Meta Platforms has reduced the price of its virtual reality headsets in the hopes of increasing demand for its VR hardware, as its bold bets on the metaverse have failed to make a significant impact. Its flagship Meta Quest Pro will cost $999, down 33% from its launch price of $1,499, and the Quest 2 256 GB version will cost $429, down from $499, CEO Mark Zuckerberg announced on Friday via Instagram. Lower Quest 2 sales were cited as the reason for a 17% drop in fourth-quarter revenue at the company’s Reality Labs unit, which includes VR-related offerings.
Last year, the division lost $13.7 billion, and it is expected to lose more than $10 billion by 2021. Investors are criticizing Meta for pouring money into the metaverse, which has not yielded the expected results. Late last year, the company released Quest Pro, positioning it as its most advanced VR headset with the ability to expand use-cases. Quest Pro was aimed at designers, architects, and other creative professionals, with its outward-facing cameras that capture 3D livestreams of the physical environment and allow novelties such as the ability to hang virtual paintings on a real-world wall.
Meta has recently softened its stance on the metaverse and is focusing on cost-cutting measures. The company declared 2023 the “Year of Efficiency,” and it plans to cut billions of dollars from its spending this year. While VR headsets have recently gained more advanced capabilities, adoption outside of the gaming community has been slow. Tencent, the world’s largest video game publisher, shelved plans to venture into VR hardware last month, though it is in talks to distribute the Meta Quest line of products in China.
ABOUT VR HEADSET
A head-mounted device that completely covers the eyes to provide an immersive 3D experience. VR headsets, also known as “VR goggles,” can be completely self-contained, such as the Meta Quest or HTC Vive. They are expensive and must be connected to a powerful computer to handle the animation. VR headsets replace the user’s natural environment with virtual reality content, such as a movie, a game, or a pre-recorded 360-degree VR environment that allows the user to turn and look around as if they were in the real world.
Oculus Rift, Samsung Gear VR, HTC Vive, Google Daydream View, and Google Cardboard are some other notable VR headsets. These headsets block out the outside world and provide video to each eye, allowing for depth perception.
