Sony Temporarily Halts PS VR2 Production Amidst Growing Inventory Backlog
Sony’s PS VR2 Production Pause Amidst Reported 2 Million Unit Inventory
Sony Group has decided to halt the production of its PS VR2 headset temporarily, as it grapples with a surplus of unsold inventory, sources familiar with the matter revealed. This move casts some uncertainty on the demand for virtual reality devices in the consumer market.
Since its launch alongside the PlayStation 5, sales of the $550 PS VR2 headset have gradually slowed down, leading to a buildup of stocks, according to the insiders, who preferred to remain anonymous. Reportedly, Sony has manufactured over 2 million units of the PS VR2 since its release in February of the previous year.
IDC, a market research firm, notes a consistent decline in PS VR2 shipments each quarter since its introduction. The excess inventory is spread across Sony’s supply chain, indicating a notable challenge in maintaining demand for the product.
Despite the current setbacks, IDC’s Francisco Jeronimo remains optimistic about the future of the VR market. He anticipates a resurgence in the sector in the coming years, buoyed in part by Apple’s anticipated entry into the market. Jeronimo forecasts an average annual growth rate of 31.5 percent for the VR market between 2023 and 2028.
Sony Group has paused production of its PS VR2 headset until it clears a backlog of unsold units, according to people familiar with its plans, adding to doubts about the appeal of virtual reality gadgets.
Sales of the $550 wearable accessory to the PlayStation 5 have slowed progressively since its launch and stocks of the device are building up, according to the people, who asked not to be named as the information is not public. Sony has produced well over 2 million units of the product launched in February of last year, the people said.
PS VR2 shipments have declined every quarter since its debut, according to IDC, which tracks deliveries to retailers rather than consumers. The surplus of assembled devices is throughout Sony’s supply chain, the people said. Still, IDC’s Francisco Jeronimo sees a recovery for the product category in coming years with the help of Apple’s entry. “We forecast the VR market to grow on average 31.5 percent per year between 2023 and 2028,” he said.
