They are sold at a loss or at best at cost. $200 is possibly extreme, but I couldn't find a BOM estimate for Quest, so it could be much higher than that. This isn't unusual, most game consoles are sold at a loss initially. Also, even though I said "Quest" in my first post I meant "Quest 2" as the original Quest is being phased slowly out, and Quest 2 has sold significantly more units. The current retail price of the 128 GB model is $299, and 256 GB model is $399. So if you're bothered by my price difference assume I was talking about Quest 2 256 GB sold at cost. Regardless, it would cost them more than they want to spend. If you watched the keynote yesterday, Mark Zuckerberg specifically mentioned not wanting to lose too much money on hardware while still selling it at the lowest price that makes sense... Giving away hardware for free is the complete opposite of that strategy.