What They Say
The Quest 2 headset from Meta did well over the holiday with the number of connected headsets on the Steam hardware survey going past 3 million in January and with Quest 2 taking 46% of those. Index, the popular PC VR headset from Steam creator Valve Software, lost share in the market.
Valve has stopped reporting usage of the original Rift and Quest devices as individual percentages and now bundles them with a few additional older devices under “other” headsets at 14.2%.
Separately, Upload VR reported that cumulative sales of content on the Quest store are now over $1 billion. Eight titles on the Quest store have made over $20 million in gross revenue (one of which we know to be Beat Saber), while 14 have made over $10 million and 17 over $5 million.
Meta broke out its revenues from the Reality Labs operation in its annual finances and saw $2.3 billion in revenues over the year, but $3.3 billion operating loss in Q4 alone and bringing the loss from that operation to $10.1 billion for the year. Investors were not impressed with Mark Zuckerberg’s view that losses will continue at that rate as the firm builds the metaverse that he dreams of.
What We Think
Ouch, $10 billion here and $3.3 billion in a quarter. Pretty soon, there will be real money involved! (BR)
