Meta increases the price of Meta Quest 2 VR headsets by $100

by | Jul 26, 2022 | Technology

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Just a day ahead of its second-quarter earnings report, Meta said it would increase the price of its Meta Quest 2 virtual reality headsets by $100 each.

The price increase will bring the company’s revenues in better line with its costs for making the headsets, and that has become important as Meta tumbles into the recession with a core advertising business that has been weakened by Apple’s privacy push. The price increase is effective on August 1.

In the first quarter, Meta lost $2.96 billion in its VR-focused Meta Reality Lab division on revenues of around $695 million. While the ad business made up for the losses, the unheard of price increase — most consumer products get cheaper over time thanks to Moore’s Law and manufacturing efficiencies — is a signal that the company is tightening its belt for what could be a bruising recession.

Before today, Meta has been focused on investing billions to cultivate the VR market based on CEO Mark Zuckerberg’s believe that VR is the foundation for the metaverse, or the next version of the internet. On the plus side, it may mean that the company feels confident enough about demand that it can continue to sell headsets (which are already hampered by supply chain constraints) despite the price increase.

Meta CEO Mark Zuckerberg shows off Holocake 2 VR prototype.“Now, we’re making a change that will help us continue to invest for the long term and keep driving the VR industry forward with best-in-class hardware, action-packed games and cutting-edge research on the path to truly next-gen devices,” Meta said in a blog post.

Starting in August, Meta Quest 2 will cost $400 and $500 f …

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