meta revenue

Meta’s XR Revenue Down 39% “due to lower Quest 2 sales,” as Quest 3 & Vision Pro Loom

apple vision pro, Meta, Meta Quest 2, Meta Quest 3, Meta Quest Pro, meta reality labs, meta revenue, meta xr revenue, News, Quest 2, quest 3, reality labs, reality labs q2 2023, reality labs revenue, VR Industry / Mike M. / July 28, 2023

Meta’s latest quarterly results show its Reality Labs XR division is again reporting an operating loss just south of $4 billion. Now, for its Q2 2023 results, the company says Reality Labs’ revenue was down by 39% due to lower Quest 2 sales, making for the worst quarterly performance in the past two years.

Meta has been clear about its plan to spend aggressively on XR over the next several years, so it’s again no surprise we’re seeing operating budgets in the billions with only a fraction of that coming back in via Quest 2 hardware and software sales.

In fact, Quest 2 sales play such an important role in Reality Labs’ quarterly performance that Meta has reported $276 million in revenue in Q2 2023, or 39% lower than last quarter.

Meta reported that Reality Labs expenses were $4 billion, which was up 23% since the same period last year. The company says this was due to lapping a reduction in Reality Labs loss reserves and growth in employee-related costs, bringing the XR division’s operating loss to $3.7 billion for Q2 2023.

Meta says it expects continued operating losses in the future, saying losses will likely “increase meaningfully year-over-year due to our ongoing product development efforts in AR/VR and our investments to further scale our ecosystem.”

Meanwhile, the company is preparing to launch Quest 3 in late 2023, the $500 follow-up headset that integrates many of Quest Pro’s mixed reality capabilities. Meta’s $1,000 Quest Pro has also reportedly been discontinued, however (without substantiating that particular claim) Meta CTO Andrew Bosworth implied earlier this month that a Quest Pro 2 isn’t off the table.

Apple’s Vision Pro is also looming, set to launch sometime next year. As rising tides lift all boats, hype around Vision Pro could actually benefit Meta in the short term. Apple’s $3,500 XR headset has attracted new attention to the space, however Meta’s consumer-friendly pricing and extensive game catalogue for Quest 3 may be well positioned this holiday to capitalize on that Apple-adjacent cachet.

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40 Quest Titles Report Over $10M in Revenue, Meta Says “giant correlation” Between Quality & Sales

GDC 2023, Meta, meta apps, meta game revenue, meta games, meta revenue, News Bits, quest 2 games, quest 2 games stats, quest 2 revenue / Ryan Harris / March 23, 2023

Meta today revealed at Game Developers Conference (GDC) a fresh bit of insight into Quest Store stats.

The company says in a developer blog post there are now 500+ titles available on the Meta Quest Store, 40 of which have grossed over $10 million in revenue.

At Connect 2022 in October, the company reported that 33 titles out of the 400 apps on the Quest Store at the time had tipped over the $10 million mark. Since then, the Quest Store has ostensibly added around 100 games in the time span of around five months.

And it seems those high-earning games are picking up steam too. The number of titles at the $20-million mark has doubled year over year, Meta says.

As far as today’s stats tease go, Meta is most certainly counting all Quest apps and games on the store, and not just those targeting Quest 2 or Quest Pro. Notably, the company is sunsetting the original 2019 Quest soon.

Chris Pruett, Meta Director of Content Ecosystem and Head of Third-party Games, outlined a few key metrics in what’s performing best on Quest:

Top game genres include multiplayer competitive, physics combat, horror adventure, fitness and workout, social collaborative, and shooters.

Growth categories include single-player narrative adventure, boxing/golf and sports, RPG, simulation, and survival.

Referring to game revenue, Pruett says there’s a “giant correlation between quality and sales.”

“The cohorts of Quest customers over time, the ones coming in recently, look very different than the early enthusiasts,” Pruett said to the GDC crowd. “Their expectations are like those of a modern game console.’

Pruett doesn’t think we’re “anywhere close to the upper-bound for visual quality and game complexity on Quest 2—partially because we have some awesome tech that most of you aren’t using yet.” Continuing, Pruett concludes that “increased revenue potential on the platform is what’s going to drive quality.”

Despite the blogpost announce, the company hasn’t revealed any change in gross app revenue since Connect 2022. Meta is still stating it’s generated “over $1.5 billion” in revenue from Quest games, tallied from the platform’s founding in 2019 to October 2022.

We have boots on the ground at GDC 2023 in San Francisco, so we’re sure to learn more while we’re there. Make sure to check back soon for all things VR/AR gaming from this year’s GDC,

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Meta Reality Labs Earnings Reveal a Less Successful Holiday Season & Highest Operating Costs Yet

Meta, meta q4 earnings, meta q4 quest earnings, meta q4 reality labs earnings, meta revenue, News, reality labs revenue, VR Industry / Blake Jones / February 1, 2023

Meta today revealed its latest quarterly earnings results, showing that Reality Labs, the company’s XR and metaverse arm, had a smaller holiday season than the last, while operating costs have reached their highest levels yet.

Today during the company’s Q4 earnings call, Meta revealed the latest revenue and operating cost figures for its XR and metaverse division, Reality Labs, providing one of the clearest indicators of the success the company is seeing in this space.

The fourth quarter has consistently been the best performer for Reality Labs, no doubt thanks to the holiday season driving sales of the company’s offerings.

In the fourth quarter of 2022, the company saw $727 million in revenue, which was 17% less compared to the fourth quarter of 2021 when the company pulled in $877 million in revenue.

The fourth quarter of 2021 was a good performer for Reality Labs revenue thanks to the success of Quest 2 which had launched earlier that year.

In the fourth quarter of 2022, the company’s latest headset to launch was Quest Pro, it’s high-end MR headset. Unsurprisingly, the more expensive device—which has yet to find a strong value proposition at $1,500—doesn’t seem to have performed as well as Quest 2 did in its launch year. Just days ago, Meta temporarily discounted the price of the headset to $1,100, appearing to test the waters at that lower price. Granted, XR headsets aren’t the only product Reality Labs offers, which means the division’s other product lines—video calling speakers and smart glasses—may have had a role to play.

In addition to a smaller holiday season than last year, the latest earnings for Reality Labs show the division’s expenses were greater than in any previous quarter, surpassing $4 billion for the first time.

This continues a trend of Meta’s ever-growing investments in Reality Labs which the company has warned investors may not flourish until the 2030s.

In the face of operating costs far outpacing revenue, Meta CEO Mark Zuckerberg told investors that his management theme for 2023 was “efficiency,” saying he wants to focus the company on streamlining its structure to move faster while being more aggressive about shutting down projects that aren’t performing.

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