Meta Platforms Inc. (META) unveiled its latest virtual reality (VR) headset Thursday, just days before Apple Inc. (AAPL) is expec𒉰ted to jump into the ring wit🌳h its own augmented reality headset.

The new headset, called the Quest 3, will be priced starting at $499 and will feature "high-res color mixed reality" technology, according to an announcement from CEO Mark Zuckerberg on Instagram. The headset is expected to be almost twice as thin as its predecessor, 2020's Quest 2, which cost $299. Meta is expected to provide more details about the Quest 3, including its official launch date, at its Connect conference in late September.

The virtual reality space is becoming increasingly competitive, with Meta competing against Playstation-maker Sony Group Corp. (SONY), TikTok-owner ByteDance, and, soon, Apple. The iPhone ma෴ker is expected to unveil its own augmented💫 reality headset called Reality Pro at its annual developer conference next Monday. The headset is anticipated to be priced at about $3,000 and. will integrate with Apple's other devices.

Still, the VR tech market is small relative to smartphones and other gaming tech. Fewer than 9 million VR and AR headsets were sold in 2022, with Meta accounting for about 80% of sales. Meta's Quest 2 model is currently the most popular VR headset on the market, likely making up the majority of the 20 million headsets the company says it had sold as of March.

Meta's Reality Labs unit, responsible for its VR and AR technologies, reported an operating loss of almost $4 billion in the latest quarter. The segment generated $339 million in revenue, a 50% year-over-year decline amid a dropoff in headset demand.

♕ Meta shares w🎃ere up 1.5% midday following the announcement.