Brief - The Hustle

VR is still a small market but it’s growing

Written by Juliet Bennett Rylah | Jul 16, 2021 7:15:39 AM

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.