Meta Reportedly Plans Higher VR Prices To Secure Financial Stability

• The memo, said to be issued by Metaverse leaders Gabriel Aul and Ryan Cairns, outlined plans to adjust pricing and extend the replacement cycle for existing devices. 
• The memo comes after Meta pushed back the launch of its highly anticipated mixed reality glasses, ‘Phoenix’.
• Meta has been rapidly changing its priorities in recent months.

Meta Platforms Inc. (META) is reportedly set to increase prices on its virtual reality (VR) devices to secure the company’s long-term financial sustainability. 

According to a Business Insider report citing an internal memo, the move comes as Meta rethinks its VR strategy to balance costs, device performance, and software development.

Premium Pricing Strategy 

The memo, reportedly issued by Metaverse leaders Gabriel Aul and Ryan Cairns, outlined plans to adjust pricing, account for new tariffs, and extend the replacement cycle of existing devices. 

"Our devices will be more premium in price going forward, but we'll have a healthier business to anchor on and free ourselves from feeling existential about any singular device's success," Aul and Cairns said in the memo, as per the report. 

Meta Platforms’ stock inched 0.7% lower in Thursday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory amid ‘normal’ message volume levels. 

The memo comes after Meta pushed back the launch of its highly anticipated mixed reality glasses, ‘Phoenix’, to 2027. 

Budget Cut Plan

Meta is also planning substantial budget cuts for its metaverse division, including layoffs, targeting both the Meta Horizon Worlds platform and the Quest VR unit.

The metaverse group operates under Reality Labs, which handles VR headsets, AR glasses, and experimental technologies. Since 2021, Reality Labs has accumulated losses exceeding $70 billion.

META stock has gained over 11% year-to-date and over 5% in the last 12 months. 

Also See: Why Did ENVB Stock More Than Double In Value Today?

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