Oculus sales spiked in the lead-up to Half-Life: Alyx

Photo by Amelia Holowaty Krales / The Verge

Despite pandemic-related hardware shortages, Facebook’s virtual reality business exploded at the start of 2020. The company revealed yesterday that it made $297 million in non-advertising revenue during the first quarter of 2020. That was “driven largely by sales of Oculus products,” rather than other products like Portal.

The number is a full 80 percent higher than Facebook’s non-ad revenue in 2019’s first quarter, suggesting that the niche VR industry could be on the rise. But it also reflects a short window of incredible demand, which makes these staggering numbers a little harder to interpret.

Facebook’s Oculus Quest was one of the first VR devices that was both...

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