Meta Shifts Focus to Free-to-Play Model Amidst Surge of New Quest Users

Meta’s ambition in the metaverse sphere is swiftly advancing, particularly as younger audiences and everyday users begin shaping the Quest platform throughout 2024. Samantha Ryan, Vice President of Metaverse Content, has noted that these changes might lead to a surge in free-to-play content.

Ryan recently shed light on these developments in a developer blog, citing significant changes in user behavior from the past year, largely due to newcomers embracing Quest. “In 2024, we saw a rise in device sales, with users spending more time on Quest 3S than any previous headset right out of the gate,” Ryan reported. “Spending across Quest devices also increased. We noted a 12% rise in total payment volume, fueled primarily by a boost in in-app purchases.”

Games adopting the free-to-play model rely heavily on these in-app purchases. For instance, Another Axiom’s VR hit Gorilla Tag reached $100 million in gross revenue last summer, most of which came from in-game cosmetic sales.

Ryan elaborated further, stating, “We’re building a social-first platform. Young users want to connect with their friends through multiplayer games and social applications. This trend is ushering free-to-play games to the forefront, much like it did on other platforms. Additionally, there’s a noticeable increase in younger users engaging with Horizon Worlds.”

Andrew Bosworth, Meta’s CTO, in a memo that was recently leaked, emphasized the importance of Horizon Worlds’ mobile version, indicating that its success is crucial for the company’s long-term strategy. “We foresee the free-to-play (F2P) method becoming a widely accepted approach for developers. While premium apps have dominated until now, we believe both F2P and premium models can thrive side by side,” Ryan added.

The Quest platform’s dedicated VR enthusiasts, always on the lookout for high-quality premium content, continue to be a key part of the ecosystem. This is evident as existing Quest users upgrading their devices accounted for 27% of Quest 3 and 20% of Quest 3S purchases over the year.

However, Ryan pointed out a shift: most new device acquisitions in 2024 were by those new to Quest, not just enthusiasts upgrading. “VR enthusiasts don’t fully represent the Quest user base anymore,” Ryan remarked.

On the topic of traditional media use, Ryan noted that engagement with 2D apps and browsers on Quest had historically been low, although there’s been a noticeable uptick recently. “Since the launch of Quest 3, 2D app usage has risen. We’ve introduced operating system enhancements like multitasking, theater mode, and immersive audio to support this growing base,” Ryan said. In 2024, there was a 10% increase in per-user monthly time spent on media apps and a 21% boost in browser usage.

Meta’s recent trajectory indicates that Quest is approaching a critical juncture. The challenge lies in satisfying both the premium content expectations of early adopters and the financial potential of free-to-play, socially-driven content. While the future balance between premium apps and in-app purchases for revenue generation remains uncertain, the key task for Meta is to nurture this growth without isolating any part of its broadening user base.