Meta is making headway in its metaverse journey, with an interesting twist in 2024 as younger audiences and everyday users are shaping the Quest platform in unexpected ways. Samantha Ryan, the Vice President of Metaverse Content, notes this transformative shift, suggesting that we might see a surge in free-to-play content soon.
In a recent blog post for developers, Ryan pointed out notable changes in how people are using Quest, driven largely by newcomers to the platform. “Sales of devices have gone up in 2024, and on average, users are spending more time on the new Quest 3S devices than any other headset from the start,” she explains. “There’s also been a significant increase in how much money people are spending across all Quest devices, with a 12% rise in total payments thanks to a spike in in-app purchases.”
Free-to-play games are heavily reliant on these in-app buys. Look at Another Axiom’s breakout game, Gorilla Tag (2022), which hit the $100 million mark in revenue last summer, mostly from in-game cosmetic purchases.
Ryan continues, “We’re aiming for a social-first platform, and younger users are keener on spending time with their friends in multiplayer games and social hangout apps. This is boosting the popularity of free-to-play titles — a common trend on other platforms. We’re also noticing an increasing number of young users diving into Horizon Worlds.”
In a recently leaked memo, Meta’s CTO Andrew Bosworth emphasized the importance of their versatile social platform, emphasizing that their mobile version of Horizon Worlds “absolutely needs to break out for our long-term strategy to have a shot.”
Ryan anticipates that the free-to-play (F2P) model will become solidly viable for developers, who have largely depended on premium apps thus far. However, she believes both free and premium models will likely coexist rather than F2P replacing premium content entirely.
Still, the Quest’s core fanbase of VR enthusiasts, who expect top-notch premium content, “is still a crucial part of the expanding ecosystem.” Many Quest device sales are driven by existing owners upgrading from older models, making up 27% of Quest 3 and 20% of Quest 3S users this year.
However, most new devices in 2024 haven’t been purchased by enthusiasts upgrading, but by individuals completely new to the Quest. “The typical VR enthusiast’s traits no longer define our entire user base,” Ryan highlights.
In terms of media and entertainment, Ryan admits that 2D apps and browsers traditionally haven’t had high engagement rates on Quest devices, though that’s slowly changing. “2D app usage has picked up since the release of Quest 3,” she notes. “We’ve made continuous improvements to the operating system, such as adding multitasking, theater mode, and immersive audio, to support our growing user base.” This past year, Quest saw a 10% increase in time spent per-user per-month in media apps and a 21% uptick in users who use the headset’s default Internet browser.
These trends suggest that Quest is at a crucial juncture, as Meta works to cater to early adopters’ demands for premium content while embracing the rising trend of social-driven, free-to-play content that significantly impacts revenue. The big question is how much Meta might lean on in-app spending to keep its developer ecosystem thriving, potentially leading to a focus on designs that maximize engagement. Either way, the challenge for Meta is clear: to harness this growth while ensuring they don’t lose sight of any part of their diverse user base.
