Meta lost $10 billion on VR in 2021, now raising Quest 2 price by $100

Meta's VR business is losing billions of dollars every quarter, and now the company is raising Quest 2's price tag by $100.

@DeekeTweak
Published Jul 26, 2022 5:15 PM CDT

Meta's VR business is losing billions of dollars every quarter, and now the company is raising the price of its Quest 2 VR headset.

Meta lost  billion on VR in 2021, now raising Quest 2 price by 0 2 | TweakTown.com
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Today Meta announced that all Quest 2 models will see a $100 price increase, representing a 33% premium over existing HMD prices. "Starting in August, Meta Quest 2 will cost $399.99 USD and $499.99 USD for the 128GB and 256GB versions respectively," Oculus announced. Quest 2 headsets will include a free copy of Beat Saber for a limited time (but this game should really be included anyway).

Meta explains that production costs have risen and this $100 price jump will help grow its "investment in groundbreaking research and new product development." Meta also says that gamers have spent over $1 billion in Quest apps so far, but this is a paltry sum to the incredibly $12.468 billion that Meta spent on its Reality Labs division. Reality Labs also lost more than $10 billion in operating income in FY21.

Meta lost $10 billion on VR in 2021, now raising Quest 2 price by $100 1 | TweakTown.com

Meta's Reality Labs, which focuses on VR, AR, and the metaverse, is a loss-leader that requires billions in expense spending every quarter. Reality Labs represents nearly 20% of total quarterly expenses, and the segment has lost multiple billions of dollars in operating income loss quarter-over-quarter, with Q4'21 hitting an incredible $3.3 billion in negative operating income.

The segment has yet to make a profit and isn't expect to make a profit for years.

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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