Makers who create and sell digital assets in Meta’s Horizon Worlds virtual reality platform will earn quite a bit less than expected as the company plans to cut by up to 47.5 percent.
In a recent blog post, Facebook’s parent company announced it will enable select Horizon Worlds creators to sell virtual assets within their digital worlds. While this is good news for creators, Meta has not stated how much it will charge them to sell digital assets and possibly even NFTs on its platform.
According to a new report from CNBC, a company spokesperson confirmed to the news channel that it will require an overall cut of up to 47.5 percent on any transaction. This discount includes a 30 percent “hardware platform fee” for sales through the Meta Quest Store, although Horizon Worlds also charges a 17.5 percent fee.
So far, the response from creators to Meta’s high fees has been less than great, which could hurt the adoption of Horizon Worlds, which launched in the US and Canada last December but isn’t rolling out globally yet.
Virtual Assets vs In-App Purchases
Since the metaverse is still a relatively new idea and has yet to be fully implemented, CNBC and other news sources have compared the company’s fees for selling virtual assets in Horizon Worlds to the fees Apple charges app developers.
In the past, Meta CEO Mark Zuckerberg and other company executives have criticized the iPhone maker for charging developers a 30 percent fee for in-app purchases. Last November, Zuckerberg explained that the company would make it easier for developers to earn more for their work, saying:
“As we build for the metaverse, we are focused on unlocking opportunities for creators to monetize their work. The 30% fees Apple takes on transactions makes it harder to do that, so we’re updating our subscription product so creators can now earn more.”
Meanwhile, Google announced last year that it will lower its own 30 percent fee for digital purchases on the Play Store to 15 percent for the first $1 million in annual revenue, while Apple announced it would lower its fee to 15 percent for developers. who earn less than $1 m each year.
Meta needs to monetize the metaverse to make it work, but with fees as high as 47.5 percent, it can be difficult to convince developers to create content for Horizon Worlds. Still, the company could decide to cut its fees ahead of Horizon Worlds’ global rollout.