Meta Considers Free-to-Play Model as Quest Attracts New Wave of Users

Meta’s aspirations for the metaverse are swiftly taking shape, largely influenced by a younger demographic and a broader audience discovering the Quest platform throughout 2024. Samantha Ryan, the Vice President of Metaverse Content, suggests this shift could pave the way for a surge in free-to-play offerings.

In a blog post intended for developers, Ryan shared insights into notable changes in user behavior observed over the past year, driven by many users experiencing Quest for the first time.

“Compared to 2023, device sales climbed in 2024, with users spending more time on average on Quest 3S than any other headset right after its launch,” Ryan notes. “There was also a noticeable uptick in spending across all Quest devices, with total payment volume rising by 12% due to a major increase in in-app purchases.”

Free-to-play games thrive mainly on these in-app purchases. An excellent example is Another Axiom’s VR sensation, Gorilla Tag, which hit over $100 million in gross revenue last summer, with most of it coming from cosmetic purchases within the game.

“We’re forging a platform that prioritizes social interaction,” Ryan continues, “and these younger users tend to hang out with friends in multiplayer games and social apps. They’re driving the popularity of free-to-play titles, similar to trends seen on other platforms. Also, there’s notable growth in younger users engaging with Horizon Worlds.”

Andrew Bosworth, Meta’s CTO, emphasized the importance of their cross-compatible social platform. According to a recently leaked memo, he stated that the mobile version of Horizon Worlds “absolutely has to be successful for our long-term plans to have a chance.”

“We anticipate that free-to-play (F2P) will become a viable strategy for more developers, who until now have predominantly relied on premium apps. However, we don’t foresee F2P completely overshadowing premium apps; both can coexist,” Ryan explains.

Yet, the Quest’s devoted VR enthusiasts, who demand top-notch premium content, continue to be the backbone of this evolving ecosystem. Existing Quest owners have sparked a wave of new device purchases, with “27% of Quest 3 and 20% of Quest 3S users” this year upgrading from previous models.

Ryan observes that the majority of new devices in 2024 were purchased by individuals new to Quest, not just enthusiast upgraders. “The familiar traits of VR enthusiasts no longer fully encapsulate our Quest user base,” she points out.

On the topic of traditional media and entertainment, Ryan mentions that while historically, 2D apps and browsers haven’t had high engagement on Quest, they’ve been gaining traction over the last few years.

“The use of 2D apps has grown since the launch of Quest 3. Improvements to our operating system, like multitasking, theater mode, and immersive audio, are all part of our efforts to cater to this expanding group of users,” Ryan says. In 2024, there was a 10% increase in the time spent by users on media apps per month and a 21% growth in people using the device’s built-in Internet browser.

These trends hint at Quest reaching a critical juncture. Meta’s challenge lies in catering to early adopters’ expectations for premium content while free-to-play and socially-inclined content becomes a more significant part of their revenue strategy. The big question is how much Meta will depend on in-app spending to sustain its developer community without fostering exploitative design principles. One thing is for sure: their task now is leveraging this growth without alienating any part of their diverse audience.