Sony Group has temporarily halted production of its PS VR2 headset in order to address a surplus of unsold units, according to sources familiar with the situation. This decision has raised questions about the market viability of virtual reality devices.
Since its launch, sales of the PS VR2, priced at $550, have consistently declined, leading to an accumulation of inventory. Sources, who requested anonymity due to the private nature of the information, noted that Sony has manufactured over 2 million units of the headset, which was released in February 2023.
Data from IDC reveals that PS VR2 shipments have decreased each quarter following its release, with a notable surplus present within Sony’s supply chain. However, IDC’s analyst Francisco Jeronimo remains optimistic, projecting a resurgence in the virtual reality market in the coming years, particularly aided by Apple’s forthcoming influence. “We anticipate the VR market will experience an average growth of 31.5 percent annually from 2023 to 2028,” he stated.
As a major player in the virtual reality space alongside Meta Platforms, Sony has faced challenges in attracting sufficient content and entertainment creators to enhance its platforms’ appeal. A similar dilemma is impacting Apple’s Vision Pro headset, which launched without specialized applications from major entertainment providers such as Netflix and YouTube.
Requests for comment from Sony were not answered.
Last month, the Tokyo-based company announced the closure of its PlayStation London division, which focused on virtual reality game development. This decision was part of broader layoffs that also affected key in-house studios, including Guerrilla Games, known for its PS VR2-exclusive title, Horizon Call of the Mountain.
Macquarie analyst Yijia Zhai highlighted the high cost of VR hardware as a significant barrier to market growth. “The current lack of games that support VR devices reduces players’ motivation to invest in VR hardware. The scarcity of content is partly due to the significantly higher development costs associated with VR games compared to traditional titles,” he explained.
Despite these challenges, Sony continues to expand the content available for the headset and announced in February plans to enable PS VR2 users to access PC gaming titles.
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