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Sony has ceased the production of its PS VR2 virtual reality headset due to an accumulation of unsold inventory.
Sources close to the situation told Bloomberg that Sony Group has temporarily halted production of its PS VR2 virtual reality headset. The company aims to reduce a surplus of units that have yet to find buyers, raising questions about the current consumer interest in VR technology.
Despite launching over 2 million units of the PS VR2 since its February launch last year, demand for the $550 PlayStation 5 accessory has dwindled. Sony now has a significant stockpile, revealed insiders who wished to remain anonymous.
Bloomberg: "Sony Group Corp. has paused production of its PSVR2 headset until it clears a backlog of unsold units, according to people familiar with its plans, adding to doubts about the appeal of virtual reality gadgets."https://t.co/tHSl7atthF pic.twitter.com/92w32DohiJ
— Wario64 (@Wario64) March 18, 2024
Market analyst IDC notes a quarterly decrease in PS VR2 shipments since its market introduction, indicating a wider issue within Sony’s distribution network. Nevertheless, IDC analyst Francisco Jeronimo is optimistic about the VR sector’s future, predicting significant growth spurred by new entrants like Apple.
“The VR market is expected to expand at an annual rate of 31.5 percent from 2023 to 2028,” Jeronimo mentioned.
Facing challenges similar to those faced by Meta in the VR landscape, Sony’s efforts to populate its platform with enough engaging content have fallen short. This issue is not unique to Sony. Apple’s high-end Vision Pro headset also launched without support from key digital platforms, including Netflix and YouTube.
YOOOO APPLE VISION PRO STANDDDD pic.twitter.com/8qlTCPbgeC
— Ranvir ?? (@Ranvir2612) March 13, 2024
Sony also recently announced the closure of its PlayStation London studio, which is focused on developing VR content. It is a part of broader layoffs that affected other game development teams like Guerrilla Games. These changes reflect the difficulties faced by the VR game development industry.
“The primary barrier to VR adoption remains the cost of the hardware,” Macquarie analyst Yijia Zhai explained.
She pointed out the lack of VR-compatible games as another significant obstacle. Compared to standard titles, the high costs associated with producing VR games deter game developers from entering the space.
However, Sony is not backing down with plans to enrich the PS VR2’s library and introduce support for PC VR games later this year. The company intends to diversify the headset’s uses and potentially stimulate market demand.
