VR headset, augmented reality glasses sales overview:
- Who: Sales of virtual reality headsets and augmented reality glasses dropped by nearly 40% in 2023, according to data from research firm Circana.
- Why: Circana attributes the decrease in sales to a lack of standalone VR headsets and a breakthrough app.
- Where: The data includes consumers nationwide.
Sales for virtual reality (VR) headsets and augmented reality (AR) glasses dropped by nearly 40% in 2023, according to data from research firm Circana.
The almost 40% drop, totalling $664 million in sales, was a sharp increase from a 2% drop in 2022, when sales of virtual reality headsets and augmented reality glasses topped out at $1.1 billion, CNBC reports.
Ben Arnold, a Circana consumer technology analyst, attributed the rough sales year to a lack of new standalone headsets and related apps that have not broken through and gained mainstream appeal, according to CNBC.
American consumers’ seemingly growing disinterest in virtual reality technology comes amid a continued push by Meta to develop its so-called metaverse, with the social networking company reportedly spending billions of dollars per quarter on the project.
The VR market received a lift during the holiday season thanks to the October release of Meta’s Quest 3 headset, with sales of VR headsets reportedly hitting $271 million during an eight-week period during October and November, an increase of 42% from the same period in 2022, CNBC reports.
Meta’s Reality Labs has lost around $25 billion since beginning of last year
Meta’s Reality Labs unit, which develops the company’s VR and AR tech, reportedly experienced $3.7 billion in losses compared to only $210 million in sales during last year’s third quarter, with the division having now lost about $25 billion since the start of 2022, according to CNBC.
In a blog post published Dec. 18, Meta CTO Andrew Bosworth, who runs Reality Labs, referred to the metaverse and artificial intelligence as the company’s “long-term bets” on the “technologies of the future.”
“The stage is set for new kinds of devices that can perceive, understand, and interact with the world around us in ways that have never been possible before,” Bosworth writes in the blog post.
While Meta is the current leader in the VR market, other emerging players include Apple and Sony, with the companies recently releasing the Vision Pro mixed-reality headset and second-generation Playstation VR2 headset, respectively, CNBC reports.
In 2021, then-Facebook recalled four million of its Oculus Quest 2 Virtual Reality Headsets over concerns they caused consumers to suffer adverse health effects, including rashes, hives, swelling, burning and bumps.
Have you purchased a VR or AR headset? Let us know in the comments.
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One thought on VR headset, augmented reality glasses sales drop nearly 40% in 2023
I have purchased a Meta Quest 3 VR headset. I am considering purchasing another one. Your article is making me think the first purchase was a mistake and I should have maybe gone with tried and true Sony. Would love to know more about my MQ3 purchase before I buy the 2nd one.