IDC: Meta still dominates the VR market

IDC reports(Opens in a new window) that Meta continues to dominate the VR market, but with more competition from products like Playstation VR 2 and the long rumor Apple mixed reality headsetThe research firm says the company formerly known as Facebook could finally lose market share.

VR headset shipments rose 241.6% year-over-year in the first quarter of 2022, according to IDC, although the company notes that supply chain deliveries were limited in early 2021. Many recent buyers have probably wanted to pick up a VR headset for a while.

“Meta has increased its share,” says IDC, “by taking 90% of the market as the Quest 2 continues to be immensely popular and Meta continues to offer more exclusive content while subsidizing hardware.” Its closest competitor, Picoreportedly has only 4.5% of the VR market.

But the research firm notes that Meta is building on past success. Company bought his way to the top of the VR market when it acquired Oculus in 2014, and although it was a prototype a variety of headsets, the bestseller remains a product that was released in 2020

“Meta continues to invest in developing the metaverse, but the strategy of promoting low-cost hardware at the expense of profitability is not sustainable in the long run,” IDC research manager Jitesh Ubrani said in a statement. “The good news is that Meta’s upcoming productivity-focused headset will serve as the entry point for the company’s pivot toward revenue-generating hardware and also help drive up end-user prices across the industry as average retail prices fall. up and the technology improves significantly.”

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The company expects the number of VR shipments to continue to rise in 2022. About 13.9 million units could be shipped this year, according to IDC, which is a 26.6% increase from 2021. But, as is often the case, the company says next year is likely to be even more exciting for the VR market.

IDC says that “2023 will serve as a pivotal year for the VR industry (and by extension augmented reality), as the next generation of headsets from Meta, Pico and Sony are expected to launch along with an Apple headset that is expected to a mixed reality experience.”

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