Meta’s XR Dominance Wanes as Market Declines: 2023 Shipment Analysis

Extended reality technology is gaining popularity day by day, or so we thought. After Apple introduced the Vision Pro, this technology, which we hear about almost every day, is one of the most popular topics of tech word along with artificial intelligence. However, it seems that this popularity has not been reflected in sales. Because the global XR headset market saw a substantial drop in 2023.

While Counterpoint’s research doesn’t specify the decline’s root cause, there are two plausible explanations. First, the announcement of Apple’s Vision Pro headset, though released in February, may have dampened demand in 2023. Leaks about the product circulated long before its announcement, potentially leading those considering an XR investment to hold out for what they might deem a superior option.

Another, perhaps more likely, reason lies in the state of the technology itself. VR and AR have undoubtedly advanced, but they remain niche and expensive for widespread, everyday use beyond a few standout games and applications. Many headset owners may find their devices collecting dust shortly after the initial novelty wears off. Potential buyers might then hesitate at the prospect of these sizable price tags.

Of course, we’ll need to wait for 2024’s results to draw definitive conclusions, and considering the first quarter is nearly over, this insight may arrive sooner than later. Counterpoint’s report also illustrates a challenge for Meta, the current industry leader. In 2023, the company captured 59% of total global XR headset shipments, a decrease from the 77% share in 2022. While PS VR2 certainly contributes to this, such a significant drop could hint at potential struggles for the company.

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