Analysts remain optimistic despite a 33.7-percent downturn in VR shipments

Cal Jeffrey

Posts: 2,918   +763
Staff member

According to analysts at IDC, the VR market has been “artificially propped up” by screenless viewers. Smartphone manufacturers like Samsung, Google, and Alcatel had been bundling viewers with their devices. Unfortunately, the market for these smartphone peripherals has declined by nearly 60 percent from 2Q17. This dip was the most significant contributing factor to the overall decline in headset shipments.

Oculus and Sony moved 102,000 and 93,000 units respectively in the tethered headset category, which was significantly down from 2Q17 figures. Thanks to its new Viveport subscription service and the release of the Vive Pro, HTC was able to maintain momentum moving 111,000 units. However, tethered headsets netted a 33.7-percent dip overall in 2Q18.

The reason for IDC’s optimistic VR outlook is primarily due to the trend being set in the standalone market and an uptick in commercial applications.

“Standalone VR headsets grew 417.7% during the quarter, largely due to the global availability of the Oculus Go/Xiaomi Mi VR, which managed to ship 212,000 headsets,” said IDC.

Additionally, even though companies are focused on marketing to the consumer, commercial applications of VR headsets increased from 14 percent in 2Q17 to 20 percent year over year. The average selling price has also bumped up from $333 to $442.

Analysts believe that adoption in the commercial sector will ultimately drive consumer sales due to the opportunities to try before you buy that will become available.

“One of the major issues with the VR market is that consumers still find it difficult to try a VR headset,” said Jitesh Ubrani, senior research analyst for IDC Mobile Device Trackers. “HTC's recent partnership with Dave & Busters or Oculus' work with schools around the world stand to play an important role in educating and enticing consumers to use VR.”

Mainstream VR content has not quite blossomed yet either. Therefore manufacturers will tap commercial ventures while they wait for content creators and consumers to “catch up.”

“These vendors are moving beyond entertainment-focused B2C deployments to real-world training scenarios in companies of all sizes, all over the world,” said Tom Mainelli, program VP for IDC’s Devices and Augmented and Virtual Reality divisions. “IDC expects commercial buyers to represent an increasingly important percentage of the market going forward.”

As more consumers are exposed to VR through commercial venues, they will be more inclined to see the value of having the technology in their homes.

Permalink to story.

 

Trillionsin

Posts: 1,880   +465
Everyone who wanted one and could afford it already bought one. So... this makes sense.

When prices are more affordable, it will boom. When the device is more comfortable, it will boom. When there's decent VR content, it will boom.

I mean, honestly... all three of these and it will boom... not each individually. I could have typed that out better but I dont care enough to retype it. lmao
 

Puiu

Posts: 4,493   +3,323
TechSpot Elite
My brother recently bought the Oculus Go from a duty free shop and we love it. Cheap and easy to use, how it should have been from the start.

VR is "cute", but fills no real world need (outside the obvious military remote sensing). IMO, VR is a solution seeking a problem.

You are as far from the truth as you can get. VR is a great technology that will eventually become mainstream, it just needs to hit the tipping point in terms of available software and hardware sales.

It will most likely happen when something like the Oculus Go can be bought at around 100$ and high end HDMs at 250-300$. I give it another 1.5-2 years for things to get that cheap and by that time the software should also have matured with big enough library of compelling content.
 
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Jamlad

I would absolutely jump on this bandwagon if I weren't looking at a $1500 outlay for a PC powerful enough to drive the headset, and another $500-800 for the headset. Plus another $200 for the wireless battery.

I can't justify a $2500 investment on this to myself.
 

koblongata

Posts: 402   +219
-Really needs a major new release which you can only fully experience it in VR.
-And then the movement issue, movements in VR ports of traditional big titles like Skyrim leave much to be desired.
-Stop trying to make VR games with state of the art graphics that require top end PCs.
-Wireless built-in, without additional cost.
 
D

DelJo63

What's the 'real world need' of a television?
Changing the topic?

I'm NOT:
  • a gamer, but a programmer
  • a fanboy of the Social Media
I DO use my iPhone primarily for GPS, Email & Texting
My Desktop is for writing papers and to create Powerpoint's

SO; please tell me would assist me/others with other than Games.
 
D

DelJo63

You are as far from the truth as you can get. VR is a great technology that will eventually become mainstream, it just needs to hit the tipping point in terms of available software and hardware sales.
Yes, it's a nice technology but ... for what product area will it "eventually become mainstream" other than gaming?
 
B

bas416

You are as far from the truth as you can get. VR is a great technology that will eventually become mainstream, it just needs to hit the tipping point in terms of available software and hardware sales.
Yes, it's a nice technology but ... for what product area will it "eventually become mainstream" other than gaming?
POV
 

Puiu

Posts: 4,493   +3,323
TechSpot Elite
Yes, it's a nice technology but ... for what product area will it "eventually become mainstream" other than gaming?
Pretty sure that it isn't gaming that it is used most right now. The number of VR videos on youtube is huge right now and it's growing really fast, the same with 360 pictures.

There are a lot of uses for VR and games are only a small portion of it. Simulations of different things are also incredible when they incorporate VR.
 

loki1944

Posts: 527   +360
My brother recently bought the Oculus Go from a duty free shop and we love it. Cheap and easy to use, how it should have been from the start.

VR is "cute", but fills no real world need (outside the obvious military remote sensing). IMO, VR is a solution seeking a problem.

You are as far from the truth as you can get. VR is a great technology that will eventually become mainstream, it just needs to hit the tipping point in terms of available software and hardware sales.

It will most likely happen when something like the Oculus Go can be bought at around 100$ and high end HDMs at 250-300$. I give it another 1.5-2 years for things to get that cheap and by that time the software should also have matured with big enough library of compelling content.

I haven't touched my Rift in 6 months, crummy resolution, dizziness, and perplexingly shallow software/games are all a huge turnoff. Now I'm just hoping AR can step up to the plate.
 

Puiu

Posts: 4,493   +3,323
TechSpot Elite
I haven't touched my Rift in 6 months, crummy resolution, dizziness, and perplexingly shallow software/games are all a huge turnoff. Now I'm just hoping AR can step up to the plate.
It's why I got the Oculus GO. It has an higher resolution and I also don't have that big of a problem with dizziness from using VR (this is very depended on the person just like car sickness).
 
D

DelJo63

IMO & POV, I see nothing compelling here, but then I'm just plain different.
 

cliffordcooley

Posts: 12,696   +6,055
Coming from someone that currently wants nothing to do with VR. What is there not to be optimistic about. Just as soon as hardware requirements and pricing shrink, I'd love to have VR. Current hardware requirements and pricing are way out of reach for the mass majority. And until then content will likely remain limited.
 

MaikuTech

Posts: 1,125   +189
VR is a great technology that will eventually become mainstream, it just needs to hit the tipping point in terms of available software and hardware sales.

220px-Shigeru_Miyamoto_at_E3_2013_1_%28cropped%29.JPG

Hmm reminds me of this, guy he is always pursuing Virtual Reality anything, he almost had a break through but failed with virtual boy and the 3ds platform.
Yet he believes thats the way to go. =/
 

Bubbajim

Posts: 720   +694
Changing the topic?

I'm NOT:
  • a gamer, but a programmer
  • a fanboy of the Social Media
I DO use my iPhone primarily for GPS, Email & Texting
My Desktop is for writing papers and to create Powerpoint's

SO; please tell me would assist me/others with other than Games.

It's not really changing the topic to use another example to question the validity of your concern. What do you mean by a "real world need"? I'm asking because what's the "real world need" or a television, as compared to something like a VR headset?

Of course it won't just be for gaming, if anything, gaming will be the smaller segment of users, just like with PCs currently. I don't understand why you're bringing up being a fanboy of social media, and I'm particularly perplexed that as a programmer you wouldn't be able to think of some more uses for VR than gaming.

Asking (I assume you meant) how VR would help you is silly. I can't tell you how it would help *you*, as I don't know you. As for Others, that I can do:

  • Travel experiences without travelling
  • Product demos, like test drives for cars
  • Giving able-bodied experiences back to disabled patients, and other forms of therapeutic uses like psychedelic or meditative scenarios
  • Social hang-outs to bring together people no matter where they are - think Skype but you're "there" (see VR Chat)
  • Intuitive design and modelling in 3D so you needn't work with 2D representations on a flat screen, modelled using a mouse.

Aaaannnddd the vast wealth of fantasy fulfilment that is gaming, which you're seemingly dismissing out of hand.

I see nothing compelling here, but then I'm just plain different.
Edgy.