Meta Platforms Inc (NASDAQ:META) reportedly plans to raise prices for its virtual reality devices.
The news came from executives Gabriel Aul and Ryan Cairns who told employees the company will move to more "premium" device pricing, according to Business Insider, citing an internal memo.
The higher hardware costs are due to tariffs, which have hurt the U.S. tech industry.
Also Read: Meta Preps Major Metaverse Cuts, Analysts Predict Earnings Pop
The memo also indicated that Meta will slow the pace of new hardware releases to focus on delivering higher-quality software that better matches its devices’ capabilities.
Benzinga reached out to Meta’s investor relations team for their take on the report and is awaiting their response.
Currently, Meta's flagship Quest 3 headset sells for $499.99, while the entry-level model is priced at $299.99.
Why Now?
Meta is in the midst of a company-wide shakeup.
The higher price tag on VR wearables comes as the Mark Zuckerberg-led company implements budget cuts of up to 30% at Reality Labs and pulls back from metaverse-focused projects to fund AI glasses.
It’s a stark contrast to what Zuckerberg touted in 2021. At the time, CNBC declared that the “metaverse won Christmas.”
Four years later, the so-called “meta” department at Facebook’s parent company appears bleak. The company’s Quest product saw a year-over-year sales decline in the first half of 2025. While Q3 showed a slight rebound, it was driven by retailers stocking up for the holiday season.
The pricing shift also follows Meta's decision to delay its mixed reality glasses project, known internally as "Phoenix," from the second half of 2026 to the first half of 2027.
Zuckerberg, who promoted Meta's Llama models as open-source AI last year, pivoted sharply after Llama 4 underperformed and faced rising competition from Chinese labs like DeepSeek.
Meta is now developing a new proprietary frontier model, Avocado, whose launch moved from late 2025 to early 2026 due to training challenges.
Meta, which acquired AI-wearable startup Limitless to accelerate "personal superintelligence,” is retiring non-core apps. It will subsequently end commercial sales of the Limitless Pendant, while providing existing users free premium features.
Leadership Changes, Stiff Competition
Zuckerberg replaced longtime Chief Product Officer Chris Cox with 28-year-old Scale AI founder Alexandr Wang as chief AI officer.
Chief AI Scientist Yann LeCun departed to launch his own startup, reflecting the cultural shift.
Meta has already spent $14.3 billion to acquire Wang's team and raised its 2025 capex outlook to over $70 billion.
The company competes directly with Apple Inc (NASDAQ:AAPL) in the premium market, as well as Sony Group Corp (NYSE:SONY), which makes the PlayStation VR2.
META Price Action: Meta Platforms shares were down 1.21% at $648.99 on Wednesday at publication, according to Benzinga Pro data.
As of Wednesday, the stock gained over 8.5% year-to-date.
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