Meta's Strategic Price Adjustment for VR Devices

Meta, according to an internal memo reviewed by Business Insider, is set to increase the prices of its virtual reality products. Leaders within the Metaverse division, Gabriel Aul and Ryan Cairns, highlighted the necessity for a strategic pivot in business operations to maintain financial stability over the long term.

The memo detailed strategies such as elevating product prices, incorporating additional costs like tariffs, and lengthening the lifespan of existing market devices. Aul and Cairns emphasized, "As our devices become higher-end, our business model will become more robust, allowing us to alleviate dependence on the success of any single product." This message was shared with employees on December 4.

Additionally, the memo underscored the creation of exceptional software offerings, aligning with the superior quality of their devices, even if this means releasing new hardware less frequently. When contacted by Business Insider, Meta abstained from comments on the memo.

Product Pricing and Future Releases

Currently, Meta's leading VR headset, the Meta Quest 3, is priced at $499.99, with the basic version available for $299.99. The company had planned to debut its new mixed reality eyewear, codenamed 'Phoenix', in late 2026. However, their release has been rescheduled to early 2027, according to a previous strategy document viewed by Business Insider.

The memo discussing price hikes from Aul and Cairns did not mention these mixed reality glasses. It instead focused on three main topics from a recent Reality Labs strategy session involving Meta CEO Mark Zuckerberg and CTO Andrew Bosworth. These topics were developing a long-lasting VR business model, crafting high-caliber software applications, and boosting mobile operations.

Commitment to the Virtual Reality Landscape

Meta's executives reassured their staff of the company's dedication to virtual reality innovations. In recent times, Bloomberg disclosed that Meta intends to reduce spending by nearly 30% in Reality Labs, the segment accountable for Meta's hardware developments.

The memo stated, "Our long-term vision for VR compels us to revamp our business strategies and roadmap to support sustained progress." The document detailed efforts to outpace industry growth through simultaneous projects while managing expenses such as tariffs and subsidies for content and product distribution.

Conclusion

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