Reality Labs is Meta's division that handles all VR/AR projects, including Quest hardware and software, as well as other research and development projects for future AR/VR devices. This department is also responsible for products such as the company'sPortalVideo calling equipment and Ray-Ban Stories glasses.
In MetaLatest Quarterly Financial ReportIn it, the company announced that the Reality Labs segment will bring in $276 million in revenue in the second quarter of 2023, a year-over-year decline of 39%. The segment's operating loss reached $3.74 billion in the second quarter of 2023, up 33% year-over-year. This means that operating losses for the Reality Labs division continue to climb and are significantly skewed compared to year-over-year revenue.
Meta's earnings report shows that the company expects the operating loss of the Reality Labs division to increase "significantly" again in 2024, due to its product development in the field of augmented reality/virtual reality and investment in expanding the ecosystem.
Despite Reality Labs' apparent year-over-year revenue decline, Quest 2 is nearing the end of its lifecycle. In the fourth quarter of 2022, Meta said Reality Labs' revenue decline was due to "fewer Quest 2 sales" - and this was before Meta announced Quest 3. Meta announced Quest 3 in early June, which likely had an impact on Quest 2 sales.
This year's Quest 2 game release schedule is also quite slow, which is likely to be intentional. Meta, developers, and publishers may be saving for the year-end holiday push to release the most important game of the year at the same time as or after Quest 3. For existing Quest 2 owners, there isn't much exciting new content to invest in.
In a report this week, Meta CEO Mark Zuckerberg called the upcoming Quest 3 one of the company's "most exciting roadmaps in a while."
EN_US 
ZH