In a move that’s sure to rattle the tech world, Meta,the powerhouse behind Facebook, Instagram, and WhatsApp,is reportedly gearing up to slap higher price tags on its wildly popular VR headsets. According to a leaked memo obtained by Business Insider, Meta’s top VR brass are ready to ditch affordability in favor of a “premium” pricing model, leaving loyal users and industry watchers stunned.

The memo, penned by VR execs Gabriel Aul and Ryan Cairns, lays out Meta’s new game plan: make devices more expensive to “ensure long-term growth and sustainability.” Translation? Get ready to pay more for the same headsets. The memo doesn’t bother with details like how much more you’ll be shelling out or which models will get the price bump, but the message is clear,bargain days are over.

Currently, the Quest 3 goes for $499.99, while the Quest 2 is a “budget” option at $299.99. These headsets have helped Meta dominate the VR market, with over a million Quest 3s sold and nearly 20 million combined sales for Quest 1 and 2. But here’s the catch: the VR market itself is shrinking. Despite Meta’s jaw-dropping 77% market share, the sector has shrunk by 12% in the last year alone, marking a third straight year of decline. Ouch.

But wait, there’s more. The memo hints that Meta will slow down on new hardware launches, pivoting to focus on software instead. “We [may] ship new hardware at a slower cadence going forward,” the execs wrote, promising “world-class” software to match their pricier gadgets. This comes as Meta’s Reality Labs division,responsible for VR and AI glasses,faces massive financial pressure.

How bad is it? Reports say Meta is slashing Reality Labs’ budget by up to 30%. The division has racked up a staggering $73 billion in losses since 2021. Layoffs are reportedly looming, possibly as soon as January, according to Bloomberg. Still, Meta’s leadership is putting on a brave face, insisting they’re “committed to VR for the long haul.”

This price hike marks a dramatic U-turn from Meta’s old playbook of subsidizing hardware to grab market share. Now, with the VR market in freefall and losses piling up, Meta is betting that consumers will cough up more cash for “premium” experiences. It’s a risky move that could reshape the entire industry,or backfire spectacularly.

Despite the chaos in its hardware division, Meta’s overall business is still booming. The company’s stock is up over 8% this year, and its market cap sits at a jaw-dropping $1.6 trillion. As the undisputed VR kingpin, Meta’s every move is under the microscope, with competitors and consumers anxiously watching to see what happens next.

With Meta’s price hike looming, the VR landscape is set for a shakeup. Fewer, pricier, and supposedly more advanced devices are on the horizon. The big question: will consumers swallow the higher costs, or will Meta’s “premium” gamble push them away? Stay tuned,this story is just getting started.