What does Facebook changing to Meta mean?

Facebook’s announcement that it would change its name to Meta signals a major strategic shift for the company toward building the “metaverse.” This does not change the Facebook app or brand, but reflects the company’s new focus on developing immersive virtual and augmented reality technologies.

What is the metaverse?

The “metaverse” refers to a vision of the future internet as a vast network of virtual 3D worlds and spaces that people can explore and interact in. It builds on concepts from science fiction and existing technologies like virtual reality and augmented reality. In the metaverse vision, people will work, play, learn, shop and socialize together in virtual environments through digital avatars.

Facebook CEO Mark Zuckerberg has described the metaverse as “an embodied internet, where instead of just viewing content – you are in it.” The metaverse may incorporate elements like:

• Persistent virtual worlds that continue to exist and evolve even when users are not logged in.
• Avatars and digital identities that people create to represent themselves.
• Augmented and virtual reality headsets that make the virtual worlds immersive.
• The ability to digitally own, create, and trade virtual goods and services.
• Cryptocurrencies and blockchain technology to enable virtual economies.

The metaverse builds on popular virtual worlds like Fortnite and Roblox, but aims to create a unified virtual space across different platforms and apps. Interoperability between worlds will be a key challenge.

Why is Facebook focusing on the metaverse?

Facebook likely sees the metaverse as the next stage in social connection and communication online. As people spend more time participating in virtual worlds for work, shopping, entertainment, and socializing, Facebook wants to make its services central to that experience.

Facebook may also view the metaverse as the solution to its brand reputation challenges. By changing its name to Meta, it can reposition itself around an optimistic vision of the future rather than its troubled past.

Other key reasons Facebook is investing in the metaverse:

• Competitive threat from companies also building virtual worlds like Epic Games and Roblox.
• Extend its advertising business into new immersive environments.
• Leverage its expertise in social networking and communities.
• Capitalize on Apple’s restrictions around data tracking on iOS.
• Attract and retain talented technical workers.

How will Facebook build the metaverse?

Facebook plans to invest heavily in technologies needed to build the metaverse, including virtual and augmented reality hardware, software, content creation tools, and cloud infrastructure. Key parts of this strategy include:

• VR/AR headsets – Facebook aims to release improved versions of its Oculus VR headsets at lower price points to achieve mass adoption.
• Horizon VR world – Expanding its social VR environment Horizon World where users can explore, play games, and interact as avatars.
• Workplace tools – Creating productivity and collaboration apps for workers in VR, such as its Horizon Workrooms app.
• Content studios – Investing in VR content development through its Facebook Reality Labs studio.
• Developer tools – Releasing software tools like Presence Platform for developers to build metaverse apps.
• Hardware infrastructure – Designing customized infrastructure hardware like computer chips and network gear to power the metaverse.
• New interaction models – Developing more natural ways for people to interface with the virtual world, using technologies like neural sensors, AR glasses, and motion tracking.

Facebook also plans to continue acquiring key startups in the VR/AR space to expand its capabilities.

How will the metaverse make money for Facebook?

As Facebook’s primary revenue source today, advertising will likely play a major role in monetizing the metaverse. Ads could become more immersive and integrated into the virtual worlds. Other potential revenue streams include:

• Virtual commerce – Taking a cut of sales of digital assets, clothing, art, music, and more bought for people’s virtual avatars.
• App store fees – Charging developers a percentage of sales for metaverse apps distributed through a Meta app store.
• Subscriptions and fees – Charging for premium features or content in Meta’s metaverse platforms.
• Hardware sales – Earning profits from sales of Meta’s VR/AR headsets and other devices.
• Enterprise services – Offering businesses paid tools, services, and solutions tailored to the metaverse, like training and collaboration apps.
• Live events – Hosting paid virtual live events like concerts, conferences, and tournaments.

Monetization models are still emerging and will likely evolve over time as the metaverse grows. But Meta’s massive user base gives it a head start at scale.

What could go wrong with Facebook’s metaverse bet?

Though the potential is exciting, Facebook also faces significant obstacles and risks in bringing its metaverse vision to life:

• The technology could take a decade or more to mature – AR/VR hardware, mobile bandwidth, and other capabilities need major advances.
• Mainstream consumer adoption is far from guaranteed.
• Building a mass-market metaverse could cost tens or hundreds of billions in investment.
• Competition from other major tech companies could create rival platform ecosystems.
• Technical challenges around interoperability and standardization.
• Regulatory scrutiny around privacy, content moderation, and monopolization.
• Potential for toxic behavior, harassment, misinformation, and other problems as in today’s social networks.

Execution challenges are also considerable for such a complex long-term project spanning hardware, software, networking, media content, and more. If Meta fails to bring enough partners and developers on board, its version of the metaverse could struggle to gain momentum.

Will Facebook change from Meta? How so?

The Facebook app itself will remain unchanged by the corporate name change to Meta. However, the shift signals a strategic reorientation for the company that could gradually change the services Facebook offers.

Over the next 5-10 years, users will likely see more Meta-branded apps and content focused on virtual reality, augmented reality, and connecting with others through digital avatars. Facebook the social media platform may begin to feel more like a component within a broader Meta metaverse experience spanning different devices and applications.

Some examples of how Facebook could change with Meta’s metaverse focus:

• The Facebook app evolves to be more metaverse-compatible, like allowing users to create avatars, browse virtual worlds, play immersive games, shop for digital goods, and interact in real-time in VR.
• Meta pushes Facebook users to link their 2D social media profiles to a persistent 3D metaverse identity.
• More emphasis on Facebook’s role as a discovery and networking platform for finding people and places in the metaverse.
• Facebook turns its focus toward building out its own metaverse ecosystem rather than trying to dominate the open web.
• Shift toward Facebook being one of many entry points into a broader Meta metaverse instead of competing head-on with rivals.

But Meta will tread cautiously to avoid disrupting Facebook’s core business during the risky transition. The social media platform’s advertising model still represents the bulk of its revenue.

How will this affect Facebook’s other apps and technologies?

Facebook’s apps like Instagram, WhatsApp, and Messenger will likely retain their branding and identity within Meta. However, these apps could also evolve and become more integrated parts of the broader metaverse experience over time.

For example, Meta could allow users to connect their 2D social media profiles from apps like Instagram to a central 3D avatar and seamlessly message friends across apps in augmented reality. Sharing live content to Instagram Stories from virtual reality could also become more common.

Some other potential impacts include:

• Tighter integration between messaging apps like WhatsApp and Messenger.
• Augmenting photos and videos on Instagram and Facebook with AR effects and objects.
• Letting Oculus users stream gameplay and interact with others via Facebook Live.
• Encouraging sharing of VR experiences from Oculus to Instagram and Facebook stories.
• Offering especially immersive social media advertising experiences via AR and VR.

Meta will likely try to entice users from its existing apps into its metaverse ecosystem. But it risks diluting the singular brands and experiences that made those apps successful if integration is too heavy-handed.

How does this affect Facebook’s business model and revenue sources?

Facebook makes nearly all its revenue from digital advertising. While Meta’s metaverse efforts aim to diversify revenue over time, advertising will continue funding these explorations into new technologies in the near future.

Bringing more users into virtual worlds provides additional opportunities for ad targeting based on avatar appearances, in-world behaviors, and adjacent virtual goods/services. But scaling metaverse advertising to the size of Facebook’s current ad business will be challenging.

If Meta succeeds, revenue could gradually shift to a mix of sources like virtual commerce fees, subscriptions for premium metaverse apps and content, in-world micropayments, and sales of VR/AR hardware. Still, the metaverse may never lead Meta to fully abandon the targeted ad model powering Facebook today.

Will users need a Facebook account for the metaverse?

Meta has indicated users will be able to access its metaverse experiences without needing a Facebook account. It aims to welcome users from any platform, not just Meta’s own apps.

However, Meta will likely offer benefits and tighter integration for users who do link their existing Facebook accounts. And it may entice more users to create Meta accounts that unify their identity across both Facebook and the metaverse.

Having unique digital identities and account systems for the metaverse is considered important for interoperability. So mandating Facebook accounts would go against metaverse principles. But Meta will certainly seek to make integration frictionless for its billions of existing users.

How quickly will this change happen?

Building the full metaverse as envisioned is an extremely ambitious long-term project that could take 10 to 15 years to materialize. But Meta has the resources and determination for steady progress on this timeline.

Users will begin seeing gradual changes signaling Meta’s metaverse direction like more AR effects, embeds of VR content, and avatar creation options. Horizon Worlds will continue evolving as Meta’s flagship social metaverse app.

More substantial changes will take longer, like adoption of AR glasses or VR becoming a mainstream computing platform. Expect a slow steady pace of change rather than overnight transformation into ready-player-one virtual worlds.

Could this “metaverse first” focus hurt Facebook’s current business?

Pursuing an extremely long-term vision like the metaverse carries risks of neglecting Facebook’s core business in the present. If too many resources get channeled into unproven future technologies, it could adversely impact the cash cow funding those ambitions.

Meta will need to balance three horizons simultaneously:

1. Sustaining growth for Facebook’s current business.
2. Expanding newer platforms like Instagram, WhatsApp, and Oculus.
3. Developing the more distant metaverse future.

Generating sufficient near-term profits and cash flow from Facebook’s ads business will be vital to fund massive metaverse investments for years before it materializes into a revenue source. Meta cannot afford to squander its lucrative social media core while chasing the next big thing.

Conclusion

Transitioning one of the world’s most valuable companies like Facebook into a metaverse-first entity represents a monumental challenge. Meta is betting heavily that virtual worlds will be integral to the next phase of the internet.

But the path ahead requires overcoming major technical hurdles, garnering developer support, winning over consumers, and building sustainable new business models. With patience and commitment, Meta has the resources to potentially make its grand vision a reality. But executing on this strategy shift while maintaining growth for Facebook’s core business will demand flawless execution.