Facebook’s Pursuit of Dominance in Virtual Reality: A Look into its Strategy and Future

Facebook’s recent earnings report highlights its focus on virtual and augmented reality, viewing them as the key to unlocking massive value for people’s lives and the economy. The company has been steadily acquiring small virtual reality workshops, which has given it a robust foundation in modern technology and design skills, enabling it to assert its dominance in the VR and AR world.

Facebook’s business strategy includes acquiring existing virtual reality software and hardware businesses, upgrading its VR equipment, and securing revenue from pre-established VR games while retaining leading software developers to create unique content within the Oculus system. The Oculus Quest 2, a standalone headset with wire-free experience and no need for an external device, gives Facebook a competitive edge in hardware, with a lower price point compared to other major headsets in the market.

Facebook plans to test ads in selected games on the Oculus platform, which could generate more revenue for developers and attract more developers to the Oculus platform, leading to a more realistic gaming experience. With its massive social networking user base of 2.8 billion monthly active users, Facebook has an edge in attracting consumers to VR gaming, making it more accessible and offering a high potential for network effects.

Facebook’s future dominance in the VR world could come from its unique position in attracting top-tier content developers and consumers. With exclusive content offerings, Facebook could attract and retain players, as long as it rolls out ad content in a way that feels organic to Oculus players. Social VR games are more valuable with more players, and Facebook could rapidly gain market share in VR gaming.

Meta Launches Quest Pro Headset for Extended Reality Computing Market

Meta Platforms, formerly Facebook, has launched the Quest Pro virtual and mixed reality headgear, a significant move into the higher-end market for extended reality computing products. The $1,500 headgear, unveiled at Meta’s annual Connect conference, lets users interact with digital creations superimposed over their surroundings in full color. The device was previously known as Project Cambria, announced by CEO Mark Zuckerberg in 2021, signaling Meta’s intention to refocus on running the metaverse.

Meta’s Reality Labs, which created the metaverse, has invested billions of dollars in the idea, losing $10.2 billion in 2021 and $6 billion so far this year. Executives say the Quest Pro will be marketed first through consumer channels, with enterprise-level features like mobile device management and premium support services introduced later. The device is meant to supplement, not replace, the entry-level Quest 2, which costs $399.99, and does not yet support the sophisticated commercial applications that Meta’s metaverse technology aims to enable.

Meta is developing Magic Rooms, a mixed reality experience for Horizon Workrooms software that lets users see their avatars in actual conference rooms with other users. Zuckerberg also has plans to give the avatars legs, which are currently only visible from the waist up. The Quest Pro is less expensive than enterprise-oriented gadgets like Microsoft’s Hololens 2, which starts at $3,500 and is in use in operating rooms and on manufacturing floors.

The launch of Quest Pro is a significant move for Zuckerberg and Meta, who are betting on the potential of the metaverse as the future of computing. The device’s success will depend on its ability to attract consumers and developers to create content for the platform. Meta’s entry into the extended reality computing market will also compete with established players like Microsoft and Apple, who are developing their own mixed reality products.