PSVR launched to a lot of excitement and hype, however as the dust settles on Black Friday weekend, PSVR has ultimately turned out to be the biggest loser in retail. Many of us originally feared that VR would be just a gimmick and sales are now starting to suggest that the fad will indeed wear off.
Previously we had reported that research firm Superdata had forecasted PSVR to sell an estimated 2.6 million units by the end of the year, however it seems now they have revised this figure substantially with the forecasted figures sitting somewhere around the 750K mark. Interestingly enough PSVR demand has been at an all-time high with Amazon UK recently selling out and no stock expected until after Christmas. This raises the all-important question of if the demand is there, then why are the sales declining considerably, and that too in a matter of mere months. Well basic economics tells you that demand must be met by supply, and that is where the issue lies. With Sony instead focusing too push the PS4 Pro this holiday season , and offering nearly no PSVR first party deals. In many ways Sony has neglected PSVR’s marketing push , and with nearly next to no deals and a apparent lack of units at retail it is really no surprise that it has under performed to such an extent.
Despite its initial success with games such as Rez Infinite and Robinson the Journey Amongst others the PSVR would fade out over time, but nobody expected that the decline would start merely months after its launch. If anything many of us expected it to be a smash hit at least until the mid of 2017. It reminds me of the time when Kinect and Wii were all the rage and only a few months later everyone had forgotten all about them.
Updated VR forecast via @_SuperData.
(Worldwide, sell-thru units, by device)
Gear VR 2.3M
— SuperJoost (@joosterizer) November 29, 2016
A separate report by Juniper Research claims that virtual reality mediums will grow to $50 million by 2021.
This rapid growth will arise from a widespread adoption of VR by smartphone users, and the high unit prices commanded by headsets for PCs and consoles. The market will be triggered by the launch of PlayStation VR this October, and Microsoft’s Project Scorpio in 2017 – offering compatibility with the Oculus Rift.
“We expect 2017 to be the biggest year for console-based VR revenue growth, as there are several units coming into the market which are not feeling the impact of price competition. This means we will see a rise in [average selling price] across both 2017 and 2018 as the newer models come into the market, and only adjust to each other’s’ presence over the course of a year or two, insulated to a degree by ecosystem lock-in.”
The future might not be as grim for the PSVR , that is if it receives the required marketing push that it deserves. It will be interesting to see how the consoles war heat up once Xbox Scorpio which is also touted to support VR comes into play
Let us know what do you think about PSVR’s fall from grace, and whether it can recover by commenting in the comments section below.