Key Takeaways
- A leaked internal memo from Meta reveals that the company plans to increase prices on its virtual reality headsets.
- VR leaders Gabriel Aul and Ryan Cairns wrote in the memo that Meta will raise device prices going forward.
- They argued that higher prices would allow Meta to build a “healthier” hardware business, rather than relying on the success of any single headset.
Meta is planning to increase prices for 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 has to change its business model for long-term growth. They said that the company will raise device prices “going forward” without specifying exactly how much prices will increase. It’s unclear if prices will go up for current headsets or for future models.
“Our devices will be more premium in price going forward, but we’ll have a healthier business to anchor on and free ourselves from feeling existential about any singular device’s success,” Aul and Cairns wrote in the memo, which they shared with staff last week.
Related: This Meta Product Unexpectedly Tripled in Revenue Over the Past Year
The Meta Quest 3 VR headset retails for $499.99, while its budget option retails at $299.99. The headsets are popular, with reports that Meta sold over one million Quest 3 devices as of last year. The previous models, the Quest 1 and Quest 2, sold nearly 20 million units.
Meta also remains the undisputed global leader in VR, even as the market itself shrinks due to weak demand. According to research released earlier this year from global intelligence firm Counterpoint, Meta dominated the global VR headset market in 2024, with a market share of 77%. However, the global VR headset market fell 12% in 2024, marking the third straight year of declines due to diminished consumer demand.
Aul and Cairns also wrote in the memo that Meta may slow the pace of new hardware releases and focus more on delivering “world-class” software experiences that match the quality of its devices. “We [may] ship new hardware at a slower cadence going forward,” the memo read.
Related: Apple Is Reportedly Developing AI Smart Glasses to Compete with Meta and Google
The leaders also sought to soothe staff fears by reassuring them that the division remains focused on VR, even in the face of budget cuts. A Bloomberg report last week revealed that Meta plans to cut the budget of Reality Labs, the section in charge of Meta’s VR hardware and AI glasses, by up to 30%. The division has lost $73 billion since the start of 2021. Substantial cuts would likely mean layoffs as early as January, according to Bloomberg’s sources.
“We’re committed to VR for the long haul so we need to align our business model and roadmap to an approach that will make this possible,” Aul and Cairns wrote in the memo.
Meta stock is up over 8% year-to-date. The company, which operates the largest social media platforms in the world by number of users, including Facebook, Instagram and WhatsApp, is valued at $1.6 trillion.
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Key Takeaways
- A leaked internal memo from Meta reveals that the company plans to increase prices on its virtual reality headsets.
- VR leaders Gabriel Aul and Ryan Cairns wrote in the memo that Meta will raise device prices going forward.
- They argued that higher prices would allow Meta to build a “healthier” hardware business, rather than relying on the success of any single headset.
Meta is planning to increase prices for 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 has to change its business model for long-term growth. They said that the company will raise device prices “going forward” without specifying exactly how much prices will increase. It’s unclear if prices will go up for current headsets or for future models.
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