The Quest 3 hasn’t managed to spark the same excitement as the Quest 2 for a variety of reasons.
The price is definitely one of those reasons. Which would make sense why Meta wanted to put out a cheaper version.
The problem is that price isn’t the only factor. The Quest 2 offered something new and exciting for the pandemic era and at a price people could afford. Now that the fad is over, there’s not much that the Quest 3 or 3S is offering to draw people in.
AR experiences haven’t proven to hold interest and there aren’t many games or experiences getting hype from the socials.
So the 3S may get a few people to buy in where their biggest gripe was price, but that could also lead to disappointment and future lost customers if the hardware and software doesn’t show off what makes it better than the Quest 2.
The dedicated VR fans aren’t likely to buy a Quest 3S unless money really is an issue and it’s the best they can afford.