[namelessoracle]

They were taking massive losses on Quest 2. So this is a sign that the VR division is needing to tighten some belts on the losses, or that manufacturers have raised prices that this is required for them to maintain same Loss ratios and there wasn't stomach to take even further hits.

Given the stated focus of the company (to the point of renaming to highlight VR focus) I would imagine it's the supply side of the equation.

Also another callout is that I believe Quest 2's have been getting passive upgrades, with newer models having more base storage and other small enhancements.

Another callout is that its common wisdom that advertising is first to be cut during recession, so this might be pre-emptive belt tightening sense their projections show its not palatable anymore to take the same level of loss.

[terafo]

And there was an issue with massive recall of Quest 2 headsets last year, it surely did hit their bottom line.