Taking into account inflationary pressures, Facebook parent company Meta (META-US) announced on Twitter on Tuesday (26th) that it will increase the price of the Quest 2 virtual reality (VR) headset by $100 starting August 1.
According to the tweet, the 128 GB version of the Quest 2 will be available for $399 starting August 1, while the 256 GB version will cost $499.
Rising costs to manufacture and ship products necessitate price increases for VR headsets in order to continue investing in the long-term development of the VR industry, Meta said.
“By adjusting the price of the Quest 2, we can continue to expand our investment in breakthrough research and new product development to take the VR industry to new heights.”
Meta’s Reality Labs division, which includes VR headsets, had revenue of just $215 million in the first quarter, much smaller than Facebook’s $27 billion in advertising revenue. Meanwhile, Reality Labs posted an operating loss of $2.96 billion.
According to research by analyst firm Counterpoint, Meta shipped more than 10 million Quest 2 headsets last year, surpassing the performance of other companies selling VR headsets such as Sony and HTC, which Counterpoint believes is due to Quest 2 sales. The price of $299 is relatively cheap and more attractive to consumers.
Meta CEO Mark Zuckerberg intends over the next 10 years to propel the company into the Metaverse, where consumers work and play.