Mark Zuckerberg said the device, priced at $199, would be the “most accessible VR experience ever”.
Sales of the company’s VR hardware have been slow since launching the first Oculus Rift headset in March 2016.
"If VR doesn't go mass market at this price point, I think we can conclude that it never will,” said John Delaney, an analyst with IDC.
The existing budget way to get Facebook's VR is the Samsung Gear VR at $129 - but that requires a high-end Samsung smartphone in order to work.