Meta’s Masterplan to Increase Metaverse Users: Lower Prices and Target Teens

Hey Mr. Zuckerberg, how’s the metaverse coming along?

And what are you gonna do about it?

1/ Reduce prices. Last Friday, Zuck lowered the price of its Meta Quest Pro from $1,500 to $1,000 and the 256GB Meta Quest 2 from $500 to $430.

Zuck framed it so that “more people can get into VR,” — but people familiar with the matter said it’s due to low demand (BBG).

2/ Push Horizon Worlds onto teens. Last month, WSJ reported that Meta was looking to lower the minimum age on its metaverse Horizon Worlds from 18 to 13. But two US senators warned Zuck not to go after teens — citing Meta’s “track record of failure to protect children and teens.”

Meta’s problems are much too familiar now — investing billions into its metaverse, which no one wants to be in. As of January, Horizon had an 11% retention rate — only about one in nine users played again the following month.

• Horizon Worlds’ user base is shrinking.
• Meta has lost $26B in its VR division Reality Labs since Oct. 2020.
• Its stock fell nearly 60% in 2022.

But despite its Reality Labs division losing $13.7B last year alone, the entire company still managed to pump out $23B in profits.

How do investors feel? First, angry. Then, opportunistic. Investors have turned their attention to Meta’s recovering ad division — which helped send $META up over 100% since last November.

Investors have become de-sensitized to Zuck’s metaverse plans, and not even a reported $13.7B loss could stop its run.