Technologies

Meta Quest 3: What to Expect in 2023

Meta’s next headset should be a lot less expensive than Apple’s, and is arriving this year. Could it have an edge?

This has been a big year for new VR headsets: the PlayStation VR 2 and Vive XR Elite are already here, and Apple’s mixed reality headset should be announced in a matter of weeks. The biggest product of all of them, however, could be the Meta Quest 3.

Meta’s sequel to the most popular VR headset in the world right now will be a 2023 product, and Meta’s Mark Zuckerberg has already confirmed it will be priced similarly to the Quest 2. That should mean it’ll be a far more affordable headset than what Apple is readying.

Meta Quest 2 $400 at Meta

Will it also be the best? Here’s what we expect.

Meta Quest Pro virtual reality headset — The Quest Pro (left) next to the Quest 2 (right). The Quest 3 may be smaller in the front like the Pro, but with the Quest 2’s elastic head straps.

Scott Stein/CNET

Price: Somewhere around $400?

Meta’s work-focused Quest Pro headset that debuted last fall was a misfire, starting at $1,500 and now reduced to $1,000. Meta’s Quest 3 should fall in line with the $400 price of the Quest 2 headset (although that’s an increase from the Quest 2’s original price of $300). Although considering it will likely have better performance and features, it could end up being a little more expensive.

That price would be less than the PlayStation VR 2, which also needs a PlayStation 5 to work. And it would likely be thousands of dollars less than what the Apple headset is expected to cost, which many industry watchers are pinning at $3000.

Watch this: Meta Quest Pro Half a Year Later: Why I Wear It and Why You Should Wait for the Quest 3

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Features: Mixed reality, but maybe not eye tracking

The future of VR is already moving towards mixed reality, blending VR with real-world surroundings using passthrough cameras projecting real-time footage in-headset. The Quest Pro and Vive XR Elite already do it, and Apple’s headset is expected to do the same.

The Quest 3 should have color passthrough cameras, much like the Quest Pro, Vive XR Elite and Pico 4 do. The Quest 2 has only a basic monochrome passthrough camera. The Quest 3 could also have better depth sensing capabilities, either through improved on-headset sensors or computer vision algorithms. Meta’s selection of mixed reality apps is pretty bare right now, but a mainstream Quest 3 that also taps into the possibilities could spark a lot more apps and games.

VR/AR YouTuber Bradley Lynch detailed a bunch of Quest 3 features last year based on leaks from Meta, which details a lot of what to expect: a depth sensor is planned to be onboard.

Eye tracking may be left out. The Quest Pro has eye tracking and face tracking, which can be turned off in settings and isn’t used for all apps. The PlayStation VR 2 uses eye tracking frequently to optimize graphics performance, but it’s also tethered to the PS5, and doesn’t have to deal with battery drain concerns. The Quest 3 might skip the feature to save on cost, or perhaps because Meta isn’t ready to deal with the privacy ramifications yet.

A new processor is expected, though. The aging Snapdragon XR2 chip could get a true follow-up (reports say it’ll be a Qualcomm Snapdragon XR2 Gen 2), improving graphics and speed for the new headset, and maybe battery performance as well. Qualcomm already has a multi-year partnership with Meta, unveiling new XR chips that will roll out to other devices in the future. This could be the debut of a new chip, much like the XR2 was for the Quest 2.

Storage sizes and RAM might be upgraded as well, according to Lynch’s report from last year, with a 512GB storage option finally becoming available.

pico-4-vs-quest-2-size — The Pico 4 (left) is significantly smaller in the front than the Quest 2 (right), but the battery gets moved to the larger back strap. The Quest 3 should also be smaller, with the battery staying in the front.

Scott Stein/CNET

Slimmer design

Meta’s improved «pancake optics» lenses for the Quest Pro slimmed down the front of the VR headset versus the Quest 2, with a clearer lens to boot. The Pico 4 headset, another affordable Quest 2-range VR headset, added pancake optics last year. The Quest 3 should get this upgrade too, adding up to a much smaller headset size than the Quest 2.

Smaller could mean more portable. Will new cases and accessories emphasize this? Being able to take a Quest 3 on trips more easily would be a big advantage. HTC’s Vive XR Elite folds down into the size of a pair of (big) glasses, with an optional tube-shaped carry case.

It could work with Meta’s new Quest Pro controllers

Meta updated its controllers with the Quest Pro, adding cameras for better tracking consistency and shrinking down the size. These controllers are currently an expensive upgrade for Quest 2 owners, they sell for $300 separately, but would Meta include them with the Quest 3? Or could they still be optional upgrades?

Another possibility could be another redesigned set of controllers. Meta doesn’t seem ready to get rid of controllers completely for the Quest, although that seems to be the long-term strategy as hand tracking continues to improve.

Lynch also showed leaked looks at the headset last year that suggested the Quest 3 might charge in the current Quest Pro dock.

Games should be a major focus, once again

Meta’s experiments in work and social apps – aka, the metaverse – haven’t taken off, which means gaming is still the biggest use for the Quest 2 (along with fitness). Meta’s upcoming games showcase on June 1 is emphasizing that the Quest 2 is, first and foremost, a game console.

With an expected fall debut, the Quest 3 will likely be positioned again as a game console with a lot of potential fitness, work and social benefits. It’s Meta’s safest bet, and with its expected console-level price, not an absurd proposition in a year where there aren’t expected to be any other new game console debuts to compete with.

Will Quest 3 spark a wave of mixed reality apps?

The Quest 3’s bigger mixed reality focus, and its lower price than the Quest Pro, should finally trigger a wave of new apps that aim to use mixed reality more often. It’s the Quest 3’s biggest new feature, and with Apple likely to show off mixed reality quite a bit as well, it might mean developers are finally going to think in a more AR-like mindset. It’s Meta’s biggest opportunity to try to advance the Quest experience beyond its VR-minded status.

If you’re looking to buy a headset, you should wait

At this point, the fall isn’t far away. The Quest 3 looks like it’ll be the best Meta VR headset, and could be one of the best options for its price when it arrives. Anyone looking for a headset right now should hold off and see what’s coming, especially with both this and Apple’s headset on the horizon.

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know