According to Steam’s hardware survey, the Meta Quest 2 holds the title of the most popular VR headset worldwide, commanding a substantial 38 percent market share—over twice that of Valve’s Index HMD. In stark contrast, Meta’s newer Quest 3, despite its advancements, only accounts for 17 percent of the market. Why the significant gap?
The key factor is price.
The Quest 2 is the most budget-friendly standalone VR headset found at numerous retailers, including essential brick-and-mortar stores where customers can test the device firsthand. It also allows connectivity to gaming PCs via Steam, providing added functionality compared to PC-only headsets, despite using simpler technology.
Launched at $250 in 2020, the Quest 2 has been offered at various prices and bundles since its release. While not exactly an impulse purchase, its pricing is competitive with that of the Nintendo Switch.
On the other hand, the Quest 3 launched at a starting price of $500, positioning it more alongside high-end gaming consoles like the PlayStation 5 and Steam Deck. This pricing certainly contributes to its slower sales.
To combat this issue, Meta is set to release the Quest 3S on October 15th at a price of $300, making it more accessible and bringing it closer to the Quest 2’s price range. Although it doesn’t feature the sleek “pancake” lenses that helped make the Quest 3 thinner, it retains most of the essential components of that model.
These components include the Snapdragon XR2 processor, 8GB of RAM for standalone gaming, color pass-through cameras for augmented reality functionality, and improved motion controllers that eliminate the need for plastic halos.
Meta is discontinuing both the Quest 2, which has been sold alongside the Quest 3 for the past year, and the $1,000 Quest Pro. The Quest Pro was initially launched at $1,500 as a flagship model showcasing advanced VR technology, primarily targeted at industrial applications.
With the introduction of the Quest 3S and a price cut for the Quest 3, Meta seems focused on capturing the attention of cost-conscious consumers—a necessary strategy given the current market dynamics.
The Reality Labs division of Meta has been losing billions of dollars every quarter, heavily investing in a VR and AR future that remains elusive. Despite integrating with popular social media platforms and the pandemic creating ideal conditions for virtual spaces, both individual users and businesses have been hesitant to embrace Mark Zuckerberg’s metaverse vision. The concept of a VR landscape owned, monetized, and crypto-enhanced by Facebook is not widely appealing.
Nonetheless, VR and AR technologies are not failures. Companies like Apple, Samsung, Google, and Valve continue to invest in this space, albeit with a more measured approach. However, Meta’s financial resources are not limitless, and selling headsets is crucial for profitability and building a robust platform. Offering these headsets at more affordable prices is the essential first step, albeit one that has taken Meta an extra year and around $20 billion to acknowledge.