Sony Group Corp
Despite initial enthusiasm, sales of the $550 accessory for the PlayStation 5 have gradually decreased, leading to a significant stockpile.
Sony, having produced over 2 million units since the headset's launch last February, now faces a decline in shipments each quarter, as observed by IDC, Bloomberg reports.
Sony and Meta Platforms Inc
Similarly, Apple Inc's
Meanwhile, Microsoft Corp
The industry itself is undergoing a period of consolidation, underscored by job cuts and the cancellation of games.
In January, Microsoft announced downsizing 1,900 positions within its gaming divisions.
In February, Electronic Arts Inc
Sony's decision reflects the virtual reality segment's struggle to gain mainstream traction, partly due to high prices and a limited selection of supporting games, exacerbated by the higher costs of developing virtual reality games than traditional titles, limiting the incentive for creators and consumers.
In response to these challenges, Sony is exploring new avenues, such as enabling PSVR2 users to access PC titles, to expand the headset's utility and appeal.
The company's recent closure of its PlayStation London division, responsible for developing virtual reality games, and layoffs at other studios further illustrate the difficulties facing the virtual reality gaming sector.
In February, Sony reported third-quarter fiscal 2023 sales growth of 22% year-on-year to $25.34 billion, versus the analyst consensus estimate of $24.62 billion. Adjusted EPS of $1.99 beat the consensus estimate of $1.65. Sony sold 8.2 million PS5 units in the quarter versus 7.1 million a year ago.
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Price Action: SONY shares traded higher by 2.08% at $89.20 premarket on the last check Monday.
