Meta Raises the Prices of Its Quest VR Headsets by $100

Meta, also known as Facebook, is one of the most influential and ambitious companies in the world. On the same day a series of news stories showed the extent of Meta's recent belt-tightening, the company said it was raising the prices of its headsets.

The industry typically sees the prices of gadgets drop as technology improves. Meta is trying to get more consumers into virtual reality with a higher price point on one of the headsets.

The price of the Meta Quest 2 headsets will go up in August. The price of the 128-gigabyte model will be $400, and the price of the 256-gigabyte model will be $500. The headsets for the Beat Saber game will be free until the end of the year. The Meta Quest 2 headset is closer to the price of the HP Reverb G2 and the Vive Pro than it is to the price of a headset only.

Meta said that it has invested billions of dollars in the virtual reality industry and that it is adjusting the price of its Meta Quest 2 headsets to enable it to continue investing in ways that will keep driving the industry forward for consumers and developers alike.

People expect a price cut when a product is out this long.

Anshel Sag is a strategist.

The price change shows a rethinking of the company's metaverse strategy as it adjusts to changes in the ad market and braces for a possible recession Mark has made it clear that he considers virtual reality to be a long term investment. The company said it would invest $10 billion in its metaverse efforts. The unit has been bleeding money since that time. In the first quarter of the year, Meta reported a loss of nearly $3 billion for its metaverse division.

According to Francisco Jeronimo, a researcher at the International Data Corporation, Meta has sold more than 15 million units of the Quest 2 since it was released in 2020. It may not last forever. The analysts warn that anticipated headsets from ByteDance, Sony, and Apple could put pressure on Meta.

A $100 price hike on Quest 2 is not likely to increase margins. The company may lose less money on its metaverse push as it pitches its vision of our computing future.

Anshel Sag, principal analyst at Moor Insights & Strategy, says that most people expect Meta to lose money on virtual reality. When a product is out this long, people expect it to get a price cut, not an increase. The most upsetting part of this is that. It's different from the usual consumer electronics trends. The company may still want to offer discounted versions of the game around the holidays, but the prices could now be in line with the original price.