What's Happening?
Meta has announced the spin-out of its VR fitness app, Supernatural, into an independent company named Supernatural Health. This decision comes three years after Meta's $400 million acquisition of the app. The transition will see the app become a separate
entity in Quest's Horizon Store, with plans to rebuild major parts of the technology. The current version of Supernatural will wind down by December 3rd, with a new version expected to launch later in the fall. Subscription prices will increase to $20/month or $200/year, with a 'Founding Member' rate of $180 for the first year.
Why It's Important?
The spin-out of Supernatural reflects Meta's strategic shift away from VR gaming and its focus on other areas. This move could impact the VR fitness market by introducing a more competitive landscape as Supernatural operates independently. The price increase may affect user retention and acquisition, but the promise of new content and features could attract a dedicated user base. This development also highlights the challenges and opportunities in the VR industry, particularly in balancing innovation with financial sustainability.
What's Next?
Supernatural Health will need to establish itself as a standalone entity, focusing on delivering new content and features to retain and grow its user base. The company will likely face challenges in maintaining its competitive edge in the VR fitness market, especially with the increased subscription prices. The response from users and the broader VR community will be crucial in determining the app's future success. Additionally, the industry will be watching how this move influences Meta's overall strategy and its impact on the VR ecosystem.
Beyond the Headlines
The spin-out of Supernatural may have broader implications for the VR industry, particularly in terms of regulatory scrutiny. The initial acquisition faced antitrust challenges from the US Federal Trade Commission, which could influence future mergers and acquisitions in the tech sector. This development also raises questions about the sustainability of large tech companies' investments in niche markets and the potential for more spin-offs as companies reassess their strategic priorities.
