I think there are two strategic errors worth considering here:
- wireless vs. tethered. Was it really worth it going wireless or was there viability in being tethered?
- the hype around PSVR2 is around the Horizon game, which seems like a legitimately great, full-length game that's both a gameplay and technical achievement. What if Meta had spent their $$$ on funding and shipping titles like it? Beat Saber is the only title of note for them and it's getting very old.
One gets the feeling that Meta only begrudgingly services the gaming applications of Quest, even though it's the only application right now. This is understandable as the console market as a whole is far to small for Meta to be interested in long-term, but one can convincingly argue that the status quo doesn't serve them either: they have a product that doesn't have non-gaming PMF but also are visibly annoyed at being in the gaming market at all.
Their existing customers have no confidence in the platform and have reasonable expectations to be jettisoned the moment they become inconvenient, while the company has no line of sight to another market.
There's a lot of execution here that feels like it puts the cart before the horse. Of course you want a bigger-than-console-gaming market, but you have to excel in your space before you can convincingly lay claim to another. Finding viability (both product and financial) in your current market gives you freedom to pivot later.
The step away from Quest Pro feels incoherent. You don't really see yourself and your product as a gaming product, so you pivot towards MR/productivity use cases... and now you're... pivoting back to gaming? What? Yeah, ok, the Quest Pro was definitely underbaked, but it suggests that the company has no confidence in its own strategy. If you believe in the MR/productivity path, double down and fix the problems with a follow-up. If you believe in VR gaming, then act like it!