For now, Meta remains far and away the industry leader in headsets, holding nearly half the market, according to Counterpoint Research. But it has been a money-losing proposition for the company. The big question is whether mainstream consumers will finally embrace the products.

The Quest 3 is the latest attempt to broaden the technology’s appeal. Users of the headset will be able to transition between VR and mixed reality, known as XR, with a double tap on the side of the device. A wearer could use the more immersive VR option when watching a film or playing a game and then move to XR mode when browsing the web and looking at photos. In that situation, the data and images will be overlaid on top of the real-world views surrounding the user.

The Quest 3 features 30 per cent higher resolution, new lenses and a faster chip from Qualcomm. There also are dual-colour pass-through cameras, which let users see the world around them.

The latest headset has double the processing power of the Quest 2, allowing for improved graphics rendering, smoother operation, and faster speeds when loading apps. It is also thinner than the Quest 2 and adds improved speakers as well as new controllers.

The device looks similar to the previous version but has three sensors on the front. The left and right modules are cameras, while the centre sensor is a new component for determining where objects and walls are located within a user’s room. This allows the device to automatically place virtual guardrails so a user does not, say, walk into a table. It also can be used for gaming, such as one title that allows players to shoot items on a wall.

After struggling to make money in VR headsets, Meta is seeking to generate a profit from the Quest 3. It is raising the price of the device by 67 per cent for a model with 128 gigabytes of storage. The Menlo Park, California-based company is also offering a US$650 version with 512 gigabytes of space. The Quest 3 goes on sale on October 10.

Boosting prices in the face of sluggish sales is a gamble for Meta. It has failed to attract consumers to its upscale model, the Quest Pro, which costs US$1,000. But all the products in its line-up will cost a fraction of Apple’s new Vision Pro, which is due in early 2024.

In addition to XR, Meta is banking on new software to lure users. The company has partnered with Microsoft to let the device stream games from the Xbox Cloud Gaming service.

Meta also rolled out a second version of its smart glasses co-developed with Luxottica Group’s Ray-Ban. The last version was not a hit, but Meta hopes to attract consumers with something that looks more like regular spectacles.

The latest version offers new frame options, as well as improved speakers and better cameras. Unlike the sci-fi vision of smart glasses – with augmented reality that can show digital content – this product is less ambitious. It is focused on taking pictures, filming video, making calls and listening to music.

The new models come in two styles – Wayfarer and Headliner – and offer a choice of standard, polarised, transition and prescription lenses. The US$299 glasses also have different size and colour options, such as glossy, matte black and a new transparent version that shows off the internal electronics.

The new models include a 12-megapixel camera and five microphones. That compares with dual 5-megapixel sensors and three microphones on the prior version.