The Meta Quest 3, the highly anticipated virtual reality (VR) headset, may not live up to its predecessor’s success, according to industry analyst Ming-Chi Kuo. Kuo’s shocking allegations about the expected sales figures for the headset have dampened the hype surrounding its release.
Meta has been generating excitement for the Meta Quest 3 with a series of promotional videos and updates about the headset. The company aims to address the drawbacks of its previous model, the Meta Quest 2, with this new release.
The Meta Quest 3 is touted to be 40% smaller than its predecessor, although it is not lighter. It boasts double the processing power and a 30% better resolution. However, it also comes with a higher price tag, especially considering the recent price drop of the Quest 2.
But early indications suggest that consumers are not convinced by the Quest 3. Ming-Chi Kuo’s analysis points to declining demand for head-mounted displays and the metaverse in general. Kuo reveals that the original shipment forecast for the Quest 3 in the second half of 2023 was over 7 million units. However, due to anticipated weak demand, the current shipment forecast has been reduced to between 2 and 2.5 million units, with only 1 million units estimated for 2024.
These lower-than-expected sales figures would be a major setback for Meta. Ming-Chi Kuo even speculates that the potential losses for Meta’s hardware business may exceed projections and warrant investors’ attention.
These gloomy projections may have also prompted the recent lay-offs at Meta, as reported by Reuters. About 4,000 jobs across various Meta teams, including Facebook, Instagram, and Reality Labs, responsible for virtual reality technology, are being cut.
It appears that the future of virtual reality is now in doubt. Despite Mark Zuckerberg’s strong belief in VR and the metaverse, consumers remain unconvinced by his vision thus far.
Nevertheless, the Meta Quest 3’s release is imminent, and a full review will be available soon. For those planning to purchase the Quest 3, it is recommended to check out the list of the best VR games to ensure an enjoyable experience with the new headset.