Annual revenues for VR gaming are set to hit $1.8 billion by the end of the year, according to data from Newzoo’s VR Games Market Report 2022.
The market is predicted to more than double to $3.2 billion by 2024, hitting $2.5 billion in 2023. For comparison, revenues in 2021 reached $1.4 billion.
Newzoo also said that the VR install base is growing faster than ever; it’ll hit 27.7 million users by the end of 2022, and is forecast to reach 46 million by the end of 2024.
The firm cites the increase in standalone VR headsets as one of the main reasons for growth, as devices such as the Meta Quest can be set up and used without the need for additional hardware.
The Meta Quest 2 launch price of $299 also lowered barriers to entry, although Meta increased the price of the headset to $399 back in August.
Recent and upcoming launches of new products may also have an impact on earnings in the next year, Meta released the Meta Quest Pro last month, and competitor Pico launched the Pico 4 headset in Western Europe, which is priced at €429 ($440), $20 less than the Quest.
Sony is due to launch its PlayStation VR2 headset in February 2023. Newzoo notes that the latter’s performance is tied to the install base of the PS5, which is still in short supply.
Meta also acquired three new VR-focused studios last month – Camoflaj, Armature Studio and Twisted Pixel.
But the firm has a significant decline to flip around; back in February, we reported that Meta’s AR/VR segment saw a $10.2 billion operating loss in 2021, alongside its $2.2 billion in revenue.
