Decline in Metaverse Gear Sales: Is the Virtual Reality Boom Over?

According to a new report from CCS Insight, the sale of Metaverse gear, virtual reality, and augmented reality devices has fallen significantly, quoting a 12% decrease in sales. This data is a massive problem for technology companies that have invested and are investing in the Metaverse.

CNBC’s data shows that sales of virtual reality headsets took a hit by 2% from 2021 to a round figure of around $1 billion. The Metaverse gamble by Mark Zuckerberg’s company Meta has yet to see returns as their long-term goals of consumer acceptance of Metaverse has yet to peak.

Meta has lost over $30 billion in pursuing the Metaverse, and its virtual worlds, such as Horizon Worlds, have received a lot of criticism from users for bugs and instability. Zuckerberg designed the Metaverse to one day get people to live in a virtual environment using VR gear such as Meta quest 2.

Unfortunately, meta quest 2, an analyst’s pick for the leader in the VR industry, saw a dive in sales this year, which may be due to the rush experienced on their debut last year. Ben Arnold, a consumer analyst, believes that the gear had a marvelous 2021, which might be why it has slowed down sales this year.

Factors Contributing to the Fall

The pressure of inflation played a crucial role, with consumers leaning toward careful spending. According to Marina Koytcheva from CCS Insight, the high inflation rates are responsible for low sales because people who would have bought the headsets this year have changed their minds. Marina also notes that businesses are cautiously approaching investments in the Metaverse due to high inflation rates.

Leo Gebbie from Insight says that Meta’s pricing and price hike of the headsets was unexpected, given that the company originally sold the headsets at a low price to increase sales and users. Leo believes the price tag differs from what Metaverse enthusiasts are willing to pay. This development spells out danger for the Metaverse and its investors.

A Ray of Hope

If you have heard about Apple’s mixed reality, you know it is a big deal. The premium product from Apple will cost upwards of $2,000 and will have ten cameras to improve the user experience. According to Mark Gurman, the headset will be available in 2023 and feature a new operating system called realityOs, and some apps on the app store, such as maps and messages.

Tim Cook, the CEO of Apple, is not convinced that people understand the Metaverse and if they will want to live out their lives in the virtual space. Despite this, Apple hired a software developer with experience in visual effects and can create virtual and augmented reality environments.

Sony’s VR Headset

The PlayStation VR2 is a virtual reality headset from Sony for use with the PlayStation 5 video game console. Sony will release the headset in February, costing $550. However, to use the headset, you will need to have a PlayStation 5 console.

The headset uses the console to power it and provide the processing power necessary for the virtual reality experience. In addition, the headset features improved graphics and tracking compared to the previous generation of PlayStation VR, and it is compatible with a wide range of games and experiences.

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