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It’s no secret that the concept of the metaverse has been gaining traction in recent years. The idea of a virtual shared space where users can interact with each other and digital objects in real-time has captivated the imaginations of many, and many companies and organizations have been investing heavily in the development of this technology.

  • Sales of virtual reality headsets in the U.S. declined 2% year over year to $1.1 billion as of early December, according to NPD Group.
  • Worldwide shipments of VR headsets as well as augmented reality devices dropped more than 12% to 9.6 million in 2022.
  • Appleā€™s potential entry into the VR market is one of the big developments to look for in 2023.

However, it seems that the metaverse may be off to an ominous start. According to a recent report from CNBC, sales of virtual reality (VR) headsets shrunk in 2022. This is a worrying sign for the development of the metaverse, as VR is one of the key technologies that is necessary for its creation.

So, what’s causing this decline in VR headset sales? One possible explanation is the lack of compelling content for these headsets. Without a wide variety of immersive and engaging experiences for users to enjoy, it’s unlikely that people will be inclined to invest in the technology. Additionally, the high cost of VR headsets may also be a barrier for many people looking to try out the technology.

It’s worth noting that this decline in VR headset sales is not necessarily a death knell for the metaverse. There is still a lot of potential for this technology, and it’s possible that we may see a resurgence in interest and sales in the future. However, the current state of affairs is certainly a cause for concern.

World events from 2020 to current are having an impact

Going into the third year of the Covid pandemic plus an escalating war in Ukraine that has been in conflict for almost a year now which as further caused issues in supply chains, logistical and transportation industries by the rising fuel prices. The recent layoffs from Google & Microsoft with the recent layoffs announcement spells bad news for metaverse lovers like myself.

With the world economy suspected to go into another recession in 2023 due to further conflict between the West and Russia, this may mean that world major economies are slowing down just incase a ‘wartime economy’ is needed to be put into place The USA’s tech industry would be the first to be overhauled so throttling back on new projects such as the metaverse which could be argued to be ‘spending money’ in terms of company’s priorities during a tough financial time. However, I still believe companies are investing in VR but are throttling back to focus on AI as recent announcements in the industry have created topics like ChatGPT a hot topic and is shaking up AI competitors to produce a product soon.

In conclusion, the metaverse is an exciting concept with a lot of potential, but the recent decline in VR headset sales is an ominous sign for its development. The lack of compelling content and high prices for the technology may be contributing factors to this decline. We will have to wait and see if this trend continues and what the future holds for the metaverse.