Sony Halts PS VR2 Production Amid Surplus Inventory
Sony Group Corporation has paused the production of its PlayStation VR2 headset as it contends with a surplus of unsold inventory. Despite having manufactured over 2 million units since its launch in February 2023, sales of the $550 VR accessory for the PlayStation 5 have been lower than expected. A decline in sales has been consistent every quarter since its release, with the company selling nearly 600,000 units six weeks after launch, but only surpassing the one million mark in the first year.
The sluggish sales have been attributed to various factors, including the high cost of VR hardware and a limited selection of games that support VR devices, which also face higher development costs compared to standard titles. In addition to the production halt, Sony has faced other setbacks, including layoffs affecting approximately 8% of its global workforce. Among the affected are London Studios and Firesprite, both heavily involved in PSVR2 development. Moreover, Sony closed its PlayStation London division, which specialized in VR game development, contributing to broader industry concerns regarding content creation for VR platforms.
Sony has not officially commented on the Bloomberg report about the production halt. Meanwhile, the industry continues to see significant investment with predictions of the global value of VR deals reaching $18.3 billion in 2023. As part of its strategy to revive interest in the PSVR2, Sony is exploring PC compatibility to expand the range of available VR games to its users. Despite these challenges, the potential for growth in VR remains, with analysts suggesting that upcoming entries by major tech companies could energize the sector.
