<!-- wp:html --><p>Mark Zuckerberg as an avatar during Connect 2022</p>
<p class="copyright">Meta</p>
<p>Meta has thrown $36 billion at the metaverse but plans to spend many billions more on the project.<br />
Wary investors are calling for Meta to focus its effort on its profitable divisions.<br />
Insider compiled a list of tech breakthroughs that cost far less than the metaverse push.</p>
<p>The metaverse may be the most expensive project in the history of tech.</p>
<p>Meta, according to an Insider analysis of the firm's financial filings, <a href="https://www.businessinsider.com/charts-meta-metaverse-spending-losses-reality-labs-vr-mark-zuckerberg-2022-10">has pumped $36 billion into its Reality Labs division since 2019</a>.</p>
<p>Reality Labs houses the social-media giant's VR and metaverse arms, and remains massively unprofitable, posting a $3.7 billion operating loss on revenue of $285 million in its most recent quarter, down by almost half compared with the previous year. </p>
<p>The social media giant reported its second consecutive quarter of lower revenues this week, prompting some anxious <a href="https://markets.businessinsider.com/news/stocks/meta-facebook-share-price-mark-zuckerberg-metaverse-dream-earnings-2022-10">investors to urge</a> Meta to refocus on its more reliable core businesses — ads and paid messaging.</p>
<p>However, Mark Zuckerberg is <a href="https://www.businessinsider.com/meta-earnings-report-metaverse-spending-rises-mark-zuckerberg-2022-10?r=US&IR=T">continuing to pour billions</a> into his metaverse dream, arguing that it's the future of computing.</p>
<p>The Meta CEO said the company would lose a "significant amount" of money over a three to five-year period at this year's shareholder meeting.</p>
<p>While Zuckerberg may believe hemorrhaging cash is the path to the metaverse's success and profitability, Insider has put together this list of highly successful tech innovations that cost just a fraction of how much Meta has already spent. These figures have not been adjusted for inflation.</p>
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<div class="slide">Apple's iPhone
<p class="copyright">Getty Images</p>
<p>The iPhone, released in 2007, was in development for years at Apple, with some of the brightest minds in engineering working on the device.</p>
<p>Reports vary as to how much Apple actually spent creating it. According to one anonymous senior executive, speaking in 2013, the iPhone <a href="https://www.businessinsider.com/apple-spent-over-150-million-to-create-the-original-iphone-2013-10?r=US&IR=T">cost $150 million to make</a>.</p>
<p>That's a low figure — tech publication The Information accounted for Apple's research and development spend between 2002 and 2007, <a href="https://affiliate.insider.com/?u=https%3A%2F%2Fwww.theinformation.com%2Farticles%2Fthe-metaverse-money-pit-how-metas-70-billion-bet-compares-to-techs-biggest-gambles">coming up with a figure of $3.4 billion</a>.</p>
<p> </p>
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<div class="slide">Android
<p class="copyright">Reuters</p>
<p>Android, now the most popular mobile software in the world, started as a standalone startup and <a href="https://www.businessinsider.com/how-android-was-created-2015-3?r=US&IR=T">initially struggled to get any cash</a> from investors. Insider previously reported that founder Andy Rubin received $10,000 and an undisclosed additional amount of seed funding from famed technologist Steve Perlman to keep the company going.</p>
<p>Google in 2005 scooped Android up for <a href="https://www.businessinsider.com/android-original-pitch-deck-smartphone-google-acquisition-phone-operating-system-2021-8?r=US&IR=T">about $50 million</a>. The first Android phone, the HTC Dream, launched in 2008. In that period, Google spent about $6.6 billion on research and development, <a href="https://www.sec.gov/Archives/edgar/data/1288776/000119312509029448/d10k.htm">annual filings show</a>, though that would include areas beyond just Android OS. There are now more than 3 billion active Android devices, according to Google — so Zuckerberg is well behind on bang for his buck.</p>
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<div class="slide">Self-driving cars
<p class="copyright">Getty Images</p>
<p>As yet, fully self-driving cars are not widely available, despite major tech firms and startups plowing billions of dollars into their development.</p>
<p>Again, estimates here vary. McKinsey estimated in 2021 that investors had spent around $100 billion since 2010 developing the technologies core to autonomous vehicles, <a href="https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/mobilitys-future-an-investment-reality-check">such as radars and cameras and lidar</a>. That outstrips Meta's $36 billion on the metaverse, but is over a considerably longer period.</p>
<p>On a company basis, the estimates are more conservative, and come in cheaper than Meta's fledgling VR platform.</p>
<p><a href="https://www.nytimes.com/2021/05/24/technology/self-driving-cars-wait.html">The New York Times in 2021</a>, citing Pitchbook, suggests specific firms will each spend up to $10 billion each getting autonomous vehicles on the road. The Information <a href="https://affiliate.insider.com/?u=https%3A%2F%2Fwww.theinformation.com%2Farticles%2Fthe-metaverse-money-pit-how-metas-70-billion-bet-compares-to-techs-biggest-gambles">estimates</a> that total investment by companies to bring autonomous cars to market comes in around $27 billion, including Waymo, Cruise, Motional, Zoox, and Argo AI.</p>
<p> </p>
</div>
<div class="slide">The Xbox
<p class="copyright">Getty Images</p>
<p>Microsoft debuted its first Xbox console in 2001 after investing (or losing) <a href="https://venturebeat.com/games/making-of-the-xbox-1/">more than $4 billion on its development</a>.</p>
<p>It took just 20 months to go from conception to launch, <a href="https://venturebeat.com/games/the-making-of-the-xbox-part-2/">according</a> to Dean Takahashi, author of "Opening the Xbox: Inside Microsoft's Plan to Unleash an Entertainment Revolution." </p>
<p>The console is one of the best-selling games consoles of all time, and it has about <a href="https://gs.statcounter.com/os-market-share/console/worldwide/">14% market share globally</a>.</p>
</div>
<div class="slide">Amazon Echo speaker
<p class="copyright">Mike Stewart/AP</p>
<p>Amazon lost hundreds of millions of dollars on its Alexa-powered device Echo before it was released in 2014, per <a href="https://www.wired.com/story/how-amazon-made-alexa-smarter/">Wired</a>.</p>
<p>Founder Jeff Bezos himself authorized the spending, met with the development team every other day and helped make product decisions.</p>
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<div class="slide">Sony PlayStation
<p class="copyright">Getty Images</p>
<p>The PlayStation is the world's most popular gaming console, with more than 80% market share. </p>
<p>Its maker, Sony, spends less than $5 billion on research and development, according to <a href="https://www.theguardian.com/technology/2022/oct/27/metas-shares-dip-is-proof-metaverse-plan-never-really-had-legs-facebook">analysis by the Guardian</a>, noting that budget covers not just its consoles, but also its rival to Meta's metaverse vision, PlayStation VR. And unlike Meta, Sony makes about a quarter of its revenue from its gaming division.</p>
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<div class="read-original">Read the original article on <a href="https://www.businessinsider.com/meta-lost-30-billion-on-metaverse-rivals-spent-far-less-2022-10">Business Insider</a></div><!-- /wp:html -->
Mark Zuckerberg as an avatar during Connect 2022
Meta
Meta has thrown $36 billion at the metaverse but plans to spend many billions more on the project.
Wary investors are calling for Meta to focus its effort on its profitable divisions.
Insider compiled a list of tech breakthroughs that cost far less than the metaverse push.
The metaverse may be the most expensive project in the history of tech.
Reality Labs houses the social-media giant’s VR and metaverse arms, and remains massively unprofitable, posting a $3.7 billion operating loss on revenue of $285 million in its most recent quarter, down by almost half compared with the previous year.
The social media giant reported its second consecutive quarter of lower revenues this week, prompting some anxious investors to urge Meta to refocus on its more reliable core businesses — ads and paid messaging.
However, Mark Zuckerberg is continuing to pour billions into his metaverse dream, arguing that it’s the future of computing.
The Meta CEO said the company would lose a “significant amount” of money over a three to five-year period at this year’s shareholder meeting.
While Zuckerberg may believe hemorrhaging cash is the path to the metaverse’s success and profitability, Insider has put together this list of highly successful tech innovations that cost just a fraction of how much Meta has already spent. These figures have not been adjusted for inflation.
Apple’s iPhone
Getty Images
The iPhone, released in 2007, was in development for years at Apple, with some of the brightest minds in engineering working on the device.
Reports vary as to how much Apple actually spent creating it. According to one anonymous senior executive, speaking in 2013, the iPhone cost $150 million to make.
That’s a low figure — tech publication The Information accounted for Apple’s research and development spend between 2002 and 2007, coming up with a figure of $3.4 billion.
Android
Reuters
Android, now the most popular mobile software in the world, started as a standalone startup and initially struggled to get any cash from investors. Insider previously reported that founder Andy Rubin received $10,000 and an undisclosed additional amount of seed funding from famed technologist Steve Perlman to keep the company going.
Google in 2005 scooped Android up for about $50 million. The first Android phone, the HTC Dream, launched in 2008. In that period, Google spent about $6.6 billion on research and development, annual filings show, though that would include areas beyond just Android OS. There are now more than 3 billion active Android devices, according to Google — so Zuckerberg is well behind on bang for his buck.
Self-driving cars
Getty Images
As yet, fully self-driving cars are not widely available, despite major tech firms and startups plowing billions of dollars into their development.
Again, estimates here vary. McKinsey estimated in 2021 that investors had spent around $100 billion since 2010 developing the technologies core to autonomous vehicles, such as radars and cameras and lidar. That outstrips Meta’s $36 billion on the metaverse, but is over a considerably longer period.
On a company basis, the estimates are more conservative, and come in cheaper than Meta’s fledgling VR platform.
The New York Times in 2021, citing Pitchbook, suggests specific firms will each spend up to $10 billion each getting autonomous vehicles on the road. The Information estimates that total investment by companies to bring autonomous cars to market comes in around $27 billion, including Waymo, Cruise, Motional, Zoox, and Argo AI.
It took just 20 months to go from conception to launch, according to Dean Takahashi, author of “Opening the Xbox: Inside Microsoft’s Plan to Unleash an Entertainment Revolution.”
The console is one of the best-selling games consoles of all time, and it has about 14% market share globally.
Amazon Echo speaker
Mike Stewart/AP
Amazon lost hundreds of millions of dollars on its Alexa-powered device Echo before it was released in 2014, per Wired.
Founder Jeff Bezos himself authorized the spending, met with the development team every other day and helped make product decisions.
Sony PlayStation
Getty Images
The PlayStation is the world’s most popular gaming console, with more than 80% market share.
Its maker, Sony, spends less than $5 billion on research and development, according to analysis by the Guardian, noting that budget covers not just its consoles, but also its rival to Meta’s metaverse vision, PlayStation VR. And unlike Meta, Sony makes about a quarter of its revenue from its gaming division.
