Worldwide XR Revenue Update: Q2 2020

Worldwide XR Revenue Update: Q2 2020

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.

Worldwide XR Revenue Update- Q2 2020 - Game Podcast - Games Podcasts - Games Podcast -
Worldwide XR Revenue Update- Q2 2020 – Game Podcast – Games Podcasts – Games Podcast –

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.

About PodcastGameConsultant.com;

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.

Video Game Podcast Interviews hosted by Reinout te Brake - Game Podcast - Games Podcasts - Video Game Podcast -
Video Game Podcast Interviews hosted by Reinout te Brake – Game Podcast – Games Podcasts – Video Game Podcast –

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.

Host of the podcast show Game Consultant
About the Author
Reinout is a Game Dev Investor and Strategy Advisor. Host of the Video Games Podcast. If you want to know more about trends, analysis and insights in gaming, then you did find the right games podcast. Check out https://www.PodcastGameConsultant.com.

1 comment on “Worldwide XR Revenue Update: Q2 2020

Leave a Reply

Your email address will not be published. Required fields are marked *