Market research firm IDC reports a slow start for the PlayStation VR 2 (PSVR 2), with Bloomberg revealing that Sony is likely to sell about 270,000 units between its February 22 release and the end of March. Given these slow sales, the question arises whether a price cut could be the key to boosting demand for the VR headset.
Production Numbers and Pre-orders
Bloomberg reported last year that Sony aimed to produce two million units by March 2023 in anticipation of strong demand. However, before the launch, the outlet claimed that Sony had lowered its first-quarter sales forecast to one million units due to weak pre-order numbers. Sony later stated that production numbers would not be cut without directly contradicting Bloomberg’s report.
Current Economic Climate and Affordability
IDC’s Francisco Jeronimo, vice president of data and analytics, attributed the challenges of selling VR headsets to the current economic climate, with rising costs of living, interest rates, and layoffs. Priced at $550, the PSVR 2 is the most expensive first-party console accessory in history, which could deter potential buyers.
Potential for a Price Cut
A price cut could be a strategic move for Sony to boost demand for the PSVR 2. Other VR devices have seen price reductions in response to weak sales, such as the original Oculus Rift with Touch, which dropped from $800 to as low as $350 over its lifetime. Additionally, Meta recently cut the price of the Quest Pro from $1500 to $1000 just four months after launch.
It’s unlikely that the PSVR 2 costs anywhere near $550 to produce, considering the absence of a full-fledged high-end mobile chipset with battery, storage, and RAM, as well as the use of fresnel lenses. This suggests that Sony may be making a decent profit on the hardware and could have room for a price cut.
Upcoming Holiday Season and Future Releases
The upcoming holiday season may be crucial for Sony to boost sales, as the company still has time to improve its game offerings. More than 100 VR titles are currently in development, and these games are essential in convincing consumers to purchase the device.
As the PlayStation VR 2 has not yet been sold by major retailers like Amazon or Best Buy, the timing of its release might suggest that Sony is treating the PSVR 2 as a soft launch. A potential price cut combined with the release of more and better games over the next few years could significantly improve the PSVR 2’s sales performance.
