Meta raises Quest VR headset prices due to memory chip costs

In Short:
– Meta will raise prices of VR headsets in the U.S. starting April 19 due to rising memory chip costs.
– Price increases for Quest models include the 128 GB at $349.99, 256 GB at $449.99, and 512 GB at $599.99.

Meta Platforms (META.O) will increase the prices of its virtual reality headsets in the U.S. starting April 19 due to rising memory chip costs.The Quest 3S headset with 128 GB of storage will rise to $349.99 from $299.99.

Price increase confirmed

The Quest 3 headset with 512 GB will increase by $100 to $599.99.

The 256 GB variant will now cost $449.99, a $50 increase.

Demand for memory chips has surged due to artificial intelligence infrastructure growth by companies such as OpenAI, Google, and Microsoft.

To cope, companies like Dell and HP have raised device prices.

Sony also recently announced its second global price increase for PlayStation 5 consoles due to component costs.

Meta plans to extend these price adjustments to refurbished Quest units while keeping accessory prices stable.

These changes signal a shift in Meta’s focus from VR to AI following significant investments in its metaverse projects through Reality Labs.

Earlier this year, Meta laid off approximately 10% of the Reality Labs workforce.

The company has also reduced its VR platform, Horizon Worlds.

Since its 2021 rebranding from Facebook, Reality Labs has recorded over $70 billion in operating losses.

Strategic focus shift

Meta’s pricing strategy reflects broader industry trends influenced by supply chain challenges.

Anticipated demand dynamics may shape future product offerings in the tech sector.

Adapting to evolving market conditions will be crucial for Meta’s continued success in the competitive landscape.