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The Reason Behind Sony's Halting Development of the PlayStation VR2 Headset

As the market for virtual reality headsets grows, the PlayStation VR2 was released in February 2023 as an add-on for the PlayStation 5.

PlayStation VR2 Headset Halt Development

The Reason Behind Sony's Halting Development of the PlayStation VR2 Headset

Sony has stopped producing the PlayStation VR2, their current generation virtual reality headset, due to declining sales.

Since the headset's release almost a year ago, stock has been steadily increasing throughout Sony's supply chain, according to people familiar with the company's plans.

With almost 2 million units produced, the PSVR2, which is compatible with the PlayStation 5 platform, has suffered a decline in shipments every quarter since its launch.

Sony currently seems to want to unload its excess headset inventory before making any more.

According to Bloomberg, the primary challenge facing the PSVR2 is the dearth of entertainment and content alternatives available on the platform. Although the helmet works with a select AAA titles, customers' expectations have increased due to its high price.

Teams developing VR products have also been impacted by Sony's recent layoffs, which include the closure of its London Studio and the reduction of its Firesprite studio, according to Bloomberg.

Sony has stated that it plans to test PC support for the PlayStation VR2 in order to solve the lack of content. Although it is anticipated to be released later this year, it is currently unknown whether the headset will work with PC games.

The largest barrier to VR technology's widespread adoption, even in the event that Sony is able to supply new content for the PSVR2, will be its expensive price.

The primary obstacle to VR hardware's widespread use, according to Bloomberg and Macquarie analyst Yijia Zhai, is its expensive cost.

Players won't be as inclined to buy VR gear because there aren't many games available right now that work with VR headsets. The creation cost of VR games is far more than that of traditional games, which explains another reason for the content's limitation, says Zhai.

International Data Corporation (IDC) projects that the VR market will grow by an average of 31.5 percent annually between 2023 and 2028, despite the current obstacles. Analysts claim that the introduction of Apple's Vision Pro headset is contributing to the acceleration of this trend.

There are more Sony products that are not selling well besides the PSVR2. Sony is getting ready to release the PS5 Pro, a new "Pro" device, in an attempt to reverse the downward trend in the platform's sales, which have also been dropping in recent quarters. It is planned for the next Pro console to go on sale around the holidays in 2024.

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