There are a number of possible explanations for Quest 3’s higher retention, and the answer may even be a combination of multiple.
It could be due to the higher quality of experience delivered by the pancake lenses and more powerful chipset. […]
It could also be due to the improved passthrough. […]
There could also be a degree of selection here. People who are more engaged with VR are more likely to upgrade to Quest 3, and people who are willing to spend $500 or $650 on a headset may be more likely to continue to use it than those who paid much less.
It probably is a combination of multiple things, but I can imagine that selection bias is one of the bigger reasons. I wonder how many Q3 buyers are new to VR and how many people already know what they’re getting into.