Global XR Headset Market Declined in Q1 2023 With No New Quest Model

Global XR headset shipments (covering AR and VR headsets) declined 33% YoY in Q1 2023.
Consumers are losing interest in the XR market, as market leader Meta’s Quest series has not been refreshed in over two years.
Quest series has cumulatively shipped more than 20 million units as of Q1 2023, with the Quest 2 contributing 18 million units.
The newly released PSVR2 garnered significant attention from the video-gaming brand’s user base, leading Sony to capture the second position in Q1 2023.
2023 is the year of next-generation VR headset launches. The PSVR2, E4 and Vive XR Elite are some of the prominent launches so far. And then, of course, Apple has announced its Vision Pro.

London, San Diego, New Delhi, Beijing, Buenos Aires, Seoul, Hong Kong – July 5, 2023

Global extended reality (XR)headset shipments (covering augmented reality (AR) and virtual reality (VR) headsets) declined 33% YoY in Q1 2023, according toCounterpoint Research’sXR Model Tracker. Consumers are losing interest in the XR market, as Meta’s Quest series, the market leader, has not been refreshed in over two years. The performance of the newly launched next-generation Sony PSVR2 (PlayStation VR2), along with the price reduction of the Quest 2 by Meta, saved the global market from a more drastic decline.

元was the best-selling global XR headset brand during Q1 2023 with the Quest 2 as its long-time best-performing VR headset. The Quest series has cumulatively shipped more than 20 million units as of Q1 2023, with the Quest 2 contributing 18 million units. The Quest 2 continues to sell relatively well and to maintain its momentum, Meta is making the headset more affordable by lowering its price after last year’s price increases. Besides,元has announced the launch of Quest 3 later this year, which is expected to further boost sales and transition from the success of Quest 2.

Nevertheless, Meta’s shipment share fell to 49% in Q1 2023, the lowest since the launch of Quest 2 in Q4 2020. This decline was a result of the highly anticipated launch of Sony’s successor to its 2016 headset PSVR. The newly released PSVR2 garnered significant attention from the video-gaming brand’s user base, leading Sony to capture the second position in Q1 2023 with a 32% market share. Besides, the PSVR2 shipped 1.2 times more units than its predecessor in the first quarter of its launch.

Pico and DPVRtook third and fourth places with market shares of 7% and 6% respectively. While Pico’s performance had earlier improved after its acquisition by TikTok’s parent company ByteDance, a lack of attractive consumer use cases and limited high-quality content resulted in a 38% decline in its shipments in Q1 2023.

DPVR’s shipment volumes are primarily driven by its enterprise partners, with whom it has established strong relationships. These partners regularly place orders for several thousand units. However, delays in orders from education sector partners led to a 40% decline in DPVR’s shipments in Q1 2023.

2023 is the year of next-generation VR headset launches.Sony’s PSVR2, DPVR’s E4 and HTC’s Vive XR Elite are some of the prominent launches so far this year. Having advanced technology and features, these headsets are retailing at around or over $500, which will likely negatively impact their sales potential. It will also depend on how much value consumers perceive these VR headsets are delivering.

And then, of course,Apple has announced its Vision Pro, which has set a new high bar for consumer XR devices, though at a price above most people’s reach. Apple will nevertheless cast a shadow over the market ahead of the Vision Pro’s actual release.

Background:

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Karn Chauhan

Peter Richardson

Harmeet Singh Walia

Follow Counterpoint Research
press(at)www.arena-ruc.com

Global XR (AR & VR Headsets) Market Share: By Quarter

Global XR (AR & VR Headsets) Shipments Market Share: By Quarter

Published Date: June 14, 2023

A repository of quarterly data for the global XR (AR & VR Headsets) shipments market

Note: Rankings provided are based on the standings for each quarter. The chart includes the top three brands and “others” for each quarter.

Brands	第一季度 2022
元	77%
Pico	8%
DPVR	7%
Others	7%

Brands	第二季 2022
元	66%
Pico	11%
DPVR	9%
Others	12%

Brands	Q3 2022
元	66%
Pico	11%
DPVR	11%
Others	10%

Brands	Q4 2022
元	80%
DPVR	7%
Pico	7%
Others	6%

Brands	第一季度 2023
元	49%
Sony	32%
Pico	7%
Others	6%

Source:AR & VR Headsets (XR) Quarterly Model Shipments Tracker: Q1 2020 – Q1 2023

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(Use the buttons below to download the complete chart)

Highlights:

XR headset shipments declined 33% YoY in Q1 2023. Consumers are losing interest in the XR market, as Meta’s Quest series, the market leader, has not been refreshed in over two years.
The performance of the newly launched next-generation Sony PSVR2 (PlayStation VR2), along with the price reduction of the Quest 2 by Meta, saved the global market from a more drastic decline.
Quest series has cumulatively shipped more than 20 million units as of Q1 2023, with the Quest 2 contributing 18 million units.
元’s shipment share fell to 49% in Q1 2023, the lowest since the launch of Quest 2 in Q4 2020. This decline was a result of the highly anticipated launch of Sony’s successor to its 2016 headset PSVR.
2023 is the year of next-generation VR headset launches. The PSVR2, E4 and Vive XR Elite are some of the prominent launches so far. And then, of course, Apple has announced its Vision Pro.

WATCH: AjnaLens VR Training – Teleporting Trainees to Job Site

For a more detailed AR & VR headsets (XR) shipments tracker, click below:

This is a comprehensive database of Extended Reality (XR) headset model level shipments by quarter including retail price and 30+ specifications and features. It covers tethered as well as standalone Virtual Reality (VR) and Augmented Reality (AR) headset models. We are tracking 35+ XR brands and 70+ headset models by memory variants.
Covers 99% of the global market
Data:Model level shipments of XR headsets including retail price, specs, and features.
Time Period:第一季度2020 – Q1 2023

For detailed insights on the data, please reach out to us atsales(at)www.arena-ruc.com. If you are a member of the press, please contact us atpress(at)www.arena-ruc.comfor any media enquiries.

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PlayStation VR2 Review: Great Experience But Tough Competition in Store

PSVR2 provides a better user experience than its predecessor by implementing new rendering and eye-tracking technology, better display and haptic feedback in the headset.
Factors limiting take-up could be superior competitive offerings, pricing, lack of PC compatibility and a wired-only option significantly impacting experience in popular game segments like fitness.
Any inability to address these factors could lead to a comparatively limited game portfolio, which would impact the platform’s long-term growth potential.

Sony’s new PlayStation VR2 (PSVR2) is a tethered VR headset designed for its PlayStation 5 (PS5) gaming console. The headset aims to provide immersive and realistic VR gaming experiences on the PS5. It has a single cable connection to the console and a built-in camera for tracking. It also comes with two sense controllers that have adaptive triggers and haptic feedback. The PSVR2 has anOLEDdisplay with a resolution of 2000×2040 per eye, refresh rate of up to 120Hz and a field of view of 110 degrees.

PSVR2’s features and advantages: Enhanced VR gaming experience

The PSVR2 incorporates foveated rendering, which leverages eye-tracking to render only those areas of the screen that the user is directly looking at, resulting in less detailed peripheral vision. This approach can significantly enhance performance, reduce computing power usage from theSoC, and decrease system costs. As a result, this technology is expected to become a standard feature in future VR headsets.
The PSVR2 delivers an even more engaging and true-to-life gaming experience compared to its predecessor. This is made possible by its advanced OLED display that boasts a higher resolution and wider field of view (FOV), along with a faster refresh rate that minimizes motion sickness and blur.
The PSVR2’s built-in cameras eliminate the hassle of external sensors and cables. Furthermore, the controllers of the PSVR2 come equipped with haptic feedback and vibration that realistically simulate tactile sensations.
The PSVR2 still employs a wired connection, but the cable has been designed to help reduce the weight of the headset and improve comfort during use. This approach can also bring cost savings and enable the PS5 chip to be fully utilized, unlike most all-in-one VR headsets that may have to sacrifice image quality to prevent overheating and reduce power consumption.

PSVR2 falls behind next-gen VR headsets in key areas

The PSVR2 may not be able to compete with the performance and features of next-generation VR headsets, which offer higher resolution, wider field of view, eye-tracking and wireless streaming.
The PSVR2 is equipped with an OLED display paired with Fresnel lenses, which can cause various discomforts such as smaller sweet spots (aka eye box) and “god rays”. The sweet spots in a VR headset are the ideal position to get the best visual quality by keeping the eyes directly behind the center of the lenses.
The PSVR2’s OLED display is not immune to the Mura effect, which is a common issue in OLED displays but could be fixed by calibration and compensation techniques. The Mura effect causes irregularities in brightness and color across the screen, resulting in an uneven appearance, particularly in darker scenes.
In contrast to the Quest Pro or Pico4, which have integrated color cameras to enable the colorvideo see-through (VST)functionality, the PSVR2’s black-and-white VST is limited to the use for safety, preventing its application in other areas, such as MR applications, with greater potential for interaction within the surrounding physical environment. This limitation may impact the system’s ability to offer more immersive experiences.

A pricey VR experience with limited game library and compatibility

The PSVR2 may not have enough original or exclusive games to justify its price and investment, especially for gamers who are looking for a diverse and immersive VR experience.
The PSVR2 is not backward compatible with PSVR games, meaning that it cannot play the existing library of VR games for the PlayStation 4. However, some PSVR games will receive PSVR2 ports or free upgrades.
The PSVR2 comes with a hefty price tag of $549, which may discourage some prospective buyers who have already paid $499 for the PS5 console. Besides, the PSVR2 requires a PS5 console to function, which restricts its compatibility and availability compared to standalone or PC-based VR headsets.
The PSVR2 presents exceptional and thrilling possibilities for VR gaming enthusiasts. With its exclusive games like Horizon: Call of the Mountain, Resident Evil 8 and Gran Turismo 712, the PSVR2 showcases its abilities and appeals to PlayStation fans. In addition, the PSVR2 boasts innovative features such as haptic feedback, adaptive triggers and headset rumble, which greatly enhances the immersion and interactivity of VR gaming.
SONY’s decision to only allow the PSVR2 to connect with the PS5 has indirectly reduced the potential for the headset’s sales. Besides, the PSVR2 is unable to access other VR resources, such as VR movies or the vast library of games available on Steam, via a PC or other consoles.

Conclusion

The PSVR2 attempts to strike a delicate balance between cost-effectiveness and exceptional performance, boasting advanced features like foveated rendering and haptic feedback, as well as a higher resolution OLED display and wider field of view. It does encounter challenges and limitations, such as its steep price point and inability to run PC VR games and applications. The headset may also signal the end of an era for staunch supporters of tethered VR headsets. Ultimately, while the PSVR2 is able to extend the lifespan of VR on the PlayStation console, it falls short of branching out into new markets or unlocking the potential for additional VR applications in the future.

For more information, please refer to our forthcoming evaluation report on the PSVR2.

More Than 1 Million XR Headsets Shipped in China in 2022, Pico Number 1

XR shipments crossed 1.1 million units in China in 2022.
VR remains the dominant segment, contributing more than 95% to overall shipments in 2022.
Pico is the number one brand with a shipment share of 43%, followed by DPVR at 36%.
iQIYI, HTC and NOLO, each captured a single-digit share.

London, San Diego, New Delhi, Beijing, Buenos Aires, Seoul, Hong Kong – March 15, 2023

Extended Reality [XR: Augmented Reality (AR) and Virtual Reality (VR) headsets] shipments crossed 1.1 million units in China in 2022 according toCounterpoint Research’s XR Model Tracker. VR remains the dominant segment within XR, contributing more than 95% to overall shipments in 2022. The Chinese market has considerable untapped potential but is growing slowly because available headsets do not offer enough value in the consumer domain for mass consumption.

而消费市场没有看到史ft, volume growth was produced by enterprise deals, mostly in the education and training sectors. The potential for further volume growth is limited in the enterprise segment which remains niche as the currently available headsets are not yet advanced enough to offer enticing use cases. So, brands have started to focus more on the consumer segment, particularly gaming. However, Chinese brands are offering few and mostly simpleVRgames. Brands must develop high-quality games to increase consumer traction.

Pico is the number one brand in China’s XR market with a shipment share of 43% in 2022, followed by DPVR at 36%. iQIYI, HTC and NOLO, each of which captured a single-digit share, also made it to the top five.

Pico, since its acquisition by TikTok’s parent, ByteDance, has gained greater global as well as local prominence. The additional financial, human and soft resources that ByteDance is pouring into Pico helped it to become a major player. Since the acquisition, Pico’s strategy has been to establish itself as a major player in the consumer XR segment. For this, it has priced its recent Pico 4 headset at close to $400, similar to元’s Quest 2.

DPVR shipped the next highest number of XR headsets in China and is the biggest player in the enterprise segment. Existing partnerships and growing regional prominence will ensure a healthy growth rate for DPVR, but it has a limited opportunity for volume growth in the enterprise segment. It is therefore betting big on its E4 gaming headset.

iQIYI, with a focus on VR content and streaming, took the third spot on the list while HTC’s volumes continued to be driven by Vive Flow. However, HTC is facing difficulty to sell its headsets owing to their high price points. NOLO also made it to the top five list thanks to its consumer-grade headsets targeted at gamers.

中国市场有很大的本土控制基础ent producers who benefit from a largely common language. We expect these players to increasingly invest in content for VR leading to a virtuous circle of increasingly capable hardware supported by content from multiple producers. The adoption of XR in sectors ranging from education and healthcare to industrial and supply chains will also enable more holistic growth represented by both the consumer and enterprise segments.

China is also expected to benefit from the early adoption of 5G since telecom operators see VR content as a driver of data consumption.

Background:

Analyst Contacts:

Karn Chauhan

Follow Counterpoint Research
press(at)www.arena-ruc.com

OLEDoS: Technological Breakthrough for AR/VR Devices

With the time spent on console games, home entertainment and online education increasing against the backdrop of COVID-19, AR/VR devices are drawing more attention. Development of a killer consumer application is the key to theXR market’s growth. But prior to that, improvements are needed on the hardware side. Technical barriers and inconvenience in wearing AR/VR headsets remain. Therefore, R&D needs to be ramped up in this direction to minimize limitations in use.

Limits to AR/VR displays

AR / VR耳机应该永远不够好ive experience. Also, they should be light in weight so that they can be worn for a long time. Further, AR/VR devices released so far may cause eye strains due to the low resolution of the displays. Also, low refresh rate delays screen updates, causing dizziness just by using it for a short time.

Technical requirements for AR/VR displays

Fine Pixel Size
High Refresh Rate
High Resolution

AR/VR display must first be made to a very fine pixel size for accurate color and image reproduction. Also, a high refresh rate is important for AR/VR displays. Smartphones must have a high refresh rate of at least 120Hz to reduce motion blur on video, but even the most recent AR/VR devices, like the Oculus Quest 2, have a 72Hz refresh rate, which is far short and must be at least 120Hz. Resolution is also important. The average resolution of OLED smartphones is 550 ppi but AR/VR devices require about 3,500 ppi because they feature near-eye displays.

OLEDoS: Solution for ultra-high resolution

Source: LG Display Blog

OLEDoS (OLED on Silicon) is a display panel that typically has a diagonal length of less than 1 inch and meets the 3000 ppi-4000 ppi resolution criteria of AR/VR device displays. Existing OLED displays use Low-Temperature-Poly-Silicon (LTPS) or Oxide TFT based on glass substrates. But OLEDoS uses silicon-wafer-based CMOS substrates. Using silicon substrates, ultra-fine circuit structures typically used in semiconductor processes can be reproduced, which in turn lead to the creation of ultra-high-resolution OLEDs when organic matter is deposited on them.

Specifications of OLED and OLEDoS

Source: Sony / Korea Science

OLEDoS is also called Micro OLED in the market and features high efficiency, high luminance, infinite contrast, fast response and long LED life compared to OLED. Because the size is smaller than 1 inch, the user does not see the panel directly but sees the enlarged image through the optical lens. When used on AR/VR equipment, it shows high resolution in a small, lightweight wearable device.

Apple is also likely to install OLEDoS in its second-generation AR/VR product which is expected to enter the market around 2025. In addition, it is expected that augmented reality that meets the above technical conditions will be implemented as Meta is likely to install OLEDoS in its Meta Quest 3 device, expected to be released in 2023.

OLEDoS expected to achieve 28% share in 2025

Currently, OLEDoS faces high market entry barriers. This is because the technology is yet to ripen fully. The cost of production of the semiconductor substrate remains high even as the related value chain is yet to be completely formed. However, with Apple and Meta expected to introduce OLEDoS-based AR/VR equipment in the next two to three years, many manufacturers would actively adopt OLEDoS. More production will result in a lower per-unit cost, prompting more demand and increasing the share of OLEDoS to nearly one-third of the market by 2025.

Next big supplier of AR/VR displays

It is expected that two OLEDoS displays will be installed inside Apple’s first headset, and Sony will be the first supplier this time. LG Display is expected to supply general OLEDs that are applied to the external indicators. In the long run, however, Apple is expected to choose LG Display as a supplier of OLEDoS over Sony. Although Sony’s technology is somewhat ahead now, the company has its own gaming console, making it a potential competitor to Apple in the XR market, where having a killer application is the key. Once Apple enters the XR market, it is expected to grow at a rapid pace while Samsung Display is expected to catch up with arch-rival LG at a rapid pace. Once again, we will be able to see the fierce race between SDC and LGD in the XR market.

元Quest 2 First VR Headset to Cross 10 mn Shipments

元Quest 2 (formerly Oculus Quest 2) cumulatively shipped more than 10 million headsets by the end of 2021, according toCounterpoint Research’s XR (AR & VR headsets) Model Tracker. The US contributed 70% to Quest 2’s shipments followed by Europe with roughly 20%. As a popular tech gift for children and grandparents, half of its shipments occurred during theholiday season in the last quarter of 2020 and 2021. Meta succeeded by offering great hardware at a reasonable and competitive price starting at $299. It also focused on offering continuous improvements through monthly software updates.

We believe Meta’s next major Quest device since 2020 will be launched in 2023. It makes sense, as currently there is no significant hardware advancement in VR headsets for the affordable segment. Also, the consumer is holding on to VR devices longer.

While Quest 2’s cumulative shipments are 1.5 times higher than its next biggest competitor,Sony PSVR,it will face more competition from the highly anticipated PSVR 2, as well as the devices that DPVR and Pico launch in 2022. We saw an increase in DPVR’s presence in overseas markets in 2021 and it will continue to expand in 2022. Since acquiringPico, ByteDance, the parent of TikTok, is pouring a lot of resources to strengthen the Pico brand with an increased focus on content as well as through faster staff hiring, superior consumer VR hardware and competitive pricing.

We estimate that Metawill ship nearly 12 million VR headsets in 2022, including the upcoming Project Cambria product, which will be launched later in 2022 to showcase Meta’s potential capabilities. However, more than 80% of the volume will be driven by Quest 2, which will be available throughout the year at a price point that has proven to be a sweet spot for VR headsets.

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Insights Tag:VR Headsets

Global XR (AR & VR Headsets) Market Share: By Quarter

Global XR (AR & VR Headsets) Shipments Market Share: By Quarter

A repository of quarterly data for the global XR (AR & VR Headsets) shipments market

Highlights:

WATCH: AjnaLens VR Training – Teleporting Trainees to Job Site

相关的帖子

PlayStation VR2 Review: Great Experience But Tough Competition in Store

PSVR2’s features and advantages: Enhanced VR gaming experience

PSVR2 falls behind next-gen VR headsets in key areas

A pricey VR experience with limited game library and compatibility

Conclusion

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OLEDoS: Technological Breakthrough for AR/VR Devices

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元Quest 2 First VR Headset to Cross 10 mn Shipments

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Global XR (AR & VR Headsets) Shipments Market Share: By Quarter

A repository of quarterly data for the global XR (AR & VR Headsets) shipments market

Highlights:

WATCH: AjnaLens VR Training – Teleporting Trainees to Job Site

相关的帖子

PSVR2’s features and advantages: Enhanced VR gaming experience

PSVR2 falls behind next-gen VR headsets in key areas

A pricey VR experience with limited game library and compatibility

Conclusion

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