• Meta's Horizon app topped Apple's App Store on Christmas Day, signaling strong VR headset demand.
• Quest headsets, starting at $299, are gaining mainstream traction in virtual reality.
• Despite strong demand, Meta's Reality Labs faces significant financial losses.

Meta's virtual reality ambitions got a Christmas boost this year.

On Christmas Day, the company's Meta Horizon app, which users must download to set up the Quest virtual reality headsets developed by Meta, was the top free app in Apple's App Store in the US and the UK, indicating strong holiday demand.

Meta has never disclosed how many Quest headsets it has sold. The surge in app downloads suggests that the Quest is solidifying its status as one of the most mainstream VR headsets. The devices, which start at $299 and are developed by Meta's Reality Labs division, are a relatively affordable gateway to virtual and mixed-reality experiences. They let people watch movies on giant virtual screens, play immersive games, and even work out.

Meta did not respond to a request for comment about Quest sales from Business Insider.

Quest competes with VR headsets from other companies, including Sony, HTC, and Apple, although Apple's Vision Pro headset costs much more, at $3,500.

Meta has been working to make VR more accessible to a broader audience. In October, the company launched the Quest 3S, a less expensive version of the more advanced Quest 3, priced at $299 — $200 less than the standard model. Like the Quest 3, the 3S lets people experience mixed reality in full color, making it a compelling entry point for VR newcomers.

Meta's quarterly revenue from Reality Labs, which includes $299 Ray-Ban glasses that let people take pictures and talk to Meta's AI chatbot, was $270 million — an increase of 29% compared to the same quarter the year before, the company announced in October.

Still, Reality Labs continues to bleed money. In the third quarter of 2024, Meta reported that Reality Labs lost $4.4 billion, up from $3.7 billion in the same quarter of 2023. For the first nine months of 2024, Reality Labs lost nearly $13 billion, Meta's earnings report said, and the company has warned investors that it expects the division to lose even more money.

"Overall, I'd say Reality Labs is clearly one of our strategic long-term priorities," said Susan Li, Meta's chief financial officer, responding to a question about Reality Labs' losses on the earnings call. She added that Meta expects it to "be an area of significant investment as we build out towards the very ambitious product road map that we have there."

Meta CEO Mark Zuckerberg has remained bullish on the company's VR strategy. On the call, Zuckerberg highlighted the company's strong demand for its Ray-Ban glasses and expressed optimism about Orion, an early prototype of its glasses that superimpose digital elements onto the real world.

"We're not too far off from being able to deliver great-looking glasses that let you seamlessly blend the physical and digital worlds," Zuckerberg said on the earnings call.

Unlike the Meta Horizon app for Quest headsets, Meta View, the app for setting up the Ray-Ban glasses, however, isn't on the App Store's top charts.

• A survey shows Bluesky users are more Democratic and politically engaged than Threads users.
• Threads has 300 million monthly users, surpassing Bluesky's 24 million.
• Bluesky allows users to add their own moderation policies.

A new survey revealed stark political and behavioral differences between users of rival social media platforms Bluesky and Meta-owned Threads.

Bluesky's user base skews heavily Democratic, with nearly half of its users identifying with the party, according to findings published earlier this month by CivicScience, a research and survey company. In contrast, only 34% of Threads users identified as either Democrat or Independent.

The study also found that Bluesky users are more politically engaged overall. And nearly three-quarters of them said that they experienced higher levels of stress postelection. In contrast, 33% of people who used Threads daily said that their stress levels decreased after Donald Trump's victory on November 5.

"With the surge of Bluesky coming so directly in the wake of the presidential election, it's not surprising that the user base is disproportionately more left-leaning than the user base of Threads," John Dick, CivicScience CEO and founder, told Business Insider.

The survey included 12,188 Threads users and 5,431 Bluesky users. This roughly mirrors the ratio of both platforms' user bases in the adult US population, as 18% of respondents reported using Threads daily, compared to 8% for Bluesky, CivicScience data found.

Both social networks experienced significant user growth following the US election, particularly as billionaire Elon Musk, the owner of X, threw his weight behind Trump and actively promoted misinformation that reportedly garnered over 2 billion views.

Still, Threads seems to be eating Bluesky's lunch. Earlier this month, Meta CEO Mark Zuckerberg announced that the platform had more than 300 million monthly active users, compared to Bluesky's 24 million users at the beginning of this month.

Bluesky began life inside Twitter in 2019 as a project started under the company's former CEO, Jack Dorsey. Its goal was to give users more control over moderation. Bluesky has been an independent company since 2021 and is a decentralized social network.

Bluesky is powered by the "AT Protocol" (Authenticated Transfer Protocol), which means that while Bluesky operates the main server, anyone can create and run their own server that can work with Bluesky. This allows users to choose different providers while maintaining a unified social network experience. Crucially, this also means that users can add their own moderation policies on top of Bluesky's built-in moderation systems.

"The decentralized moderation policies of Bluesky, which allow for more proliferation of political content on the platform, could be exacerbating this phenomenon," said Dick of Bluesky's left-leaning user base, "as Democrats and liberals create a sort of tribal safe space for their views and conversations."

Beyond politics, the survey revealed an optimism gap between the two platforms regarding AI. Bluesky users appear to be significantly more bullish on the technology, with 62% believing that AI will have at least a somewhat positive impact on the quality of their lives over the next decade, compared to 51% of Threads users.

Overall, More Bluesky users are likely to use platforms like YouTube, TikTok, and X every day compared to Threads users who gravitate toward Facebook and Instagram, which are both owned by Meta.