Meta plans price hike for its virtual reality devices, internal memo shows

Core Insights - Meta is planning to raise prices for its virtual reality devices to ensure long-term sustainability and adapt to new costs like tariffs [1][2] - The company aims to shift its business model to focus on premium pricing and high-quality software experiences, potentially slowing down the release of new hardware [2][4] - Meta's flagship VR headset, the Meta Quest 3, is priced at $499.99, while the entry-level model is $299.99 [3] Business Model Shift - Executives emphasized the need for a business model realignment to support a sustainable VR business in the long term [4][6] - The memo highlighted three major themes: building a sustainable VR business, creating world-class software experiences, and accelerating mobile development [4] Product Strategy - The release of new mixed reality glasses, codenamed "Phoenix," has been postponed from the second half of 2026 to the first half of 2027 [3] - The company is committed to VR and plans to run multiple programs in parallel while managing costs associated with tariffs and subsidies [6] Financial Adjustments - Meta is reportedly planning budget cuts of up to 30% for Reality Labs, the division responsible for its hardware [5]