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Does facebook make profit on each quest sold? I was under the impression it was a loss leader subsidized by their advertising income and justified by projected future monetization.

Another commenter mentioned that the corporate no-account-required model costs $699, so that may be a more fair comparison. Is facebook subsidizing each Quest 2 by $400 (and assuming they'll be able to extract roughly that amount from each user)?

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I don't think it's safe to assume the $699 price tag is the same as the unit cost to Facebook. They'll charge whatever they can get people to pay for it, plus they have a vested interest in portraying ad-free prices as unreasonably high.

Yep, that’s correct!

They heavily subsidize their VR devices…nothing unusual though, all game consoles are subsidized

> all game consoles are subsidized

I think that's only true for Playstation and Xbox. Pretty sure Nintendo makes a profit on every console.

It's not even really true for PlayStation or Xbox. They often launch consoles at a loss (or even just a break even price), but manufacturing costs quickly come down while MSRP stays the same. The PS5 has already hit this threshold if Sony is to be believed.

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