Final month on the annual Recreation Builders Convention, Meta provided an replace to the state of the Quest market. Included in that replace was point out that content material on the Quest retailer has earned “over $2 billion.” If that determine sounds acquainted, that’s as a result of… it’s the identical determine the corporate shared greater than a 12 months in the past.
Because the launch of the Quest platform in 2019, total income earned by builders confirmed promising development by means of the Quest 2 period. However within the final two years, income on the shop development has slowed.
Meta has sometimes known as out new income milestones for the shop, just like the $2 billion determine it gave in September 2023. Greater than a 12 months and a half later, the corporate cited the identical $2 billion determine in a latest replace on the state of the Quest market.
We are able to fairly assume this implies the $3 billion milestone has but to be crossed (in any other case Meta would absolutely have shared that quantity as an alternative). Thus, essentially the most charitable interpretation is that the whole income of content material bought on the Quest platform is simply below $3 billion as of March 2025—let’s name it $2.9 billion.
Utilizing this assumption, we will replace our monitoring of the Quest retailer’s income milestones. We are able to see that after vital development of common month-to-month retailer income within the Quest 2 period, development has largely plateaued within the period of Quest 3 and Quest 3S.
In the identical replace on the state of the Quest market, Meta talked about some further metrics, however with out a lot element:
- “[…] whole funds have been up about 12% in 2024.”
- “[…] clients spent 30% extra month-to-month time in VR in 2024 than the earlier 12 months.”
Meta didn’t reply to requests from Street to VR asking to supply extra context on the “over $2 billion” determine that was said in each 2023 and 2025.
Wanting on the chart above, it’s essential to recollect some key context. Quest 2 launched in October of 2020 as COVID lockdowns have been in full swing and folks have been on the lookout for new methods to remain entertained and linked whereas caught inside. It additionally launched at a beautiful and giftable $300 value level (which was $100 cheaper than its predecessor).
Quest 3, alternatively, launched in October 2023 at a extra premium value of $500. The corporate closely marketed its ‘blended actuality’ capabilities, which have been removed from mature or a transparent value-add at launch.
Seemingly discovering that the costlier Quest 3 wasn’t seeing as a lot uptake because the extra inexpensive Quest 2, Meta went on to launch Quest 3S in October 2024 (returning to the $300 value level). It additionally completely dropped the value of the bigger 512GB mannequin of Quest 3 from $650 all the way down to $500.
It’s solely been about six months since each the launch of Quest 3S and the value drop on Quest 3, so we’ll want to attend longer to see if these modifications will alter the expansion trajectory of spending on the Quest platform. Granted, new tariffs imposed by the Trump administration might upend Meta’s new pricing technique.
Exterior of the value and worth proposition of its headsets, Meta additionally just lately opened up about a major shift in person demographics and spending habits which have modified the panorama of the Quest retailer. In accordance with the corporate, newer and youthful customers are driving better demand for free-to-play content material over premium content material.
