Synopsis
Meta Platforms is raising prices for its virtual reality headsets starting April 19 in the United States. This move is driven by increasing costs for memory chips. The entry-level Quest 3S and higher-end Quest 3 models will see price adjustments. Other tech companies are also increasing device prices due to similar component supply issues.Listen to this article in summarized format
Its entry-level Quest 3S headset with 128 gigabytes of storage will now cost $349.99, compared with $299.99 earlier, the Facebook parent said. The price of its higher-end Quest 3 headset with 512 gigabytes of storage will increase by $100 to $599.99.
The 256-gigabyte headset will be priced at $449.99, up $50 from its previous level.
The rapid build-out of artificial intelligence infrastructure by companies such as OpenAI, Alphabet's Google and Microsoft has driven up demand for memory chips, as manufacturers prioritise components for higher-margin data centers over consumer devices.
To manage the impact of the tight supplies, companies such as Dell, HP and Microsoft have also increased prices of their devices.
Last month, Sony also announced a second global price hike for its PlayStation 5 consoles in less than a year, including a $100 increase in the U.S., as the Japanese firm grapples with rising costs of key components.
Meta said the new prices would also apply to refurbished Quest units, while accessories would retain current pricing.
The company's recent moves indicate a strategic pivot away from VR toward AI after years of heavy spending on its metaverse ambitions through Reality Labs, the division responsible for developing Quest mixed-reality headsets and smart glasses.
In January, the company laid off roughly 10% of its employees within the Reality Labs group. Meta has also scaled back its VR platform Horizon Worlds.
The metaverse project had prompted the company's name change from Facebook in 2021. The Reality Labs division has accumulated more than $70 billion in operating losses since then.
