key takeaways
- An internal memo leaked from Meta reveals that the company is planning to raise prices on its virtual reality headsets.
- VR leaders Gabriel Aul and Ryan Cairns wrote in the memo that the meta would drive up device prices going forward.
- He argued that higher prices would allow Meta to build a “healthy” hardware business rather than relying on the success of any one headset.
Meta is planning to raise prices of its popular virtual reality (VR) headsets, according to a leaked internal memo obtained by business insider This week.
VR leaders Gabriel Aul and Ryan Cairns wrote in the memo that Meta must change its business model for long-term growth. He said the company would increase device prices “going forward,” without specifying by how much. It’s unclear whether the prices will increase for the current headset or for future models.
“Our devices will be more premium in price going forward, but we will have a healthy business and we will be free from any sense of being existential about the success of any single device,” Aull and Cairns wrote in a memo shared with employees last week.
Connected: The revenue of this meta product unexpectedly tripled during the last year
The Meta Quest 3 VR headset retails for $499.99, while its budget alternative retails for $299.99. The headsets are popular as Meta reports they are being sold more than one million Quest 3 device compared to last year. The previous models, Quest 1 and Quest 2, sold approx. 20 million units,
Meta remains the undisputed global leader in VR, even as the market has shrunk due to weak demand. according to Research Meta, released earlier this year by global intelligence firm Counterpoint, projects it to dominate the global VR headset market in 2024 with 77% market share. However, the global VR headset market is projected to decline by 12% in 2024, the third consecutive year of decline due to decreased consumer demand.
Aul and Cairns also wrote in the memo that Meta could slow the pace of new hardware releases and focus more on providing a “world-class” software experience that matches the quality of its devices. “Going forward, we may ship new hardware at a slower rate,” the memo reads.
Connected: Apple is reportedly developing AI smart glasses to compete with Meta and Google
Leaders sought to calm staff fears by assuring them that the department is focused on VR, even with budget cuts. A Bloomberg report Last week it was revealed that Meta planned to cut the budget of Reality Labs, the section in charge of Meta’s VR hardware and AI glasses, by up to 30%. lost division $73 billion From the beginning of 2021. Substantial cuts could mean layoffs as early as January, according to Bloomberg’s sources.
“We are committed to VR for the long term so we need to align our business model and roadmap with a vision that will make it possible,” Aull and Cairns wrote in the memo.
meta stock is more than 8% year to date. The company that operates it largest social media platform It is given importance based on the number of users in the world including Facebook, Instagram and WhatsApp. $1.6 trillion,
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key takeaways
- An internal memo leaked from Meta reveals that the company is planning to raise prices on its virtual reality headsets.
- VR leaders Gabriel Aul and Ryan Cairns wrote in the memo that the meta would drive up device prices going forward.
- He argued that higher prices would allow Meta to build a “healthy” hardware business rather than relying on the success of any one headset.
Meta is planning to raise prices of its popular virtual reality (VR) headsets, according to a leaked internal memo obtained by business insider This week.
VR leaders Gabriel Aul and Ryan Cairns wrote in the memo that Meta must change its business model for long-term growth. He said the company would increase device prices “going forward,” without specifying by how much. It’s unclear whether the prices will increase for the current headset or for future models.
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