Quest 3 sales are outpacing expectations, according to Mark Zuckerberg
Meta Quest 3 is selling better than expected, Zuckerberg told investors. But VR is still a money-losing business for Meta, and will be for many years to come.
Meta has presented its financial results for the second quarter of 2024.
Speaking to investors, Zuckerberg said that Quest 3 sales are "outpacing our expectations".
The Ray-Ban Meta Smart Glasses continue to be a bigger hit than expected as well. "Demand is still outpacing our ability to build them, but I'm hopeful that we'll be able to meet that demand soon," Zuckerberg said.
Nevertheless, Meta's VR and AR division is still a loss-making business and will remain so for a long time to come. CFO Susan Li presented the following numbers:
- Reality Labs' revenue for the second quarter was $353 million, up 28 percent year-over-year. According to Li, revenue was primarily driven by sales of Quest headsets, i.e. Quest 2 and Quest 3.
- Expenses for Reality Labs were $4.8 billion. Subtracting revenues from expenses results in a loss of approximately $4.5 billion.
Li reiterated, as she does on every quarterly conference call, that Reality Labs' expenses will continue to increase meaningfully.
Prediction: Meta Quest 3S will strengthen the positive trend
In the last three quarters, Reality Labs' revenue increased compared to the previous year due to the launch of Meta Quest 3. However, 2023 was also a weaker year overall compared to 2022 and 2021. It will be interesting to see if Meta will reach new revenue records in 2024 and 2025.
Hopes are pinned on the yet-to-be-announced Meta Quest 3S, a budget headset that will follow in the footsteps of the sold-out Quest 2 later this year, according to numerous reports. The headset is expected to be significantly cheaper than the Quest 3. Will the mixed reality headset be as successful or even more so than the Quest 2? 2025 will show.
Note: Links to online stores in articles can be so-called affiliate links. If you buy through this link, MIXED receives a commission from the provider. For you the price does not change.
