Metaverse: Virtual Worlds, Real Issues
The Metaverse offers immersive virtual worlds for new social and economic interactions, but raises concerns about digital divides and user well-being.
Topics: technology, individual and values, media
Example
After renaming itself Meta in October 2021 to signal a bet on the metaverse, the company reported in February 2022 that its Reality Labs division, which makes virtual reality headsets and virtual worlds, lost about US$10.2 billion in 2021. Losses kept growing, passing US$60 billion in total over the following years, while few people used Meta's virtual world Horizon Worlds. By late 2025, reports said Meta planned to cut metaverse spending by up to 30% in 2026 and shift money to AI glasses and other AI products.
Key facts
- Meta's Reality Labs division lost about US$10.2 billion in 2021.
Limitations
- The case shows one company's bet; virtual worlds such as Roblox and Fortnite remain popular, so the metaverse idea is not simply dead.
Evaluations
technology evaluation
Support
Meta's huge spending shows how seriously big technology firms took the idea that people would work and socialise in virtual worlds.
Counterargument
Years of losses and the 2026 cuts suggest the technology, especially bulky headsets, was not ready for mass use.
Rebuttal
Hardware often takes years to mature; the shift to lighter AI glasses may be the metaverse idea evolving rather than failing.
Additional support
Games platforms already host millions of daily users in shared virtual spaces, showing demand exists in some forms.
individual and values evaluation
Support
Supporters argue virtual worlds could let disabled or isolated people socialise and work in ways they cannot offline.
Counterargument
Critics worry about addiction, harassment in virtual spaces and children's safety, which early platforms struggled to manage.
Rebuttal
These risks argue for safety design and age rules, which apply to all online spaces, not only the metaverse.
Additional support
Low uptake suggests many people value face-to-face contact more than technology firms expected.
media evaluation
Support
The metaverse hype of 2021 and 2022 shows how media and investors can amplify a buzzword before evidence of demand arrives.
Counterargument
Coverage turned sharply negative as losses mounted, which may undervalue long-term research.
Rebuttal
Balanced reporting should judge such projects on user numbers and costs, which in this case were public in Meta's own accounts.
Additional support
Many firms rushed to announce metaverse plans in 2021 and quietly dropped them later, a classic hype cycle.
Sources
- CNBC (2022-02-02): Meta's Reality Labs reports $10 billion loss
- South China Morning Post (Bloomberg) (2025-12-04): Meta plans budget cuts as high as 30% to its metaverse efforts in 2026