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Meta’s vision for the metaverse is rapidly evolving, with an intriguing shift toward younger users and more mainstream audiences reshaping the Quest platform throughout 2024. Samantha Ryan, the VP of Metaverse Content, notes that this trend could lead to a surge in free-to-play content.
In a recent developer blog post, Ryan shared some fascinating insights into how user behavior has shifted over the past year. Notably, the platform has been transformed by an influx of users who are brand new to Quest.
“In 2024, we sold more devices than the previous year,” Ryan explains. “People are spending more time on their Quest 3S devices at launch than on any other headset. Additionally, there’s been a notable increase in spending on Quest devices, with total payment volume rising by 12% in 2024. This growth has been fueled primarily by in-app purchases.”
Free-to-play games thrive on these in-app purchases, with Another Axiom’s hit VR game, Gorilla Tag (2022), achieving a staggering $100 million in gross revenue last summer, thanks mostly to in-game cosmetics.
“We’re building a platform that puts social interaction first,” Ryan continues. “Younger users are more inclined to engage with friends in multiplayer experiences and social hangout apps. This trend is driving the popularity of free-to-play titles, a pattern seen on many other platforms. Moreover, there is a noticeable increase in younger users within Horizon Worlds.”
Highlighting the company’s ambitions, Meta CTO Andrew Bosworth pointed to their focus on a cross-compatible social platform. In a recently leaked memo, he emphasized the importance of the mobile phone version of Horizon Worlds, noting that it “absolutely needs to take off for our long-term plans to succeed.”
Ryan believes that free-to-play (F2P) could soon become a viable strategy for developers who have traditionally relied on premium apps. “While we expect F2P to gain traction, it’s not likely to replace premium apps. Both models are expected to thrive side by side,” she adds.
Despite this shift, the core group of VR enthusiasts, who demand high-quality premium content, remains crucial to the growing ecosystem. Existing Quest owners are driving a significant wave of device sales as they upgrade from earlier models, accounting for 27% of Quest 3 and 20% of Quest 3S users within the year.
However, Ryan points out that the majority of new device sales in 2024 came from users entirely new to Quest. “Traditional VR enthusiast attributes no longer define our full user base,” she states.
Regarding media and entertainment consumption, Ryan notes that 2D apps and browsers historically had lower engagement on Quest devices, although usage has been on the rise in recent years.
“Since the launch of Quest 3, the use of 2D apps has grown. We’ve made operating system enhancements like multitasking, theater mode, and immersive audio to support this expanding customer group.” In 2024, users spent 10% more time monthly in media apps, and there was a 21% increase in people using the headset’s default Internet browser.
Meta’s latest trends indicate that Quest is approaching a significant juncture. The company aims to cater to early adopters who expect premium content while acknowledging the escalating influence of free-to-play, socially-driven content on revenue expectations. However, it’s still unclear how dependent Meta will become on in-app spending to sustain its developer ecosystem. This dynamic could lead to design approaches focused primarily on maximizing engagement. The challenge for Meta now is to balance this growth without alienating either end of their audience spectrum.
