META is rolling out a new, cheaper version of its expensive Meta Quest 3 mixed reality headset. Announced during the company’s annual Meta Connect event, the Meta Quest 3S offers the same features as the Meta Quest 3 at a starting price of $299. Meta will also reduce the price of the Quest 3 from $649 to $499.
The Quest 3S has the same full-color mixed reality capabilities as the Quest 3, but with a smaller field of view and a different overall design. According to Mehta, the Quest 3S will also run on the same Qualcomm (QCOM) Snapdragon XR2 generation. Found 2 chips on Quest 3.
With the launch of the Quest 3S, the company will also discontinue the older Quest 2 and more expensive Quest Pro headsets.
Meta positions the Quest 3S as an entry-level headset for consumers who are just getting started with mixed reality apps or looking to upgrade from older Quest models. In other words, the Quest 3 is aimed at consumers who are already fans of mixed reality and are willing to shell out cash for Meta’s top-of-the-line features.
Meta has debuted the $299 Meta Quest 3S headset. (Image: Meta) (Meta)
Meta said the Quest 3S will be compatible with the company’s entire library of apps and games, including support for upcoming titles such as “Batman: Arkham Shadow.”
But Meta isn’t the only name in the headset business. Apple (AAPL) also sells its Vision Pro mixed reality device, but at $3,499, it’s much more expensive than Meta’s offering. Apple has not provided any insight into the device’s sales performance.
Mixed reality headset sales have faced a tough road lately. Global shipments of augmented reality and virtual reality headsets fell 28% year-over-year to 1.1 million units in the second quarter, according to IDC.
“In the last few quarters, mixed reality (MR) headsets have seen a dramatic increase in fidelity, first with the launch of the Quest 3 and then with the launch of the Vision Pro,” said Jitesh, research manager, IDC Worldwide Mobile Device Tracker. Ubrani said in the release.
“However, few consumers have experienced this new technology due to the lack of affordable options.”
However, the Meta Quest 3S’s relatively low price point could start to change the game. According to IDC, headset shipments are expected to increase from 6.7 million units in 2024 to 22.9 million units in 2028.
While this is a definite improvement for the headset business, it’s still a long way from the hundreds of millions of smartphones sold each year. Headsets are also gaining momentum with the gaming industry, including console makers such as Nintendo (NTDOY), which is expected to launch its next generation of consoles in 2025, and Sony (SONY), which is preparing to ship advanced gaming consoles. have to fight against fierce competition. A powered-up version of PlayStation 5 will be released this fall.
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Meta has also struggled to turn a profit from its vast augmented reality investments. The company expects the segment to record a loss of $16 billion in 2023, up from $13.7 billion in 2022, and expect losses to increase in 2024.
Still, as a leader in mixed reality, Meta could be the company that truly moves the industry forward. It just takes time.
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