and practically no one will ever admit that he was
       | right about it being a good overall direction to go in. And if
       | they don't end up making a lot of money from these things it
       | won't prove that it wasn't the right direction. It's hard to pull
       | off and there is going to be a lot of competition.
        
       ___________________________________________________________________
       (page generated 2022-12-19 23:02 UTC)