Meta Considers Free-to-Play Strategy Amid Shift in Quest User Base Due to New Owners

Meta’s journey in the metaverse is rapidly transforming, especially as a younger audience and mainstream consumers redefine the Quest platform throughout 2024. According to Samantha Ryan, Meta’s VP of Metaverse Content, this shift is paving the way for free-to-play content to thrive.

In a recent blog post aimed at developers, Ryan delved into the noticeable changes in user behavior over the past year, noting that the surge of new users to the Quest platform is at the heart of this evolution.

“The year 2024 witnessed a leap in device sales compared to the previous year, and users are logging more hours on Quest 3S devices than any other headset when launched,” Ryan explains. “Additionally, spending increased across Quest devices, with the platform’s total payment volume jumping by 12% due primarily to a surge in in-app purchases.”

Free-to-play games often rely heavily on these in-app transactions. For instance, Another Axiom’s VR sensation, Gorilla Tag, raked in over $100 million in gross revenue by summer, primarily through the sale of in-game cosmetics.

“We’re focusing on building a socially-integrated platform,” Ryan continues. “Younger users tend to spend more time interacting with friends in multiplayer environments and social hangout apps. This trend supports the rise of free-to-play games, a model that’s been popular on other platforms for years. We’re also noticing an uptick in younger users engaging with Horizon Worlds.”

Highlighting the transition toward cross-compatible social experiences, Meta’s CTO, Andrew Bosworth, emphasized in a leaked memo the critical need for the mobile version of Horizon Worlds to succeed for their long-term strategic goals.

Ryan adds, “We anticipate that free-to-play (F2P) will evolve into a widely viable approach for developers who have so far mostly depended on premium apps. However, we believe that the F2P model will complement rather than replace premium apps; the two are expected to coexist amicably.”

Despite this shift, Quest’s base of VR enthusiasts who demand premium content continues to be a cornerstone of this expanding ecosystem. Ryan notes that current Quest owners sparked significant device sales by upgrading from earlier models, making up 27% of Quest 3 users and 20% of Quest 3S users this year.

Still, Ryan points out that most new device owners in 2024 are not enthusiasts upgrading their gear but newcomers to Quest. She says, “The typical characteristics of VR enthusiasts no longer define the entire Quest user base.”

When it comes to media and entertainment, 2D apps and browsers haven’t typically seen high usage on Quest devices, although that has been on the rise recently.

“With the introduction of Quest 3, the use of 2D apps has climbed. Our ongoing updates to the operating system, like multitasking, theater mode, and immersive audio, aim to support this expanding group of users.” Ryan reports a 10% growth in monthly media app usage per user and a 21% increase in people using the headset’s default Internet browser in 2024.

Meta appears to be at a crucial turning point as it strives to meet the premium content desires of early adopters while the rise of social-driven free-to-play content increasingly influences revenue forecasts. Although it’s not yet clear how heavily Meta will depend on in-app spending to support its developer community, there is a risk it may encourage designs focused on maximizing engagement at the expense of depth. What remains clear is Meta’s need to balance this growth without alienating both traditional and new user bases.