Sony Group Corp. has paused PSVR2 headset manufacturing owing to a backlog of unsold devices, according to sources, which raises questions regarding VR's appeal.
Since its debut, sales of the PSVR2 (priced at $550) accessory for the PlayStation 5 have been dropping, causing supplies to accumulate, sources said, seeking anonymity. Sources say Sony has made over 2 million pieces of the product released in February 2023, as reported by Bloomberg.
IDC tracks store deliveries and says PSVR 2 shipments have fallen each quarter since its introduction. The sources said Sony's supply chain had an excess of assembled gadgets. Francisco Jeronimo of IDC expects the VR industry to return in the coming years, particularly with Apple Inc.'s expected entrance. "We forecast the VR market to grow on average 31.5% per year between 2023 and 2028," he said.
Sony and Meta Platforms Inc., both virtual reality industry leaders, have struggled to recruit enough content and entertainment developers. Apple's Vision Pro headset launched without Netflix or YouTube applications, which caused issues.
Sony's closure of PlayStation London, which developed virtual reality games, indicates a further restructuring. The shutdown impacted in-house firms, including Guerrilla Games, which was developing "Horizon Call of the Mountain," a PSVR 2 exclusive in the Horizon series.
What Could Be The Reason For Sony's Decision?
VR hardware's high price and lack of games have hindered its adoption, according to Macquarie analyst Yijia Zhai, who observed that VR game creation costs are far higher than regular titles, discouraging users from buying VR gear.
PSVR 2, unlike its predecessor, provides just the Horizon Call of the Mountain package. While the first packages gave novices rich VR experiences, the current offering lacks the quirky charm and wide appeal required to entice new users, per GamesRadar.
Besides Horizon Call of the Mountain, PSVR 2 supports other AAA and Resident Evil games and many lesser games. At $550, the headgear costs more than the PS5, raising expectations, according to The Verge.
The lack of package alternatives highlights the need for more diversified games for various audiences. Since its launch, PSVR 2 has had a growing library of games, but Sony's strategic mistakes and lack of exclusive first-party titles have left prospective customers doubting its worth.
Sony Needs to Level Up PSVR2
Unlike its predecessor, PSVR 2 users have restricted access to free games and subscription-based content. Given the competition, platforms like Meta Quest provide sophisticated subscription services and more cheap titles; this lack is noticeable.
The PlayStation VR 2's PC compatibility is welcome, but Sony's delay raises doubts about its strategic thinking. Nevertheless, amid the PSVR 2 production pause report, Sony remains committed to boosting the games available on the PSVR2 headset and announced plans in February to test the viability of PSVR 2 with PC titles. Sony must improve its VR products to compete with the Meta Quest 3 and Apple Vision Pro and the rumored upcoming Samsung VR headset.
