What's Next for Meta's Metaverse

Meta's metaverse, a virtual reality-based internet, has been a topic of intense speculation and investment since its inception. As the company continues to pour resources into its Reality Labs division, the question on many investors' minds is: what's next for Meta's metaverse?

Meta's metaverse strategy is multifaceted, focusing on enhancing user engagement, expanding revenue streams, and leveraging new technologies. The company's long-term vision for the metaverse aligns with its overall growth plans, aiming to diversify beyond its core social media platforms and create new revenue streams.

One of the key challenges Meta faces in scaling the metaverse is low user engagement. As of 2024, Horizon Worlds, Meta's open-world VR platform, has around 200,000 monthly active users, far from its initial target of 500,000 in 2021. To address this, Meta is focusing on AR glasses and mixed reality headsets, which have seen more success. The Meta Quest 3, launched in 2023, has seven of its top 20 apps as mixed reality apps within months, indicating a commitment to making metaverse technology more accessible and engaging.



Meta's metaverse strategy is bolstered by strategic partnerships and collaborations. In 2023, Meta released the Meta Quest 3, its first mass-market mixed reality headset, with seven of the top 20 apps being mixed reality apps within months. Meta's AR glasses partnership with Ray-Ban has also shown success. To measure progress, track user engagement with mixed reality apps, AR glasses adoption, and the growth of the Meta Quest 3 user base. Additionally, monitor the development of AI-powered features like the Meta AI assistant, which combines vision and language understanding for hands-free interaction.

Meta's metaverse faces potential regulatory and ethical concerns, including data privacy, content moderation, and virtual harassment. Meta has acknowledged these issues and is working to address them. In 2023, Meta published a whitepaper outlining its approach to responsible innovation in the metaverse, emphasizing user safety, privacy, and transparency. The company has also invested in AI and machine learning to enhance content moderation and detect harmful behavior. Additionally, Meta is collaborating with external experts and stakeholders to develop guidelines and best practices for metaverse governance.

In conclusion, Meta's metaverse strategy is evolving, with a focus on enhancing user engagement, expanding revenue streams, and leveraging new technologies. As the company continues to invest in AR and VR technologies, the metaverse's growth and success are likely to accelerate, making it an attractive investment opportunity. However, investors should remain aware of the challenges and potential regulatory concerns surrounding the metaverse and monitor Meta's progress closely.