Key Takeaways
A leaked inside memo from Meta reveals that the corporate plans to extend costs on its digital actuality headsets.
VR leaders Gabriel Aul and Ryan Cairns wrote within the memo that Meta will increase system costs going ahead.
They argued that increased costs would enable Meta to construct a “more healthy” {hardware} enterprise, slightly than counting on the success of any single headset.
Meta is planning to extend costs for its fashionable digital actuality (VR) headsets, in keeping with a leaked inside memo obtained by Enterprise Insider this week.
VR leaders Gabriel Aul and Ryan Cairns wrote within the memo that Meta has to alter its enterprise mannequin for long-term progress. They stated that the corporate will increase system costs “going ahead” with out specifying precisely how a lot costs will enhance. It’s unclear if costs will go up for present headsets or for future fashions.
“Our units might be extra premium in value going ahead, however we’ll have a more healthy enterprise to anchor on and free ourselves from feeling existential about any singular system’s success,” Aul and Cairns wrote within the memo, which they shared with workers final week.
Associated: This Meta Product Unexpectedly Tripled in Income Over the Previous 12 months
The Meta Quest 3 VR headset retails for $499.99, whereas its finances possibility retails at $299.99. The headsets are fashionable, with experiences that Meta bought over a million Quest 3 units as of final yr. The earlier fashions, the Quest 1 and Quest 2, bought almost 20 million items.
Meta additionally stays the undisputed international chief in VR, even because the market itself shrinks attributable to weak demand. In line with analysis launched earlier this yr from international intelligence agency Counterpoint, Meta dominated the worldwide VR headset market in 2024, with a market share of 77%. Nevertheless, the worldwide VR headset market fell 12% in 2024, marking the third straight yr of declines attributable to diminished shopper demand.
Aul and Cairns additionally wrote within the memo that Meta might gradual the tempo of latest {hardware} releases and focus extra on delivering “world-class” software program experiences that match the standard of its units. “We [may] ship new {hardware} at a slower cadence going ahead,” the memo learn.
Associated: Apple Is Reportedly Growing AI Good Glasses to Compete with Meta and Google
The leaders additionally sought to assuage workers fears by reassuring them that the division stays targeted on VR, even within the face of finances cuts. A Bloomberg report final week revealed that Meta plans to chop the finances of Actuality Labs, the part in command of Meta’s VR {hardware} and AI glasses, by as much as 30%. The division has misplaced $73 billion because the begin of 2021. Substantial cuts would possible imply layoffs as early as January, in keeping with Bloomberg’s sources.
“We’re dedicated to VR for the lengthy haul so we have to align our enterprise mannequin and roadmap to an method that may make this attainable,” Aul and Cairns wrote within the memo.
Meta inventory is up over 8% year-to-date. The corporate, which operates the biggest social media platforms on this planet by variety of customers, together with Fb, Instagram and WhatsApp, is valued at $1.6 trillion.
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Key Takeaways
A leaked inside memo from Meta reveals that the corporate plans to extend costs on its digital actuality headsets.
VR leaders Gabriel Aul and Ryan Cairns wrote within the memo that Meta will increase system costs going ahead.
They argued that increased costs would enable Meta to construct a “more healthy” {hardware} enterprise, slightly than counting on the success of any single headset.
Meta is planning to extend costs for its fashionable digital actuality (VR) headsets, in keeping with a leaked inside memo obtained by Enterprise Insider this week.
VR leaders Gabriel Aul and Ryan Cairns wrote within the memo that Meta has to alter its enterprise mannequin for long-term progress. They stated that the corporate will increase system costs “going ahead” with out specifying precisely how a lot costs will enhance. It’s unclear if costs will go up for present headsets or for future fashions.
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