Meta's Reality Labs incurs a $4.4 billion loss during the third quarter.

• In the third quarter, Meta's Reality Labs unit recorded an operating loss of $4.4 billion, which pertains to the development of augmented and virtual reality technologies.
• In the third quarter, Reality Labs' revenue increased by 29% compared to the previous year, reaching $270 million, which was below the analysts' forecast of $310.4 million.
• In September, Mark Zuckerberg, CEO of Meta, unveiled the prototype Orion AR glasses, which has sparked enthusiasm and boosted morale among employees regarding his ambitious hardware aspirations.

Although the company demonstrated its Orion prototype AR glasses in September, Facebook is still losing billions of dollars each quarter while developing the emerging metaverse.

Meta reported third-quarter earnings on Wednesday, revealing that its Reality Labs unit, which focuses on augmented and virtual reality technologies, recorded an operating loss of $4.4 billion. Analysts predicted that the unit would post an operating loss of $4.68 billion.

In the third quarter, Reality Labs' revenue increased by 29% year-over-year to $270 million, which was below the analysts' expectations of $310.4 million. The company primarily generates revenue through the sale of Meta's Quest VR headsets and Ray-Ban Meta smart glasses.

In 2014, when it was known as Facebook, Meta first entered the VR market by purchasing the VR startup Oculus for $2 billion.

Mark Zuckerberg, CEO of Facebook and Meta, believes that VR and AR technology could make the company a leader in the next major personal computing platform.

Since 2020, Reality Labs, Meta's virtual reality division, has incurred an operating loss of over $58 billion.

Zuckerberg showcased the Orion device at the company's annual Connect conference in September, after all that spending.

The unexpected success of Meta's Ray-Ban Meta smart glasses has generated excitement and lifted spirits within the company about Zuckerberg's ambitious plans. Meta hopes to capitalize on this success by pitching consumers on a future Orion AR glasses after it courts developers to build apps for the device next year, according to CNBC.

In September, Meta launched its latest VR headset, the Quest 3S, emphasizing its affordability with a starting price of $299. In contrast, the Quest 3 VR headset, released last year, boasted a more powerful performance but came with a higher price tag of $499.

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