Meta Platforms announced on Thursday that it will increase the prices of its virtual reality headsets starting from April 19 in the United States due to rising memory chip costs.
The entry-level Quest 3S headset, with 128 gigabytes of storage, will now cost $349.99, up from $299.99 previously, the parent company of Facebook said. The price of its higher-end Quest 3 headset, with 512 gigabytes of storage, will increase by $100 to $599.99.
The 256-gigabyte headset will be offered at $449.99, an increase of $50 compared to the previous price.
The rapid deployment of artificial intelligence infrastructure by companies such as OpenAI, Google’s Alphabet, and Microsoft has driven up the demand for memory chips, as manufacturers prioritize components for data centers with higher margins rather than consumer devices.
To manage the impact of the shortage, companies like Dell, HP, and Microsoft have also raised prices for their devices.
Last month, Sony also announced a second global price increase for its PlayStation 5 consoles in less than a year, including a $100 increase in the United States, as the Japanese company faces rising costs of key components.
Meta specified that the new prices will also apply to refurbished Quest units, while accessories will maintain their current prices.
The recent measures taken by the company indicate a strategic shift from VR towards AI, after years of significant spending on its ambitious projects through Reality Labs, the division responsible for developing mixed reality headsets and smart glasses like Quest.
In January, the company laid off about 10% of its employees in the Reality Labs group. Meta also scaled back its VR platform Horizon Worlds.
The metaverse project had prompted the company to change its name in 2021, dropping the Facebook branding. The Reality Labs division has accumulated over $70 billion in operating losses since then.
