VR is still a small market but it’s growing

An entertainment and media report found that while VR may not be a big seller like video games or cinema, it’s growing quickly.

July 16, 2021

It turns out being unable to escape our homes was good for escapism.

PwC’s annual Global Entertainment and Media (E&M) Outlook 2021-2025 report found that virtual reality was 2020’s fastest growing E&M segment.

To be sure: 2020 was a pretty weird year

With many sectors shut down for months, global E&M revenue dropped 3.8%, accounting for a loss of $81B. That’s the biggest drop since PwC started doing its report 22 years ago.

Segments impacted by the pandemic, like live music and cinema, took hits of 70%+, but at-home entertainment grew.

VR content revenue reached $1.8B, a 31.7% YoY increase, and got a big boost from 2 releases:

  • VR video game “Half-Life: Alyx,” which saw 1.9m sales in its 1st 6 months
  • The Oculus Quest 2 headset, which quickly outpaced previous Oculus sales

But will it last?

PwC predicts that VR revenue will continue to increase by 30% each year, hitting $6.9B by 2025 — way short of video games’ predicted $194B, but not bad.

Still, The Information predicts VR needs to diversify content beyond games — including fitness and live entertainment apps — to maintain steady growth.

BTW, we’re still over here meditating and “tripping” in VR.

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