On stage at Meta Connect 2023, Meta’s Head of Developer Relations Melissa Brown announced that Quest Store games and apps have generated more than $2 billion in revenue. In addition, more than 100 new games and upgrades will be released for Quest 3 this year, and more than half of them will include MR Content.
Although the app store continues to benefit for developers, but with long-term income growth trends, growth has slowed since last year. $2 billion is a huge achievement for the XR industry as a whole, but it pales in comparison to what Meta routinely spends on its Reality Labs division.
Worst Quarter in Two Years
In July, Meta reported a quarterly loss of nearly $4 billion for the second quarter of 2023. Due to declining Quest 2 sales, Reality Labs’ revenue fell 39%, making it its worst quarter in the past two years.
RoadtoVR’s table can now clearly see what has happened in terms of content sales since the launch of Quest 2 in 2020. Meta announced at the Connect 2022 conference last October that the Quest store has topped $1.5 billion in revenue since launching Quest 1 in 2019.
These figures imply that the company has only made $500 million in revenue from Quest Store content in the past 12 months, which means a clear end to any kind of take-off ramp that might have appeared to be forming.
Quest 3 Can Turn the Slump Around
The new Quest 3 contains most of the features of the Quest Pro headset, including a full-color Passthrough sensor for MR. It is smaller, sleeker and has a more powerful chipset than the Quest 2, which now costs $300. So Meta may next put pressure on the $499 Quest 3 to fill Quest 2’s void in content sales. In terms of content ecology, the Quest 3 is compatible with all the content applicable to the Quest 2, Quest Pro and other headsets. Oculus Studios’ first-party triple-A blockbuster, Asgard′s Wrath 2, which is available for free to those who pre-order Quest 3, is also expected to further boost content sales.
