Meta’s revenue shrank for the first time in its history

Facebook parent company Meta has just reported its earnings for the second quarter of 2022, and it was another quarter of shrinking profits. Total revenue of $28.8 billion was only down one percent compared to Q2 one year ago, but net income dropped 36 percent to $6.7 billion. Making almost $7 billion in profit is not a bad quarter for anyone, but the size of the decline compared to a year ago is pretty significant. And, according to the Wall Street Journal, this is the first-ever drop in revenue for Meta / Facebook — so even though we’re only talking one percent, it’s still noteworthy.

Revenue from advertising and Meta’s “family of apps” was essentially flat year-over-year, and Reality Labs (home to hardware like the Meta Quest and other metaverse-related initiatives) actually grew 48 percent year-over-year to $452 million. But Reality Labs accounted for a $2.8 billion loss this quarter, a 15 percent larger loss than Q2 one year ago. At this rate, it seems likely that Reality Labs will lose Meta more than the $10 billion it cost the company in 2021. Indeed, the company said it expects Reality Labs revenue to be lower in the third quarter.

This comes the same day that the FTC announced it was seeking to block Meta’s acquisition of Supernatural VR workout app maker Within, a proposed sale that was announced last year. “Instead of competing on the merits, Meta is trying to buy its way to the top,” John Newman, deputy director of the FTC’s Bureau of Competition, said in a statement.

In June, Meta said that it had 2.88 billion daily active users in its family of apps (which includes Facebook, Instagram, WhatsApp and Messenger) and 3.65 billion monthly active users, both of which are up four percent compared to a year ago. Facebook-specific growth was smaller, though — average daily and monthly users only increased three percent and one percent, respectively. 

Buried in today’s press release is a somewhat unusual leadership change announcement as well. As of November 1st, the company will welcome its first Chief Strategy Officer, David Wehner, who is currently Meta’s Chief Financial Officer. VP of Finance Susan Li will be promoted to the CFO position when this change goes into effect. As CSO, Wehner will “oversee the company’s strategy and corporate development,” a presumably broader scope of responsibilities compared to his current role.

On today’s call with investors, CEO Mark Zuckerberg said that about 15 percent of the content that people see on Facebook and Instagram are AI-driven “recommendation” posts, and he said that he expects that to double over the next year. So if you’re already frustrated by the drastic changes that Meta is making to Facebook and Instagram, things aren’t going to go backwards any time soon. 

FTC moves to block Meta’s purchase of ‘Supernatural’ VR workout app maker Within

The Federal Trade Commission has filed an antitrust suit against Meta in a bid to block it from buying Within Unlimited, the maker of the virtual reality workout app Supernatural. The agency accused the company and its CEO Mark Zuckerberg of “planning to expand Meta’s virtual reality empire with this attempt to illegally acquire a dedicated fitness app that proves the value of virtual reality to users.”

The FTC claimed that Meta is “already a key player” at every level of the VR ecosystem. It said the company has the top-selling VR device (Meta Quest 2), a leading VR app store, “seven of the most successful developers and one of the best-selling apps of all time.” The latter is likely referring to Beat Saber. Meta bought the maker of that rhythm game, Beat Games, in 2019.

“Instead of competing on the merits, Meta is trying to buy its way to the top,” John Newman, deputy director of the FTC’s Bureau of Competition, said in a statement. “Meta already owns a best-selling virtual reality fitness app and it had the capabilities to compete even more closely with Within’s popular Supernatural app. But Meta chose to buy market position instead of earning it on the merits. This is an illegal acquisition and we will pursue all appropriate relief.”

Meta announced its plan to buy Within last October. It was reported in December that the FTC was looking into the $400 million deal. Meta, of course, got into the VR market in the first place when it bought Oculus in 2014.

The FTC argues in the complaint that Meta has the resources and “reasonable probability” of entering the VR fitness market by building its own app. That approach, the agency claims, would “increase consumer choice, increase innovation, spur additional competition to attract the best employees, and yield other competitive benefits.” Instead, if it were to buy Within, the FTC claims Meta would limit “future innovation and competitive rivalry” and says “that lessening of competition violates the antitrust laws.”

“The FTC’s case is based on ideology and speculation, not evidence. The idea that this acquisition would lead to anticompetitive outcomes in a dynamic space with as much entry and growth as online and connected fitness is simply not credible,” a Meta spokesperson told Engadget in a statement. “By attacking this deal in a 3-2 vote, the FTC is sending a chilling message to anyone who wishes to innovate in VR. We are confident that our acquisition of Within will be good for people, developers and the VR space.” 

The move will come as another blow to Meta’s aim to become the leading metaverse player. The company has plowed billions into the effort, though in recent months it has dialed back some of its ambitions by cutting costs and reportedly shelving plans for some devices that were supposed to hook into its metaverse. This week, the company announced that it will increase the price of a Meta Quest 2 headset by $100 as of August 1st. News of the FTC’s move to block the Within acquisition comes on the same day that Meta will report its earnings for the second quarter of 2022.

Update 7/27 7:41PM ET: Meta has since published a blog post called “The FTC’s Attempt to Block Meta’s Acquisition of Within Is Wrong on the Facts and the Law.” You can probably guess the company’s stance on the matter from that title alone. 

Latest iOS 16 beta limits the ability to edit and delete messages

Apple is toning down iOS 16’s vaunted iMessage edit and unsend features. The company has released fourth developer betas of iOS 16, iPadOS 16 and macOS Ventura that limit you to five edits for a given message within the available 15 minutes, and shrink the unsend window from 15 minutes to just two. You can also tap a message to see its edit history — previously, you would only see a notice that it had been edited.

The company didn’t explain the decision. We’ve asked Apple if it can share its reasoning. However, AppleInsideroutlined the potentials for abuse with the previous approach. Someone could edit a message to make it appear that you agreed to something. They could alternately harass you by sending messages that last long enough to be noticed, but disappear before you can preserve the evidence.

You can always prevent edits and unsends by disabling iMessage. That forces conversations to SMS texts, where those features aren’t available. Apple’s moves won’t completely prevent harassment, but might encourage you to leave iMessage on without fear that someone could easily twist your conversations.

Senate passes bill to boost US chip manufacturing

The US government just crossed a key milestone in its bid to improve domestic chip production and compete with rivals like China. CNBCreports the Senate has passed the CHIPS and Science Act, a bill to fund and incentivize American semiconductor manufacturing, in a 64-to-33 vote. The measure includes over $52 billion for US firms making chips, additional funding for further technology development and tax credits to spur manufacturing investments.

The Act, also known as “CHIPS-plus,” is a scaled-back version of bills previously circulating through Congress. Those efforts received opposition across the political spectrum. Republicans objected to earlier measures with accusations that Democrats were pushing a partisan reconciliation bill that would include climate, medicine and tax considerations. There were also concerns funding might inadvertently reach China. Independent Senator Bernie Sanders, meanwhile, was concered that a past variant was a “blank check” to already-profitable chip producers. 

The House will still have to pass and help reconcile counterpart legislation before President Biden can sign the bill into law. That’s considered very likely, however, as the Senate has cleared a 60-vote filibuster threshold. The House is expected to pass its version when Democrats only need to wield their majority to succeed.

The expected law is unlikely to have an immediate effect when new factories take years to complete, and upgrades aren’t necessarily quicker. It won’t address near-term chip shortages. Even so, CHIPS could play an important role in American tech manufacturing. On top of reducing the chances of future shortages, it could reduce the dependence on Taiwan and other semiconductor hubs threatened by countries like China. While there are no guarantees the Act will lead to more jobs and lower prices, it might help the US compete in an increasingly fierce market.

Researchers created low-cost, 3D-printed plasma sensors for satellites

Doing just about anything in space is expensive, but a group of MIT scientists has found a way to bring down some costs — and perhaps help accelerate climate change research. The team has developed what MIT said are the first 3D-printed plasma sensors for use in satellites. The sensors can detect the chemical composition and distribution of ion energy in plasma in the upper atmosphere.

The researchers used a printable glass-ceramic material called Vitrolite to make the sensors, also known as retarding potential analyzers (RPAs). It’s said to be more durable than other materials that are commonly used in sensors, such as thin-film coatings and silicon. Using a 3D-printing method, the team created sensors with complex shapes that MIT said can “withstand the wide temperature swings a spacecraft would encounter in lower Earth orbit.” Vitrolite can handle temperatures of up to 800 degrees Celsius without melting, while polymers used in other RPAs start to break down at 400 degrees Celsius.

That means these sensors could be a good fit for low-cost cubesats. When they’re used on orbiting satellites, RPAs can carry out chemical analysis and measure energy, which can help with weather predictions and monitoring climate change.

The scientists claim the sensors perform as well as similar devices that use semiconductors and are made in a clean room. Assembling RPAs in a clean room is an expensive process that can take several weeks. Making them with 3D printers and laser cutting takes just days and costs “tens of dollars.”

Luis Fernando Velásquez-García, a principal scientist in MIT’s Microsystems Technology Laboratories and senior author of a paper on the sensors, already sees room for improvement. He wants to reduce the thickness of the layers or pixel size of the glass-ceramic vat polymerization in the hope of creating more complex and precise devices. There’s also the belief that “fully additively manufacturing the sensors would make them compatible with in-space manufacturing.”

NASA has been working on space-based 3D printing for several years. It has printed wrenches on the International Space Station. As early as 2024, NASA plans to launch a demonstration spacecraft that can build, assemble and deploy a surrogate solar array to learn how the approach can benefit the Artemis program.

PlayStation Plus will offer eight Yakuza games this year

Sony is bringing eight Yakuza games to PlayStation Plus this year as it looks to build out the revamped service’s library with notable third-party titles. Starting on August 2nd, subscribers on all three tiers will be able to snag Yakuza: Like a Dragon on PS4 and PS5. The other two games hitting the base Essential tier as part of August’s solid lineup are Tony Hawk’s Pro Skater 1+2 (PS4 and PS5) and Little Nightmares (PS4).

At least for now, Yakuza: Like a Dragon will be the only Yakuza game that will hit the Essential tier. Yakuza 0, Yakuza Kiwami and Yakuza Kiwami 2will join the Extra and Premium versions of the service in mid-August. Later this year, Yakuza 3 Remastered, Yakuza 4 Remastered and Yakuza 5 Remastered will land on the Premium tier. Yakuza 6: The Song of Life will hit Extra and Premium in the coming months as well.

Unlike Microsoft does with Game Pass, Sony isn’t putting its own blockbuster games out on PlayStation Plus on the day they’re released. It has to find other ways to make the service attractive to lure in new users and keep existing members on board. Yakuza is a popular series and those who want to revisit the earlier games (or check them out for the first time) might be tempted to sign up to PS Plus or keep their subscription going to play through them all.

White House launches a website to help people cope with extreme heat

President Biden’s administration is backing up its funding for heat disaster prevention with a website to keep people informed. Fast Companynotes the White House has launched a Heat.gov website to help the public and authorities understand the dangers of extreme heat and reduce the health risks. The 11-agency collaboration offers maps for current and expected temperature spikes across the US, prevention guidance and data-driven tools.

Among the resources are a CDC-made Heat & Health Tracker that shows both historic and predicted trends. You’ll see how much hotter your area has become over the decades, for instance. Other tools help you understand the effects of extreme heat on vulnerable groups, or aid communities seeking funds for city heat maps. The Biden administration has already been using the data to guide $50 billion in federal spending, White House climate advisor David Hayes said.

The Heat.gov debut comes just as the US (and many other parts of the world) grapples with particularly severe heat waves, and is part of a larger strategy to deal with the realities of climate change. Temperatures are expected to keep climbing, and this could help planners mitigate the dangers. In his most recent initiatives, President Biden sent $2.3 billion to FEMA for climate-related disaster “resilience,” expanded low-income energy help to include efficient air conditioning and proposed wind farms in the Gulf of Mexico.

The website is also consolation of sorts. The Supreme Court recently curbed the Environmental Protection Agency’s ability to enforce the Clean Air Act. West Virginia Senator Joe Manchin also thwarted efforts to include climate change measures in a federal spending bill. While Heat.gov won’t compensate for those losses, it potentially draws more attention to climate issues.

How to stream Lollapalooza on Hulu this weekend

With Lollapalooza returning to Chicago’s Grant Park this weekend, Hulu subscribers can watch the festival from the comfort of their homes. All you need is a standard or No Adds package – no Live TV plan required.

The livestream will begin at 3PM ET on Thursday, July 28th. Metallica, fresh from their recent Stranger Things bump, headline Thursday, with a set that starts at 11:15PM ET. Other highlights that day include Swedish singer-songwriter Tove Lo and the Wombats at 6:45PM ET and 6:15PM ET respectively. 

Starting Friday, Hulu will begin streaming performances across two channels. On Channel 1, you can catch Tinashe at 4:45PM ET and Machine Gun Kelly at 9:30PM ET, while Channel 2 will feature a performance from Canadian electronic duo Bob Moses at 10PM ET. Note also that from Friday onwards the music starts at 2PM ET. 

On Saturday, EDM fans are spoiled for choice, with Kygo and Kaskade separately headlining Channels 1 and 2 at 11:00PM ET. Dashboard Confessional is also playing a set at 5:45PM ET on Channel 1. On Sunday, Lollapalooza is doing things slightly differently. Saturday’s headliners – Porno for Pyros, J. Hope and Greenday – won’t be the last musicians to play that day. They’ll go on stage earlier in the evening – at 7:45PM ET, 10PM ET and 9:15PM ET, respectively. Presumably, that’s so that anyone watching at home can get to bed at a reasonable time before the start of the work week.