Sony Forges Its Own Path with PSVR2

The consumer VR market has fragmented into three distinct categories over the past few years. There are PC-based headsets that continue the legacy of the earliest VR devices, standalone headsets like Meta's Quest that prioritize wireless simplicity over graphical performance, and then there's PlayStation VR. Sony's VR headset occupies a unique position in the market, making it an intriguing player in the VR space. The recent hands-on experience with PSVR 2 has generated immense interest, with the media and consumers eagerly awaiting the device's launch in the first half of 2023. Although pricing details are still unknown, the hardware itself is reportedly fantastic, which is no surprise given Sony's decades-long experience in creating exceptional consumer hardware. The unique market position of PSVR is also a significant factor in generating interest. As an outsider in the VR market, Sony follows a different path than its competitors, with a distinct software library and a closed platform that sets it apart. The pace of updates is also slower than the rapid innovation seen in other parts of the VR industry. However, this approach may ultimately help Sony become the first company to launch a VR product that appeals to a mainstream audience. One key difference between Sony and its competitors is the launch cycle of new headsets. While other companies release new headsets every few years, Sony takes a more measured approach, with PSVR 2 being only its second VR hardware launch since 2016. This means that the original PSVR had a relatively long lifespan of six years, comparable to the normal lifespan of a consumer device like a console. The rapid pace of innovation in the VR industry is a double-edged sword. On the one hand, it drives progress and improves the quality and functionality of headsets. On the other hand, it can be overwhelming for consumers, who may be hesitant to buy a device that may become obsolete soon. Enthusiasts may bemoan the slow pace of innovation, but for mass market consumers, stability and predictability are essential. The VR industry can learn from the smartphone market, where the slowing pace of innovation led to a surge in global sales as consumers became more confident in their purchasing decisions. Sony's position in the VR market is unique, as it can leverage the best of both worlds. The company can gather the latest technological advances and launch a new cutting-edge headset every five or six years, with the promise of long-term support and stability. This approach makes consumers more relaxed about buying into the ecosystem, and the comparisons between the old and new devices are more flattering than those between incremental upgrades to other headsets. However, there are caveats, such as the potential issue of backwards compatibility for PSVR 1 games and the need for developer intervention due to changes in motion tracking. These concerns may weigh on consumer thinking and raise questions about the stability of the VR platform. Despite these challenges, Sony's offering remains more appealing to general consumers than most other VR devices. The platform is stable, well-supported, and backed by a trusted brand in gaming. The ability to bring major game franchises to the platform is a significant selling point, especially for mainstream consumers who may not be familiar with other VR software franchises. The initial PSVR was a moderate success by console standards, and Sony has the opportunity to build on that success and leverage it into something bigger with PSVR 2. With its impressive hardware and growing library of VR games, the potential for PSVR 2 to crack into the mainstream market is closer than ever.