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Dec 19, 2023

VR market keeps shrinking even as Meta pours billions of dollars a quarter into metaverse

Posted by in categories: augmented reality, virtual reality

Despite the company’s commitment to making its founder’s dream come true, the virtual reality market is contracting.

Sales of VR headsets and augmented reality glasses in the U.S. plummeted nearly 40% to $664 million in 2023, as of Nov. 25, according to data shared with CNBC by research firm Circana. That’s a much steeper drop than last year, when sales of AR and VR devices slid 2% to $1.1 billion.

The two-year decline underscores Meta’s continuing challenge in bringing the immersive technology out of a niche gaming corner and into the mainstream. While Zuckerberg said, in announcing Facebook’s pivot to Meta in late 2021, that it would likely take a decade to reach a billion users, he may need to start showing more optimistic data to appease a shareholder base that’s been critical of the company’s hefty and risky investments.

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