This Week In XR: Is This A Perilous Moment For VR?

forbes.com/sites/charliefink/2022/11/24/this-week-in-xr-is-this-a-perilous-moment-for-vr

Meta Reality Labs posted a $3.67 billion Q3 operating loss last month, citing slowing sales for the Quest 2. We shall see what happens this Christmas, but the market for consumer VR may be saturated.

Sony’s original PlaystationVR sold a fast five million units after it launched in 2016. Then sales slowed to a trickle. It seems every console owner who wanted one, had one. Analysts estimate the take rate among 117M Playstation 4 owners is around ~5%. If the 195 M gamers in the US are the market for the Quest2, then sales of 10 M units are in the same ballpark.

This is not good news for PlaystationVR2, launching in early 2023. According to Bloomberg, Sony expects to sell more two million units the first year, though there are many fewer compatible Playstation 5 consoles. Pico 4 is already hitting headwinds. It’s owned by China–based Bytedance, owns TikTok, which is dependent on advertising revenue. An expensive consumer launch may be put off.

Meta has lost control of the Metaverse story…

This story appeared first on forbes.com, 2022-11-25.
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