Meta Platforms (META) has announced new price increases on its Quest virtual reality (VR) headsets.
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Meta says that the price increases are necessary to help it offset the rising costs of memory chips that feature prominently in the wearable headsets. Going forward, Meta Platforms will charge the following for its Quest 3 headsets:
- Quest 3S with 128GB of storage increases from $299 to $349
- Quest 3S with 256GB of storage increases from $399 to $449
- Quest 3 with 512GB of storage increases from $499 to $599
Meta’s Virtual Reality World
“We’re making this change because the cost of building high-performance VR hardware has risen significantly,” said Meta in a written statement. “The global surge in the price of critical components — specifically memory chips — is impacting almost every category of consumer electronics, including VR.”
Meta Platforms’ popular VR headsets came out of its now defunct Metaverse unit, which was a virtual reality realm that the company largely abandoned as it shifted its focus to artificial intelligence (AI). Analysts say that the VR headsets were one of the few tangible and monetizable products to come out of the Metaverse.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 45 Wall Street analysts. That rating is based on 39 Buy and six Hold recommendations issued in the last three months. The average META price target of $856.08 implies 35% upside from current levels.
