Khaberni - Meta executives, in an internal memo, said that the company plans to raise the prices of its virtual reality devices.
Metaverse department leaders, Gabriel Aul and Ryan Kearns, told staff that the company needs to "undergo a transformation" in its business model to ensure long-term sustainability.
This will include price increases, taking new costs such as customs duties into account, and extending the replacement cycle of devices available in the market, according to a report from "Business Insider" on the company's internal memo, which "Al Arabiya Business" viewed.
Aul and Kearns wrote in the memo, distributed to employees on December 4: "Our devices will be higher priced in the future, but we will have a healthier business to rely on and free ourselves from existential anxiety about the success of any single device."
Aul and Kearns called for delivering high-quality software experiences that match the “excellence” of their devices, adding that it might mean "we will introduce new devices at a slower pace in the future."
The company's flagship virtual reality device, "Meta Quest 3," is sold for $499.99, while its basic model is priced at $299.99.
This change comes following Meta's postponement of the launch of its new mixed reality glasses, codenamed "Phoenix," from the second half of 2026 to the first half of 2027.
The memo by Aul and Kearns announcing the device price increase did not mention the mixed reality glasses. The memo outlined three main pillars drawn from a recent strategic meeting related to the "Reality Labs" division with Meta's CEO, Mark Zuckerberg, and the head of technology, Andrew Bosworth.
These pillars include: how to build a sustainable virtual reality business in the long term, how to deliver "world-class" software experiences, and how to accelerate the pace of work on mobile devices.
They also sought to reassure employees that the company’s focus remains firmly on virtual reality. Earlier this month, Bloomberg reported that Meta plans to cut the budget of its "Reality Labs" division, responsible for Meta devices, by up to 30%.
