🕶️ VR/AR sales are in decline

Good morning!

The XR industry may not have sustained the momentum everyone expected after the launch of Apple's Vision Pro, but innovation is still brewing in R&D departments across the sector. All we can do now is wait and see how these developments unfold.

Today’s Topics:

• 📉 Slow Start to a Promising Year: AR/VR Headset Market Analysis

• 🌍 Oculus Rift Creator Palmer Luckey is Developing a New XR Headset

• ❓Why Is It So Hard to Keep Using the Vision Pro?

Reading time: 5min

📉 Slow Start to a Promising Year: AR/VR Headset Market Analysis

According to a S&P Global Market Intelligence report, global shipments of augmented reality (AR) and virtual reality (VR) headsets fell by 22.8% in Q1 2024, with Apple’s Vision Pro contributing to a subdued start 📉. Despite this, potential catalysts for a rebound exist. These are the most important takeaways…

The Details:

• Meta’s Quest headsets remain dominant, with approximately 800,000 units shipped. The older Quest 2 outperformed the newer Quest 3, primarily due to its lower price 🎮.

• Apple’s Vision Pro, a mixed reality headset, shipped around 100,000 units in Q1. Priced at $3,500, its high cost and limited initial use cases have slowed adoption. However, international rollouts and software updates could boost sales 🌍📈.

• Sony shipped 200,000 units of its PlayStation VR2, benefiting from its strong gaming market presence. An upcoming industrial-focused VR headset could further enhance its position 🕹️.

• While commercial-focused headset shipments declined after a strong 2023, businesses may be awaiting the next wave of mixed reality devices, like Sony’s new headset 👀.

Our Thoughts: The AR/VR market faces challenges, but opportunities for growth remain. Meta’s established presence, Apple’s innovation, and Sony’s strategic pivots indicate that the sector could see a turnaround as new products and updates roll out 🚀.

🌍 Oculus Rift Creator Palmer Luckey is Developing a New XR Headset

Palmer Luckey, the visionary behind the original Oculus Rift, has hinted at a new XR headset. The announcement will be made at the Augmented World Expo (AWE) in Long Beach, California, from June 18-20 🌐.

The Details:

• Luckey mentioned on X that he would reveal more about the device at AWE. The new headset promises to be a VR headset "and more" 🕶️.

• The tech world is buzzing with possibilities. Could it be a standalone device like the Quest, an ultimate PC VR headset, or perhaps something entirely new? Luckey has a history of innovation and unpredictability, even having previously created a headset that kills the user if they die in VR 🤯.

• Luckey's recent projects include the ModRetro Chromatic, a Game Boy-style device, showcasing his continued interest in consumer hardware 🎮.

• There’s also speculation that the new headset could be related to his defence company 🛡️, Anduril Industries, which develops XR software for the battlefield.

Our Thoughts: Palmer Luckey's return to XR hardware is exciting news for the industry. Known for his groundbreaking work with Oculus, his new project could bring innovative advancements in VR/AR technology. As we approach AWE, anticipation builds around what could be a significant leap forward in XR headsets 🚀💡.

To better understand Luckey’s extravagant persona and achievements, keep scrolling to the end to find an extensive interview he did with Bloomberg!

❓Why Is It So Hard to Keep Using the Vision Pro?

One year after its debut, Apple's Vision Pro headset remains a marvel of technology. Yet, despite initial enthusiasm, many users, including Lance Ulanoff, a writer from Tech Radar, find it challenging to incorporate the device into daily life 🤔.

The Details:

• The Vision Pro dazzled with its innovative features, offering a seamless blend of VR and AR capabilities. Its design and functionality set it apart from competitors like Meta Quest and HTC Vive 🌟.

• Despite its promise, everyday use reveals some hurdles. The headset's 1.3 lb weight leads to discomfort after prolonged use, and social isolation while wearing it can be off-putting to family and colleagues 👥.

• While consumers understand the value of iPhones and MacBooks, they remain unconvinced about spending on an unproven AR/VR device 💸.

• Apple’s headset has found more success in the enterprise market, with companies like KLM and Porsche adopting it 🏢. However, convincing individual consumers to invest remains a challenge.

Our Thoughts: The Vision Pro is an incredible piece of hardware that demonstrates Apple's innovation in spatial computing. However, for it to become a mainstream success, Apple needs to address the practical and economic barriers that prevent daily use. As WWDC 2024 approaches, there’s hope for updates to enhance the Vision Pro’s capabilities. However, significant changes like price reduction and weight adjustment are necessary to broaden its appeal 🛠️.

Post of the Week