dead Link to the main presentation Tuesday afternoon spent a lot of time talking about virtual reality — and what’s next Quest Pro high-end headphone– It will help revolutionize the future of work and socialization. But the company also spent a lot of time talking about the gaming segment which until now has been the primary use case driving The relative market success of the Quest 2 headphones.
To cement this success, the company officially announced its recent acquisition of three other major VR game studios today:
These recent purchases add to a recent spending spree on the Meta game studio acquisition that has already included Beat Games (Saber won), ready at dawn (Echo color), Sanzaru games (Asgard’s Wrath), reactive precipitation (onwards) and BigBox VR (population is one). In July, the Federal Trade Commission Filed a lawsuit against monopoly To try and stop Meta buying for Inside, the makers of the popular VR fitness app supernatural.
Grow but what speed?
The additional Meta spending is coming from more VR developers as Quest 2 headset owners seem to be spending more than ever on software. Finally, Meta said today that $1.5 billion has been spent on games and apps in the Quest Store since the platform launched in the spring of 2019. That’s more than $1 billion in the company’s cumulative app revenue Announced in Februaryindicating that spending on virtual reality is accelerating at an appropriate pace.
On the other hand, Meta’s 30 percent share of those sales is just $450 million in direct revenue over more than three years. For context, Microsoft recently revealed that it brought in just $2.9 billion in revenue from One year of Xbox Game Pass console subscriptionswhich makes the virtual reality game market look like a relative decline in the group.
Meta VR revenue is still much lower than The $2 billion Facebook paid for Oculus eight years ago. This number does not even represent the high costs of operations, research and development and acquisitions that the company has incurred since the acquisition.
Meta’s “Reality Labs” division (which includes its entire virtual reality business) has lost nearly $10 billion over the past year, according to data from The company’s quarterly earnings statements. John Carmack, from Served as Oculus CTO Until 2019 and still works as a consultant for the company – he said in Podcast interview in August That he “is sick of my stomach thinking about so much money being spent. But that’s how they show their commitment to it…Google goes and cancels all these projects, while Meta is already committed to funding VR and AR even more with it.”
When you succeed, we all succeed?
Despite these heavy losses, Meta still expresses enthusiasm about the number of individual developers who have had success in Quest 2 games. In a flurry of stats, the company revealed that:
- Nearly one in three” of the 400 apps on Quest 2″ generate revenue in the millions.
- This includes 55 titles that have made more than $5 million (more than double the number that reached that number as of last year) and 33 titles that have already made more than $10 million (up from 22 titles in February).
- Near the top of the Quest 2 revenue pile, The Walking Dead: Saints and Sinners It made $50 million, “almost double its revenue on all other platforms,” Mita said
- Sellers quickly like Resident Evil 4 It can generate $2 million in profit from Quest 2 in just 24 hours after launch. A little less, games like Blade and Magic: Nomad And the Zenith: The Last Citymade their first $1 million on Quest in 48 hours and 24 hours, respectively.
- Bonillap He set the record for Quest 2 quick sales, however, as she earned her first $1 million in “less than an hour.”
These are encouraging numbers for a market segment that seemed like a hopelessly small place just a few years ago. But Meta (and its app developers) will have to see years of similarly rapid revenue growth before the company’s very large investment in the space comes close to paying off.
Elsewhere in its presentation, Meta talked about some upcoming Quest games. VR . BETWEEN US—First person to take on the viral sense of social antagonism we enjoy Last seen in AprilIt will finally be released on November 10. And chapter 2 of The Walking Dead: Saints and Sinners The franchise will show its place in New Orleans in December.
Xbox Game Pass subscribers will soon be able to access the Xbox Cloud game library through their headphones, and play streaming titles on a massive 2D virtual screen displayed in virtual reality.