The Quest 2 price hike is a bad sign for the Metaverse

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In an unprecedented move, Meta has announced that it is raising the price of its normally affordable Quest 2 headset by $100 starting August 1. Although Meta claims that the price hike is meant to allow the company to invest more in VR in hopes of the VR industry further,” I remain skeptical of the plausibility of this result. . This move will not only hurt the wallets of VR fans, but also Meta’s goals, as it attempts to turn the Metaverse into a mainstream experience.

That’s bad news for proponents of the technology who are already struggling to get the idea across to users. From the time companies like Meta made it a buzzword, the Metaverse was met with a lot of skepticism. Meta’s aggressive marketing push has often proven to be underdeveloped and overconfident – especially since the concept has been around for literal decades via titles like second life or even Fortnite. Now pair this cocky deployment with the fact that Meta has been in hot water since his days on Facebook following multiple lawsuits over privacy issues.

The Metaverse was already off to a bad start with the company’s target audience; now it’s going to cost those skeptics more money to even get access to it with the Quest 2.

Growing Metaverse Concerns

The price hike seems fundamentally at odds with what Meta wants to achieve with VR. The company wants the Metaverse to be accessible to everyone through VR headsets, especially the Quest 2. Now the price of entry has dropped from $300-$400 to $400-$500, severely limiting who will be interested. (or even able ) by buying. $400-500 seems like a lot to pay to try out technology that really shouldn’t find its way through at least 2027 – especially since it was $100 cheaper.

With people already feeling uneasy about Meta’s ability to properly handle something as potentially invasive as the Metaverse, the extra $100 it will cost to get in there might just be the last straw. water for those who are already on the fence about it. Moreover, the price hike of Quest 2 has raised many questions regarding the price of future Meta hardware.

Nothing has been officially announced in terms of what other hardware Meta might eventually release that would be compatible with the Metaverse, but whether the company is willing to introduce such a drastic price increase for hardware that’s nearly two years old , nothing prevents it from doing something similar with other products down the line. It sets an unusual precedent for anything that might come next for Meta’s VR plans, eating away at the company’s already thin goodwill with users.

Meta-monetary mathematics

From an outside perspective, the price hike seems arbitrary, which certainly won’t help public distrust of the company. The Quest 2 doesn’t get any new features or tweaks that justify the price hike on the hardware side. The company’s reasoning is that it needs an extra $100 with each purchase to invest more in VR, but that sounds slim on paper. Meta is not need more money to do anything.

It was recently announced during an earnings report that Meta lost $2.8 billion on Reality Labs, the company that leads Meta’s virtual reality efforts. While it is a lot money to lose on a trade pivot, in the grand scheme of overall Meta earnings, it’s not that much. The same report announced that Meta earned $28 billion in the second quarter of 2022, putting the loss into perspective. On top of that, Mark Zuckerberg made it clear that Meta is still doubling down on VR and the Metaverse despite the loss. He said he believes “even more strongly now that the development of these platforms will unlock hundreds of billions of dollars, if not trillions of dollars over time.”

An office meeting taking place in the VR metaverse.
Meta Quest

Losing $2 billion is a big deal for any company, but when you look at Meta’s earnings, it’s clear there’s still a lot to do if it’s as committed to its pivot as it says. The Meta Quest 2 is already the most popular VR headset ever. If Meta continues to support it, it should continue to expand its reach unless the general thirst for VR dies out. Meta clearly believes in Quest 2 and for good reason, so raising its price across the board seems like a setback that can only hurt the hardware’s momentum and the future of its Metaverse ambitions in turn.

Following the announcement of Quest 2’s price increase, it’s clear that the list of consumer concerns clouding the company’s view on the Metaverse isn’t going away anytime soon. The company needs users to fill its virtual rooms and hangouts more than it needs money right now, its revenue reports show. If the ticket to enter the gate is too expensive for users, it could spell disaster for the metaverse before it’s even taken off.

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