Worldwide XR Revenue Update: Q2 2020; A while ago, an estimate of $6.3B was put forward by the data scientists regarding XR hardware and consumer software but 2020 is showing a lot more promising figures now.
It is projected that the revenue will reach $6.9B, quashing the previously estimated figure.
While you are here, reading this blogpost, why dont you check out some of our games podcast epsiodes here!
Now let’s talk about VR headsets. COVID-19 resulted in worldwide lockdown, consequently increased the demand for home entertainment.
The most in-demand hardware was the VR headsets despite their disrupted supply chain due to the lockdown. This continued high demand combined with a new launch like HP Reverb G2, VR headsets are expected to generate $2.5B with a gradual every year.
The best selling VR was the Oculus Quest that outsold the PlayStation VR in Q2 amidst a restricted supply chain. During the last quarter of 2017 till Q3 2019, PSVR dominated but after Q4 2019, Oculus Quest reigned.
The numbers tell us that Oculus Quest will remain the best selling VR at least till the end of 2021.
When we talk about location-based entertainment, it is projected to continue on the downward trend due to the pandemic. When compared to 2019, the spending this year will be roughly one quarter but the long-term impact is worrisome.
It is estimated that spending in 2023 will still be 29% lower when compared to total spending in 2019.
When taken into account the growth outlook for AR/MR headsets, it too shows a downward trend. The AR/MR headsets will only account for 23% of all the revenue of XR by 2023 proving wrong the previously predicted projection of 36%.
Companies like Magic Leap and North struggled hard in this period, North got acquired by Google and Magic Leap had to do mass layoffs.
Furthermore, it is estimated that the Apple AR headset will give a much-needed boost to the AR market but it won’t happen anytime sooner.
And lastly, Pokemon GO turned out to be a bright spot for mobile AR with a 12% rise in earnings in Q2 2020.
These were some of the business insights and geeky stuff in the gaming industry. For some, this pandemic is turning out to be a blessing and for some a bane.
Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry.
With over 20+ years of experience, well known publishers, AAA+ game developers, serial gaming entrepreneurs and management teams of gaming corporations consult him on matters that behold financial, technical, operational, strategic and commercial.
I am observing and overseeing several boards of gaming companies. My trademark is to listen, strategize and give feedback to the stakeholders involved. I also represent management/founders towards shareholders and vice versa.