Meta Quest 3S: The VR Revolution That Failed to Ignite 2024 Vacation Enthusiasm
Omdia’s analysis of Sensor Tower data indicates that downloads of the Meta Quest mobile companion application dropped by 27% on Christmas Day 2024 compared to 2023, even with the debut of the Meta Quest 3S in October. Priced starting at $300, the Quest 3S serves as an upgrade to the highly successful Quest 2. There was significant optimism within the industry that it might rejuvenate VR hardware sales due to its reasonable price (starting from $300), the inclusion of the new Batman: Arkham Shadow game, and its improved passthrough mixed reality features.
Figure 1: Meta Quest mobile app downloads over the last six years
Overall downloads for 2024 saw a slight increase to 7.8 million, however, this still falls significantly short of 2022’s record of 10.3 million (refer to Figure 1). Downloads in December fell by 21% year-on-year. Despite an appealingly priced bundle and significant brand recognition, the Quest 3S faced difficulties in attracting new consumers, suggesting ongoing challenges in the VR industry (see: Reality Check for VR: Omdia expects a decline as Apple’s entry fails to invigorate the market).
While it may not be a definitive representation of Quest headset sales, download figures for the Meta Quest app serve as a reliable indicator, as the mobile app must be downloaded as part of the initial setup process for the headset. Sensor Tower does not count re-downloads, app updates, or further downloads on new or additional devices for an active iOS/Google Play account.
Factors such as second-hand sales, upgrades, headset sharing, and non-owners downloading the app to browse the app store complicate the data. Nevertheless, the stagnant download statistics clearly indicate that Meta is not significantly expanding the Quest’s audience beyond its existing user base. This aligns with other telling data, such as sales figures on Amazon product listings and VR headset supply chain statistics, which also suggest a plateauing market. Meta’s increasing focus on smart glasses signifies a strategic shift, as the company seeks alternative product forms that may resonate more with the broader audience than VR.
Indicative Amazon data suggests Meta Quest sales underperformed during Black Friday month
According to data from Amazon product pages, over 160,000 Quest headsets were sold in November 2024 across eight countries – a decrease of 16% compared to 2023 (refer to Figure 2). The Quest 3S represented 66% of sales, with the Quest 3 accounting for the remainder. November typically marks the peak of VR sales due to Black Friday and Cyber Monday, during which Meta offered significant discounts on both Quest 3 and Quest 3S models in all markets. The US alone accounted for 73% of total sales, providing a strong indicator of market dynamics.
The Quest 3S had difficulty attracting new VR users or serving as an enticing upgrade for Quest 2 owners, as its advancements were perceived as marginal. Internally, the Quest 3S is very similar to the Quest 2 and retains its weightiness, mainly due to the continued use of Fresnel lenses. A recurring complaint from reviewers and users has been its inadequate comfort level in comparison to the Quest 3 — likely a result of Meta’s cost-cutting efforts. Furthermore, the sparse AR content that effectively utilizes its enhanced hardware, coupled with the compatibility of most Quest Store content with the Quest 2, further limits the appeal of the Quest 3S. These factors, alongside VR’s persistent struggle to engage a broader audience beyond current enthusiasts, dampened demand during the holiday season.
Figure 2: Quest headset sales on Amazon declined 16% YoY during the Black Friday sales month
The Meta Quest smartphone app ranking data underlines the seasonal nature of headset sales and their US-centricity
The consistent appearance of the Meta Quest iPhone app in the top 200 free app rankings during the holiday season reflects the cyclical trend of headset sales, particularly around Christmas when these devices are popular gifts. This trend also emphasizes the dominance of the US, Canada, and UK as key markets, where the app consistently breaks into the top 10 and often reaches the #1 spot on Christmas Day. In stark contrast, the other three countries—Germany, France, and Australia—plummet far lower in the rankings, rarely nearing the top 10 and barely making it into the top 50, revealing a significant disparity in market engagement (refer to Figure 3).
Figure 3: iPhone App Store ranking data highlights Meta Quest headsets’ seasonality and prominence in the US
Although the increase in popularity and peak concurrent users engaging in VR games during the holiday season indicates some positive interest, the ongoing issues surrounding the VR category persist. According to Omdia’s Consumer VR Headset and Content Revenue Forecast, headset sales dropped by 10% in 2024 to 6.9 million units, while those in active use decreased by 8% to 21.9 million. Engagement throughout the year remains inconsistent, posing a considerable obstacle to Meta’s goal of developing a self-sustaining VR ecosystem.