Facebook Parent Will Take A 47.5% Cut For Virtual Sales In Metaverse: Report

Facebook Parent Will Take A 47.5% Cut For Virtual Sales In Metaverse: Report

Mark Zuckerberg-led Meta FB will reportedly charge creators in its metaverse a 47.5% fee for all sales.

What Happened: According to a report from Insider on Tuesday, Meta will charge a 30% fee for sales made on its virtual reality system Meta Quest and another 25% sales fee for sales made through its Horizon Worlds metaverse.

Insider estimated that Meta’s cut will be 47.5% of the creator’s sale price, leaving the seller with 52.5%.

These estimates were later confirmed by a Meta spokesperson who told Insider that "If a creator sells an item for $1.00, then the Meta Quest Store fee would be $0.30 and the Horizon Platform fee would be $0.17 (25% of the remainder), leaving $0.53 for the Creator before any applicable taxes.”

See Also: Mark Zuckerberg Confirms NFTs Are Coming Soon To Instagram

Over time, Meta plans to expand Horizon Worlds to more platforms and expects them to charge their own fee, according to the report.

“The Horizon Worlds fee which is 25% of the remainder would be applied after any relevant hardware platform fee has been applied," the spokesperson was quoted as saying.

The sales fee imposed likely applies to non-fungible tokens (NFTs) sales on the platform as well, seeing as they fit the description of virtual assets in Meta’s virtual reality.

Some industry watchers argued Meta would price itself out of the market with such a move. Others pointed out that users were still willing to mint and sell NFTs despite Ethereum’s ETH/USD high gas fees relative to the price of the asset.

Price Action: According to data from Benzinga Pro, Meta shares closed 1.07% lower on Tuesday at a price of$214.14.

Photo courtesy: Anthony Quintano on Flickr

Posted In: Horizon WorldsMark ZuckerbergMeta QuestmetaverseCryptocurrencyNewsMarkets

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