VR Gaming Revenue Expected to Reach $1.8 Billion by 2022

According to Newzoo's 2022 VR Games Market Report, the virtual reality gaming industry is poised to generate $1.8 billion in revenue by the end of the year. This figure is anticipated to more than double to $3.2 billion by 2024, with $2.5 billion projected for 2023, marking a significant increase from the $1.4 billion earned in 2021. The growth of the VR install base is accelerating, with an expected 27.7 million users by the end of 2022 and a forecast of 46 million by 2024. A key driver of this growth is the rise of standalone VR headsets, such as the Meta Quest, which eliminates the need for additional hardware. The launch of affordable devices like the Meta Quest 2, initially priced at $299, has also lowered the barrier to entry for consumers. Although Meta later increased the price to $399, the impact of recent and upcoming product launches, including the Meta Quest Pro and Pico 4 headset, may influence future earnings. Sony's PlayStation VR2 headset, set to launch in February 2023, will likely be affected by the availability of the PS5 console. Furthermore, Meta's acquisition of three VR-focused studios - Camoflaj, Armature Studio, and Twisted Pixel - demonstrates the company's commitment to the sector. However, the firm still needs to address the significant decline in its AR/VR segment, which reported a $10.2 billion operating loss in 2021, alongside $2.2 billion in revenue.