In the United States, the VR market is shriveling, despite Zuckerberg’s best efforts to promote the metaverse

The market for virtual reality (VR) headsets continues its dizzying fall in the United States. Still, Meta has invested billions in the technology, although the company has remained more quiet about it over the past year.

The numbers speak for themselves. According to the analysis firm Circana, sales of VR headsets and augmented reality glasses across the Atlantic have fallen by almost 40% to reach $664 million in 2023. Already last year, they fell by 2%, generating a total of $1.1 billion. Note that the firm established these results based on data up to November 25. The new flagship of the sector leader, the Meta Quest 3, was released in October.

Colossal losses for Meta

Analysts explain this poor performance by the shortage of new standalone headsets that could excite users, as well as the absence of a revolutionary application. For example, the PlayStation VR 2 only captured a smaller market share, as it is directly dependent on Sony’s flagship console.

The catastrophic figures of the VR sector are at odds with Meta’s multiple efforts in the technology. Facebook changed its name to put the metaverse in the spotlight. For now, the billions invested by the social media giant are being questioned by its investors. Its dedicated branch, Reality Labs, has suffered colossal losses.

Meta’s roadmap remains the same. The company assures that its vision is long-term, and that its work will not bear fruit immediately. This year, it focused more on generative artificial intelligence (AI), and is betting on mixing this technology with the metaverse to deploy new uses.

“ It’s not easy to make long-term bets on emerging technologies. It’s not guaranteed to work and it’s certainly not cheap. It’s also one of the most valuable things a tech company can do – and the only way to stay relevant in the long term “, declared Andrew Bosworth, boss of Reality Labs.

Apple, the X factor?

According to analysts, the year 2024 could be a turning point for the VR headset market. A new player, and not the least, will enter it in February: Apple and its Vision Pro.

With its high-end device at $3,499, the Apple brand will initially target a niche audience. Its goal is to develop the technology while allowing developers to become familiar with it. Where the Meta Quest is more focused on games, the Cupertino company promises a lifestyle product, different from its rivals and directly integrated into its ecosystem of applications, devices and OS.

The reception of the Vision Pro could be decisive for the sector, which has been considered promising for a decade without widespread public adoption being noted. The technology is however announced as the next revolutionary product after the smartphone.

Source : CNBC