Meta's Quest 3 Maintains Its Price: Insights from CTO Andrew Bosworth

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Meta's Quest 3 Maintains Its Price: Insights from CTO Andrew Bosworth

Written by
AD

Meta's Chief Technology Officer, Andrew Bosworth, has made it clear that the price of the Quest 3 VR headset will remain stable for the foreseeable future. This announcement comes amidst various discussions and expectations surrounding VR headset pricing, especially during the holiday season.

Key Points from Bosworth's Statement

  • No Price Cuts or Discounts: In a recent Instagram AMA session, Bosworth confirmed that there are no plans to reduce the price of the Quest 3 or offer direct discounts.
  • Pricing Strategy: The current price of the Quest 3, starting at $500 for the 128GB model, is a strategic decision based on production costs and other factors.
  • Comparison with Quest 2: Despite the Quest 2's recent price reduction to $250, the Quest 3 will not follow a similar pricing pattern.

Economic Context Behind the Pricing

  • Component and Assembly Costs: A supply chain analysis estimated the total cost of Quest 3's components and assembly at around $430.
  • Profit Margins: Considering R&D and indirect fixed costs, Meta is likely making minimal profit or even taking a loss on the 128GB Quest 3 model.
  • No Room for Price Reduction: Bosworth's comments suggest that reducing the Quest 3's price would lead to significant financial losses for Meta.

Promotions and Future Plans

  • Current Deals: Quest 3's purchase incentives include a Quest Store gift card from Newegg, Asgard's Wrath 2 for free until January 27, and six months of Quest+ subscription for the 512GB model.
  • Future Headset Developments: Leaked plans indicate that Meta intends to release a more affordable headset in 2024, possibly featuring the Snapdragon XR2 Gen 2 chipset for improved graphics.

Conclusion

Meta's decision to maintain the current pricing of the Quest 3 underscores the company's strategic approach to the VR market. While the Quest 2 sees a price reduction, the Quest 3's pricing reflects the balance between production costs and the company's vision for advanced VR technology. As the VR landscape continues to evolve, Meta's roadmap hints at further innovations and more competitive pricing in the future.