Shulou(Shulou.com)11/24 Report--

Beijing, December 29 (Xinhua) Mark Zuckerberg's bet on the virtual reality (VR) world is far from paying off after renaming the company to "Meta" and promising to invest billions of dollars in "meta-universe" for more than a year, according to reports.

Sales of VR headsets in the US this year were $1.1 billion as of early December, down 2 per cent from a year earlier, according to the latest data from research firm NPD Group. By contrast, Facebook's advertising business generates the same amount of revenue about every three days.

It was because the advertising business was in the doldrums that Zuckerberg decided to bet on meta-universe, VR devices and related technologies. But global shipments of VR and AR devices so far in 2022 are just 9.6 million, down more than 12 per cent from a year earlier, according to analyst firm CCS Insight.

There is no doubt that these figures cast a shadow over the future of Meta. Meta's share price has fallen by about 2% this year. In fact, Zuckerberg has said before that meta-universe is a long-term bet that it will take up to a decade to become mainstream and could eventually lead to hundreds of billions of dollars in commerce.

Of course, in addition to Meta, there are many other companies that have made big bets on work, education, fitness and sports-related virtual worlds. But so far, Meta's "Quest 2" launched in 2020 has far led the VR market, with competitive products from companies such as Valve, Hewlett-Packard and Sony accounting for only a small portion of the market, according to several analysts.

Sales of Meta Quest headline have declined this year. Ben Arnold, a consumer electronics analyst at NPD Group, said this was mainly because Quest sales were so hot during the 2021 Christmas season at a time when demand for games consoles such as Sony's PS5 outstripped supply.

Sales of VR headsets in the United States were about $530 million in 2020 and doubled in 2021, according to NPD Group. A combination of factors led to a decline in VR headline sales and shipments in 2022.

First of all, Quest 2 has been around for several years and, like any other consumer electronics, has lost some of its appeal as it ages. Although Meta released a new VR headset "Quest Pro" this fall, the device is aimed at enterprises and costs $1100 more than the Quest 2, which deters many VR enthusiasts.

This summer, Meta raised the price of Quest 2 by another $100, citing inflationary pressures. In response, Leo Gebbie, an analyst at CCS Insight, said: "this price increase is surprising because Meta has been willing to sell the product at a lower profit margin in an attempt to promote the popularity of VR and gain higher market share."

Apple has become the focus of attention CCS Insight said in its latest report that 2023 is expected to be another "depressed year" for the VR market due to economic weakness and inflation. CCS Insight analyst Gebe said: "consumers' budgets will be tightened, and non-essential items like the VR are likely to be victims."

Sony's next-generation VR headline "PlayStation VR2" will debut in February with a price tag of $550. Arnold, an analyst at NPD Group, said that while PlayStation VR2 will inject a shot in the arm into the market, it may not have as much impact on the entire VR market as Quest 2. Because Sony's device requires users to have PS5 as computing power, while Quest 2 is independent of other devices.

"potential users of PlayStation VR2 are PlayStation console users," Arnold said. " In addition to Sony, one question of concern is whether Apple will launch a VR head display, as rumored.

Arnold believes that Apple can create a compelling VR headset, along with a software ecosystem. In addition, Apple, as a leader in consumer technology, may bring some sparks to the bleak VR market, making the technology more attractive to the general public.

"if there's one company that can change the VR market overnight, it's Apple. Apple has a large loyal fan base, many of whom are happy to spend a lot of money on technology," said CCS Insight analyst Gebbie. "if Apple is going to launch an VR head display, we expect it to do very well."

According to reports, Apple is building a VR helmet with AR function, which will be released as early as 2023.

Eric Abruzzi (Eric Abbruzzese), research director of research firm ABI Research, believes that Apple may launch a corporate-oriented VR headset that will help attract developers to the community. But Abruzzes also points out that enterprise-grade VR headsets are expensive and can cost thousands of dollars, making it difficult to bring the technology into the mainstream.

"in the first year, Apple's VR may have shipped less than 5 million units," Abruzzes said. "but it's worth mentioning that this will be the first high-profile product launched by a big tech giant."

In fact, what the VR world lacks is killer applications.

Some games have gained popularity, such as Beat Saber, a music rhythm game, and VR versions of some popular games, such as Resident Evil, Abruzzes said. In addition, some users have shown more interest in using VR for fitness activities.

But this is still dwarfed by the console market, where blockbuster games such as FIFA and Call of Duty sell hundreds of millions of copies. Meanwhile, Meta's Horizon Worlds social VR platform is still in the experimental stage. "the only real meta-cosmic product is the Horizon, but it's not doing well at the moment," Abruzzes said. "

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