A new analytical report this morning states that global virtual reality (VR) headset shipments fell 4% YoY in Q2 2024. The decline was primarily driven by a sharp drop in Sony’s PlayStation VR2 (PSVR2) shipments, coupled with overall weakness in the consumer VR segment due to a lack of application innovations and a sluggish economy. In contrast, demand from the enterprise VR segment remained relatively stable in Q2.

 

In terms of brands, Meta was the undisputed market leader in Q2 2024 with a whopping 80% market share with a 37% YoY growth. Meta’s Quest 3 alone accounted for over 70% of the market.

Apple’s Vision Pro shipments saw a significant sequential decline in Q2, particularly after accounting for returned units from the US market. Following the initial market hype, consumers appear to be waiting for more content and application options to justify the high price of Apple’s MR headset. Apple is listed in the chart below as a distant fourth place player.

Senior Analyst Flora Tang: "Recent products, while offering upgrades in computing power, display and optical performance, and overall specifications, have resulted in higher prices without delivering compelling new applications for everyday use. As a result, consumer enthusiasm has waned. Many consumers are holding off on purchases, waiting for new content and applications that can justify the cost. Consequently, companies like Meta and Apple are now prioritizing the development of more affordable and lightweight products for future releases, rather than focusing on powerful but ultra-premium headsets." Counterpoint

Counterpoint's report is really a great marketing piece for Meta considering that the Quest 3 is a VR headset in deep contrast with Apple Vision Pro being  a Spatial Computer. It's a completely different beast that introduced a series of truly innovative new concepts to the headset market. It's a class with no equal at the moment. Yet Counterpoint still decided to lump Vision Pro into the VR gaming headset category which is misleading at minimum.