Meta's Reality Labs division reported a $4.5 billion operating loss in Q2, slightly better than analyst expectations of $4.55 billion. Since 2020, the division has accumulated total losses exceeding $50 billion in pursuit of metaverse development.

Revenue for Reality Labs reached $353 million in Q2, showing 28% growth from $276 million year-over-year, though falling short of the projected $371 million. This revenue primarily comes from Quest VR headsets and Ray-Ban Meta smart glasses.

Meta continues expanding its smart glasses collaboration with Ray-Ban parent company EssilorLuxottica, with Meta planning to become a shareholder. The second generation of smart glasses launched in October at $299, with CEO Mark Zuckerberg highlighting the potential for "fashionable AI glasses without a display."

In the VR space, Meta launched the Quest 3 headset in September at $499, competing with Apple's Vision Pro, which entered the market at $3,500 in the US and ¥29,999 ($4,128) in China.

Despite significant ongoing losses, Meta remains committed to its metaverse vision, which Zuckerberg considers the "next era of personal computing," backed by advances in artificial intelligence and language models.

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