Meta Launches VR Subscription Service in Effort to Boost Profitability

Meta, the parent company of Facebook, has recently unveiled a new virtual reality (VR) subscription service as part of its strategy to make its VR business more financially viable. The company aims to address the challenges it faced in its VR unit, which incurred a substantial $4 billion loss during the first quarter of the year.

Under the newly introduced Meta Quest+ service, subscribers will gain access to two fresh games every month. This move is a response to the intense competition Meta faces from major players in the market, including tech giant Apple, which recently made headlines with the launch of its much-anticipated mixed-reality headset.

The subscription service, priced at $7.99 per month or $59.99 for an annual subscription, is compatible with Meta's Quest 2, Quest Pro, and forthcoming Quest 3 headsets. By offering a subscription model, Meta aims to attract a steady stream of revenue from dedicated VR enthusiasts.

Mark Zuckerberg, CEO of Meta, had previously shared his vision to construct a "metaverse," an online world where individuals can engage in work, gaming, and communication within a virtual environment. He expressed his aspiration for Meta to be recognized as a metaverse company, anchoring the company's identity and efforts towards building this innovative concept. Zuckerberg believes that artificial intelligence (AI) will play a pivotal role in unlocking the full potential of the metaverse.

While Meta reported a profit of $5.7 billion for the first quarter of this year, surpassing market expectations, its Reality Labs division, responsible for developing VR headsets and related products, suffered a significant net loss of $4 billion during the same period. This highlights the challenges Meta faces in making its VR business financially successful.

The competition in the VR market has been further intensified by Apple's recent announcement of its Vision Pro mixed-reality headset, marking its major hardware launch after almost a decade. Priced at $3,499, Apple's headset is significantly more expensive than existing VR headsets currently available on the market, including Meta's offerings, which range from $299.99 to $999.99.

Meta's foray into the VR subscription service reflects its determination to leverage the growing popularity of virtual reality and make substantial strides toward realizing its metaverse ambitions. As the VR industry evolves and competition intensifies, Meta's strategic moves will undoubtedly shape the future landscape of virtual reality experiences and the broader concept of the metaverse.