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21.12.2023 - 17:41 / gamesindustry.biz
Consumer spending on virtual reality content reached $844 million in 2023.
The figure represents a 10% decline year-on-year, according to a new report from analytic firm Omdia.
Omdia attributed the dip to global inflationary pressures and the underperformance of headsets such as Meta Quest 3, PSVR2, and Pico 4.
"Meta's limited AR content and the $500 price tag on Quest 3 discouraged upgrades and failed to attract new adopters. PSVR2 lacked compelling releases, leading to slower adoption than its predecessor, worsened by Sony's shift in focus towards expanding PS5 peripherals," said the report.
"Meanwhile, ByteDance's scaled-back VR ambitions significantly affected Pico, resulting in canceled projects and a lack of competitive VR content, despite well-received Pico 4 hardware."
Senior principal analyst at Omdia, George Jijiashvili, said that new hardware in 2024, such as the Nintendo Switch 2, mid-generation system refreshes, and the Steam Deck OLED, will possibly make headsets a lower priority for consumers.
In addition, tech firms focusing on AI and lack of investments in VR (except Meta) are poised to deepen the downturn of consumer spending on VR content.
Still, Omdia's report noted that the active installed base for VR headsets sits at 23.6 million in 2023.
Meanwhile, VR headset sales hit 7.7 million units in 2023, a 24% decrease compared to those sold in 2022.
Looking ahead, Omida projects sales declines of 13% in 2024 and 2025 for unit sales. However, it also estimates that consumer spending on VR content will hit $2.3 billion by 2028.
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A Diablo 4 player spent an entire month grinding for every ultra-rare item in the game, and now they're 'retiring.'
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Square Enix president Takashi Kiryu says the company will be “aggressive” in using generative AI technology to create content, including in development and publishing. This not only means more investment in technologies but also a desire to use the tech for all kinds of development, and “create new forms of content” in a balance between product and marketing.
The anticipation for the Consumer Electronics Show (CES 2024) has begun rising. The physical event which will be held in Las Vegas starting January 9 to January 12 is going to bring some of the biggest consumer tech brands together as they showcase gadgets that will be launched in 2024. Apart from that, many startups will also showcase their technologies and products in front of tech enthusiasts, journalists, distributors, and important dignitaries from the tech ecosystem. But what exactly can you expect from the CES 2024 event? Let us take a look.
As big as online gaming has become, 2023 has shown that single player games are absolutely thriving. Whether it’s a sequel that takes what its forebears did and refines or expands the experience further, a game that takes a genre and wrings every ounce of creativity and ingenuity out of it with new ideas, this year has been absolutely fantastic for gamers that like to be left alone in front of the screen.
Regulators in China announced on Friday a wide range of rules aimed at curbing spending and rewards that encourage video games, dealing a blow to the world's biggest games market, which returned to growth this year.
New rules have been laid out by regulators in China that aim to reduce the amount of money gamers spend within video games.
Chinese regulators have announced far-reaching curbs on monetisation and reward systems for online games, in a move that has wiped almost $80 billion from the market value of the world's biggest videogame publisher Tencent and their rival NetEase. Under the new government restrictions, which are pending final approval, online games in China will be banned from giving players rewards for logging in every day, spending money within the game for the first time, or spending money several times consecutively.
Regulators of the Chinese Communist Party have come down hard on several key pieces in the live service model, leading to spiralling shares for major players in the market as investors scramble to assess the damage.
Tencent and NetEase saw almost $80 billion wiped off their market value on Friday after Chinese regulators announced new rules to limit spending in online games.