Day: December 18, 2022

A prominent video game creator who helped lead Facebook’s expansion into virtual reality has resigned from the social networking service’s corporate parent after becoming disillusioned with the way the technology is being managed.

John Carmack cut his ties with Meta Platforms, a holding company created last year by Facebook founder Mark Zuckerberg, in a Friday letter that vented his frustration as he stepped down as an executive consultant in virtual reality.

“There is no way to sugar coat this; I think our organization is operating at half the effectiveness that would make me happy,” Carmack wrote in the letter, which he shared on Facebook. “”Some may scoff and contend we are doing just fine, but others will laugh and say, ‘Half? Ha! I’m at quarter efficiency!'”

In response to an inquiry about Carmack’s resignation and remarks, Meta on Saturday directed The Associated Press to a tweet from its chief technology officer and head of its reality labs, Andrew Bosworth. “”It is impossible to overstate the impact you’ve had on our work and the industry as a whole,” Bosworth wrote in his grateful tweet addressed to Carmack.

Carmack’s departure comes at a time that Zuckerberg, Meta’s CEO, has been battling widespread perceptions that he has been wasting billions of dollars trying to establish the Menlo Park, California, company in the “metaverse” — an artificial world filled with avatars of real people.

While the metaverse losses have been mounting, Facebook and affiliated services such as Instagram have been suffering a downturn in advertising that brings in most of the company’s revenue. The decline has been brought on by a combination of recession fears, tougher competition from other social networking services such as TikTok and privacy controls on Apple’s iPhone that have made it tougher to track people’s interests to help sell ads.

Those challenges have caused Meta’s stock to lose nearly two-thirds of its value so far this year, wiping out about $575 billion in shareholder wealth.

Although Carmack had only been working part time at Meta, the dismay that he expressed seems likely to amplify the questions looming over Zuckerberg’s efforts to become as dominant in virtual reality as Facebook has been in social networking since he started the service nearly 20 years ago while attending Harvard University.

Zuckerberg began to explore virtual reality in earnest in 2014 with Facebook’s $2 billion purchase of headset maker Oculus. At the time, Carmack was Oculus’ chief technology officer and then joined Facebook after the deal closed. Before joining Oculus, Carmack was best known as the co-creator of the video game Doom.

Federal regulators are now trying to limit Zuckerberg’s sway in virtual reality by preventing his attempt to buy Within Unlimited, which makes a fitness app designed for the metaverse.

Carmack testified earlier this week in a trial pitting the Federal Trade Commission against Meta over the fate of the deal. Zuckerberg is expected to testify at some point in the trial, which is scheduled to resume Monday in San Jose, California.

Despite his frustration with the way things have been going at Meta, Carmack praised its latest virtual reality headset, the Quest 2, in his resignation letter. He described the headset as “almost exactly what I wanted to see from the beginning” of his Oculus tenure.

“It is successful, and successful products make the world a better place,” Carmack said of the Quest 2. “It all could have happened a bit faster and been going better if different decisions had been made, but we built something pretty close to The Right Thing.”

But Carmack ended his letter with this entreaty: “Maybe it actually is possible to get there by just plowing ahead with current practices, but there is plenty of room for improvement. Make better decisions and fill your products with ‘Give a Damn!'” 
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Taiwan’s government said on Saturday it would fine Foxconn, the world’s largest contract electronics maker, for an unauthorized investment in a Chinese chip maker even after the Taiwanese firm said it would be selling the stake.

Taiwan has turned a wary eye on China’s ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology.

Foxconn, a major Apple Inc. supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup.

Late Friday, Foxconn said in a filing to the Taipei stock exchange its subsidiary in China had agreed to sell its entire equity stake in Tsinghua Unigroup.

Taiwan’s Economy Ministry said in response that its investment commission, which has to approve all foreign investments, will ask Foxconn on Monday for a “complete explanation” about the investment. 

“As for the fact that the investment was not declared beforehand, the amount will still be calculated in accordance with the formula and the penalty will be imposed in accordance with the law,” it said, without giving details. 

Foxconn did not immediately respond to a request for comment. 

People familiar with the matter have previously told Reuters that Foxconn did not seek approval from the Taiwan government before the investment was made and authorities believe it violated a law governing self-ruled Taiwan’s relations with China, which claims the island as its own. 

In a statement on Saturday before the economy ministry’s, Foxconn said as the year-end approached the original investment had “remained unfinalized.” 

Foxconn said that Xingwei, 99% controlled by its China-listed unit Foxconn Industrial Internet Co Ltd., had agreed to sell its holdings for at least $772 million to a Chinese company called Yantai Haixiu. 

Xingwei controls a 48.9% stake in a different entity that holds a 20% stake in the vehicle owning all of Unigroup. 

“In order to avoid uncertainties from further delays or impact to investment planning and the flexible deployment of capital, the Xingwei Fund will transfer its entire holding in Shengyue Guangzhou to Yantai Haixiu,” it said. “After the transfer is completed, FII will no longer indirectly hold any equity in Tsinghua Unigroup.” 

Tsinghua Unigroup did not respond to a request for comment. 

Taiwanese law states the government can prohibit investment in China “based on the consideration of national security and industry development.” Violators of the law could be fined repeatedly until corrections are made. 

Foxconn, formally called Hon Hai Precision Industry Co. Ltd., is keen to make auto chips, in particular, as it expands into the electric vehicle market. 

The company has been seeking to acquire chip plants globally as a worldwide chip shortage rattles producers of goods from cars to electronics. 

Taipei prohibits companies from building their most advanced foundries in China to ensure they do not site their best technology offshore. 

 
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