You did a great job of analyzing how their business works. The part that I still don’t understand is how they build their own kingdom and get away from the tax of Apple and Google. A VR headset App Store is so incredibly niche. It has no chance of capturing the mass market that uses the Meta apps. It could just be that Meta has no idea how to do this, but they certainly chose an approach that is not mainstream and they have not been able to develop a consumer device that has broad appeal. I’m curious if you have any ideas of how this plays out?
Meta has no clue how to do consumer hardware. VR happened to be aligned, so they’re betting on that as opposed to competing in an already commoditized space of consumer.
In the short-medium term, the bet isn’t consumer, it’s appealing to high pricing consumers (tech enthusiasts, people buying as a flex, and businesses where VR is a big boon).
They’re probably waiting for the pricier segment to carry till VR eventually becomes a commodity, or they find a better angle to switch to. The mportant t Thing to remember for a widely profitable company like Meta is that the cost of doing nothing is much much higher than the cost of sinking in a few billion into an investment like VR where you could still possibly gather some information could still make some movements and your investors aren't going to kill you alive for just bleeding money or sitting on money.
You did a great job of analyzing how their business works. The part that I still don’t understand is how they build their own kingdom and get away from the tax of Apple and Google. A VR headset App Store is so incredibly niche. It has no chance of capturing the mass market that uses the Meta apps. It could just be that Meta has no idea how to do this, but they certainly chose an approach that is not mainstream and they have not been able to develop a consumer device that has broad appeal. I’m curious if you have any ideas of how this plays out?
You’ve almost answered your own question here.
Meta has no clue how to do consumer hardware. VR happened to be aligned, so they’re betting on that as opposed to competing in an already commoditized space of consumer.
In the short-medium term, the bet isn’t consumer, it’s appealing to high pricing consumers (tech enthusiasts, people buying as a flex, and businesses where VR is a big boon).
They’re probably waiting for the pricier segment to carry till VR eventually becomes a commodity, or they find a better angle to switch to. The mportant t Thing to remember for a widely profitable company like Meta is that the cost of doing nothing is much much higher than the cost of sinking in a few billion into an investment like VR where you could still possibly gather some information could still make some movements and your investors aren't going to kill you alive for just bleeding money or sitting on money.