After a long time in the making and plenty of development, Meta Platforms (NASDAQ:META) announced a big new subscription plan for its Quest headset users. The plan hit the user base with all the enthusiasm of a sleepy toddler wielding a pool noodle, and Meta Platforms’ share price slid substantially at the time of writing. A closer look at the Meta Quest+ plan suggests why some may have a tough time with this. Users pay $1 for their first month, and then after that, can pay either $7.99 a month or $59.99 for a year. Those who buy in get access to two “handpicked”—by whom, it’s not clear—virtual reality titles per month.
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However, the titles remain accessible throughout the duration of the subscription, and the longer the user stays subscribed, the more titles they get access to. Users can cancel at any time, but upon restarting the subscription, the user gets access to all the titles previously “unlocked.”
It’s described as being similar to PlayStation Plus in that way, as it also gives free titles to subscribers. So too, did Microsoft (NASDAQ:MSFT) with its Games with Gold service. Currently, the Meta platform works with the Meta Quest 2 and Quest Pro headsets. When the Quest 3 goes live later this fall, it will likely work there as well. And with Reality Labs generating a $3.99 billion operating loss in its first quarter, it’s clear Meta Platforms will want to see some kind of recovery as soon as possible. Whether they can get there from this, however, isn’t clear.
Analysts aren’t having too many qualms, though. Meta Platforms stock is considered a Strong Buy with 36 Buy ratings against just five Holds. Meanwhile, with an average price target of $293.37, Meta Platforms stock can only offer a scanty 5.02% upside potential.
