quest 2 revenue

Quest Store Revenue Reaches $2 Billion, But Momentum Has Slowed Over the Last Year

Coming alongside the big Quest 3 info dump today at Connect 2023, Meta revealed that Quest Store games and apps have generated over $2 billion in revenue. While the store is still earning for developers, looking at revenue over time shows that things have cooled off over the last year.

Meta’s Head of Developer Relations Melissa Brown announced the figure on stage, further noting that 100+ new and upgraded titles are coming to the Quest Store before the year’s end, more than half of which will be brand new games and apps.

While $2 billion sounds like an impressive number—it certainly is for the XR industry at large—it pales in comparison to what Meta regularly spends on its Reality Labs division.

Quest 2 next to Quest 3 | Image courtesy Meta

Back in July, the company reported a quarterly loss just south of $4 billion in Q2 2023; Reality Labs’ revenue was down by 39% due to lower Quest 2 sales, making for the worst quarterly performance in the past two years.

With today’s announcement, it’s also clear at what rate content sales have cooled off since Quest 2 was launched in 2020. The company announced at Connect 2022 in October last year that it had topped $1.5 billion in Quest Store revenue, accounting for everything since the first Quest’s launch in 2019, meaning it’s only managed to generate $500 million in the past 12 months, putting a clear end to any kind of take-off ramp that might have appeared to be forming.

Moving forward, this will undoubtedly put more weight on Quest 3 to fill in where Quest 2 left off, as stockholders will no doubt expect the $500 headset to meet or beat its forebear’s relatively meteoric success. Quest 3 pack in much of the functionality of the $1,000 Quest Pro headset, including color passthrough sensors for mixed reality, and has a significantly sleeker profile and more powerful chipset than the now $300 Quest 2.

Will that be enough for first-time VR users to jump in? Enough for Quest 2 users to upgrade? Whatever the case, Meta is undoubtedly subsidizing its XR hardware to make software sales more attractive. And if it doesn’t keep pumping out first-party titles like Asgard’s Wrath 2, they’ll need at least keep those multi-million-dollar success stories coming, like Gorilla Tag’s $26 million in revenue high-swinging success story, or the other 40 Quest games that Meta said had posted revenues over $10 million.

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Connect 2023 kicks off today, taking place September 27th and 28th at Meta’s Menlo Park headquarters. There’s been a ton of news already, so make sure to follow along by heading to our main page for all of the latest in Meta’s XR stuff.

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

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,