- With the launch of Quest 2, Facebook continues the shift in its VR focus to the standalone type of headset design, combining the Oculus Link technology for consistent PC VR gaming experiences.
- Oculus Quest platform alone had generated over $150 million in content revenue.
- With a starting price of $299, Quest 2 is expected to outpace its predecessor and contribute millions of sales.
On September 16, Facebook launched the second generation of Oculus Quest. The new standalone VR headset is powered by the Qualcomm Snapdragon XR2 platform, which is dedicated to creating ultimate VR experiences. It makes a significant leap in computing performance across CPU, GPU and AI capabilities. Compared to its predecessor, the Oculus Quest 2 comes with a Fast-Switch LCD Display, supporting up to 90Hz display refresh rate and 50% more pixels, a redesigned 6-DoF touch controller, and a 256GB onboard storage option.
Exhibit 1: Quest Specification Comparison
Despite the performance upgrades, Facebook has managed to bring the hardware price down. With the standard edition being introduced at $299, the Oculus Quest 2 is expected to quickly gain traction. Since the launch of its first standalone design, or Oculus Go, back in May 2018, Facebook has been focused on building a strong user base for Oculus by introducing affordable VR headsets. The Quest family, thanks to its competitive pricing, the comfort of wearing, and ease of playing, has become the major driving force behind the user growth and now is at the center of the Facebook VR ecosystem.
Exhibit 2: Oculus Sales Estimates During Each Initial Rollout Period
During the first year after its launch, the Oculus Quest saw its sales far ahead of Oculus Go. Meanwhile, Oculus ecosystem developers were able to rake in over $100 million. With the worldwide lockdowns due to the COVID-19 pandemic, consumer spending on Oculus Quest content increased significantly. The revenue in Q3 2020 alone is expected to reach $50 million, greatly inspiring content creation around the Quest platform.
Facebook plans to stop producing the Oculus Rift S in 2021, it is focusing on development of standalone type of VR headsets just like the Quest 2, which will leverage Oculus Link for consistent PC VR gaming experiences. With more production capacity shifting to the Quest 2 in 2021, it will outpace the previous Oculus gadgets and set a new high during October 2020~October 2021.