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VR traction over the past several years has been slower than many had anticipated. And the sector has experienced some declines over the past few years, which can be seen in Meta’s earnings. Fortunately for Meta, those declines are offset by smart glasses (another topic).
But questions remain around how well VR is landing with consumers today, and if those sentiments are trending in the right direction. So we set out for answers. Working closely with Thrive Analytics, ARtillery Intelligence helped field a consumer survey and report on the results.
Known as VR Usage & Consumer Attitudes, Wave 10, the report follows similar research over the last decade. Ten waves of research bring new insights and trend data to light. And all ten waves represent a collective six-digit sum of U.S. adults for robust longitudinal analysis.
Among the topics tackled: How is VR resonating with everyday consumers? How often are they using it? How satisfied are they? What types of experiences do they like most? How much are they willing to pay for it? And for those who aren’t interested in VR… why not?
Hanging On
After the last installment of this series examined VR’s overall penetration and usage frequency, we drill down to look at the most popular devices. Meta Quest (all variants) unsurprisingly scored highest with usage among 66 percent of respondents, up from 62 percent in Wave 9.
Following Meta, Sony (all PSVR variants) received a respectable 41 percent of respondents. We say “respectable” because Sony was, for a short time, the consumer VR market share leader. Though Meta has risen to dominance, Sony is still hanging on with a decent user base.
Beyond headsets, a use case that continues to grow in this survey is cinematic entertainment. This involves a simple and widely-relatable value proposition: virtual large-screen entertainment. It usually takes shape in virtual 2D displays, viewed in private immersive spaces.
In fact, elsewhere in this survey, that very use case is shown to be the most popular thing to do in VR. Though it doesn’t tap into VR’s full capacity for immersion and 6 DoF positional tracking, it’s what consumers want. This is a lesson in the baby steps needed for behavioral change.
But it’s also worth noting that this 3DoF entertainment use case is being undercut from below, given the emergence of video display glasses from the likes of VITURE and Xreal. They offer a similar UX but in a lighter package, which makes a big difference for mainstream users.
Shelter from the Storm
But the biggest mover in headset usage share involves a category that isn’t tied to any specific VR brand or model. “Device provided at a VR facility” grew from 4 percent to 14 percent in this survey wave. This is not only telling, but it aligns with a theme that’s prevalent in this year’s study.
Specifically, as we examined in the last edition of this report excerpt series, VR is seeing widescale declines in usage, as seen in evidence such as Meta’s quarterly earnings. But despite that, adoption grew in this report by 5 percentage points. LBVR is the reason for that discrepancy.
Consumer sales of VR devices are indeed declining… while LBVR facilities are inflecting. This occurs partly as a result of affordability challenges (rent time versus own), Covid-era rebounds in out-of-home social activities, and younger generations’ propensity for experiences over ownership.
Beyond this survey, LBVR’s growth is validated in our separate XR market sizing, as well as the live market activity we’re tracking. This represents a notable turnaround for the category, after it had a near-death experience in the Covid era. It could now represent shelter during a VR winter.
Read the full report here.