Meta, née Facebook, could also be one of the crucial influential and impressive corporations on the planet, however that doesn’t imply it’s resistant to broader financial woes. On the identical day a collection of reports tales revealed the extent of Meta’s current belt-tightening, the corporate mentioned it was elevating the costs of its Quest VR headsets.
It’s a noteworthy replace in an business that sometimes sees the costs of devices drop as know-how advances. The next value level on one of many world’s hottest VR headsets additionally creates one other potential barrier in Meta’s quest to get extra customers into digital actuality.
Starting in August, the 2 obtainable configurations of Meta Quest 2 VR headsets will each go up in value by $100. The 128-gigabyte mannequin will price $400, and the model with 256 GB of storage will price $500. A free obtain of the favored Beat Saber sport, sometimes $30, will ship with the headsets till the tip of the 12 months. This nudges the Meta Quest 2 headset nearer to the worth of the $549 HP Reverb G2 and the HTC Vive Pro, which begins at $599 for a headset solely (sans hand controllers).
Meta mentioned, via a spokesperson, that it has invested billions of {dollars} within the VR ecosystem and that the corporate is “adjusting the price of our Meta Quest 2 headsets to enable us to continue investing in ways that will keep driving this increasingly competitive industry forward for consumers and developers alike.”
The Meta Quest’s value change indicators a rethinking of the corporate’s metaverse technique because it—and different tech corporations—modify to adjustments within the advert market and brace for a doable recession. Meta founder and chief government Mark Zuckerberg has made it clear that he considers VR to be a long-term funding. Last 12 months, Meta mentioned it plans to speculate $10 billion in its metaverse efforts. Since then, the unit has bled cash. Meta spent greater than $10 billion on VR in 2021 alone, and in its first-quarter 2022 outcomes, it reported a lack of almost $3 billion for its metaverse division.
A researcher at IDC, Francisco Jeronimo, shared via Twitter last month that Meta has offered almost 15 million models of the Quest 2 because it launched in 2020, and that the corporate has managed to seize an overwhelmingly giant share of the VR market. But its dominance may not final eternally. While VR shipments are forecast to develop this 12 months, with doubtlessly as many as 14 million models shipped in 2022 alone, anticipated headsets from ByteDance, Sony, and Apple might put stress on Meta, IDC analysts warn.
But within the meantime, a $100 value hike on Quest 2 is unlikely to meaningfully enhance margins for Meta. It may simply imply the corporate loses barely much less cash on its metaverse push, because it continues to pitch its imaginative and prescient of our computing future.
“Most people expect Meta to take a loss on VR, and maybe break even at some point,” says Anshel Sag, principal analyst at Moor Insights & Strategy. “The problem with this price increase is that usually people expect, when a product is out this long, that it will get a price cut, not an increase. That’s the most jarring part of this. It bucks the usual consumer electronics trend.” The firm should need to supply discounted variations of Meta Quest 2 across the holidays, he provides, however the “discounted” costs might now align with the product’s unique pricing.
