Mark Zuckerberg should forget the Quest: Meta's Orion is the real game changer, tech analysts say
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- Meta is still pushing the metaverse and the Quest headset.
- But some tech analysts contend people are most interested in truly wearable tech, like Orion.
- Quest is limiting because of its bulk — and Orion AR glasses are an improvement, the analysts said.
Meta's Orion AR glasses were the true winners of Wednesday's Meta Connect event, where CEO Mark Zuckerberg unveiled what the future could hold for truly wearable — not clunky — tech.
Analysts were charmed by Orion's potential, even though the glasses don't yet have a release date. Some said they're persuaded that augmented-reality wearable glasses like Orion have more potential than mixed-reality headsets, like the bulky Quest. With Orion, users experience AR with the comfort of somewhat normal-sized glasses.
But Meta still dedicated time on Wednesday for its heftier Quest mixed-reality goggles — a segment that some analysts argue will hold less consumer interest over the long run.
Zuckerberg led his keynote with Quest 3S, an entry-level version of the headset. He also flagged updates to Horizon Worlds, a virtual-reality simulation in the so-called metaverse meant to be experienced on the goggles.
"I was surprised that they led with it," Gene Munster, managing partner at Deepwater Asset Management, told Business Insider.
For Munster, it's the Orion that the company should be most excited about: It solves two glaring issues with Quest, he said: It provides a better social experience, and it's truly wearable.
"These headsets — they're still flat, socially, and you're really limited to just using it by yourself," Munster said of the Quest.
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To persuade people to wear a bulky headset like the Quest is a big lift, Munster said. It'll also take some doing to get people to wear glasses, like Orion, but it's less of a lift, he contended.
He said that's why he likes Zuckerberg's vision of more easily wearable tech, like Orion.
Bank of America analyst Justin Post appears to agree. He reiterated his "buy" rating for Meta stock and wrote in a note to clients that investors are more likely to be interested in the Orion glasses than the Quest headset.
Mixed reality and augmented reality share some similarities since they involve digital elements overlayed with the real world. But in MR, the physical and digital world can interact. Virtual reality completely immerses a user in a digital world.
For now, Meta has no release date for Orion and the glasses cost around $10,000 to build, according to The Verge — a figure Meta hasn't commented on.
Still, the presentation of the glasses is enough to get some tech analysts excited. In an interview with Ben Thompson, host of tech podcast Stratechery, Meta CTO Andrew Bosworth said the company is "definitely looking in the next three to five years" for a consumer launch of Orion.
A spokesperson for Meta did not respond to a request for comment for this story.
In the meantime, Munster told BI that given the timeline to get Orion to market, it makes sense that Meta would update the Quest.
"If Orion was going to be out in two years, it would not make sense for them to be investing in Quest," he said.