According to recent reports from Nikkei Asian Review, Facebook and Sony are gearing up to increase the production of gaming devices by as much as 50%.
The source behind this report is referred to as someone with direct knowledge on the matter who is quoted saying: “The new Facebook Oculus VR headset will enter mass production around the end of July.”
During the global pandemic, sales of gaming devices have skyrocketed as people have been stuck at home with little to do. As a result, things like VR headsets have been consistently out of stock as people search for new ways to entertain themselves.
This surge in market demand has led tech giants Sony and Facebook to turn their attention to their gaming devices.
Oculus Pushing Production to 2 Million Units
Facebook’s Oculus, a leading provider of VR headsets has seen at least 50% growth compared to this time last year. In response to this, production of its latest version of VR headsets has now been pushed to 2 million units.
Facebook originally purchased Oculus, the VR startup, for $2 billion in 2014 and scored a hit with the Oculus Quest, priced at $399. This was the company’s first all-in-one, cordless VR headset. This move seems to be in line with Facebook’s ambition to claw more of the emerging VR market. Facebook’s Oculus is currently a market share leader, with a market share of 35%.
An unknown source, reportedly with direct knowledge of Facebook’s plans said:
“Compared with the declining smartphone market, VR is still a nascent market but we see strong growth for this year and more and more companies are coming into the arena. The production forecast for the second half of this year could reach at least two million units, which is already around 1.5 times more than its total production output last year.”
It’s no secret or surprise that the sales of Oculus headsets have had a growing demand due to the coronavirus pandemic. However, it’s not clear whether this growth is likely to remain consistent or sustainable. However, Jason Tsai, an analyst from TrendForce said:
“Overall, the VR market will continue to grow. Facebook’s growing momentum this year will be more robust than Sony’s VR lineup as Facebook’s strategy is to sell its VR devices at a relatively affordable price since last year to grow the ecosystem base, and it not only targeted gamers but also has a bigger hope to explore other business opportunities and applications.”
Sony Pushes PlayStation 5 Production to 9 Million Units
While Facebook focuses on Oculus headsets, Sony has primarily set its focus on the upcoming PlayStation 5 console.
It looks like production for the PS5 has already increased as Sony anticipates the same high demand. Originally, Sony planned for 6 million units to ship out. But this has increased to around 9 million units ready for the launch.
Of course, production orders could change while we wait for the PS5 release. This will all depend on the market demand of gaming devices which could very well change later on this year.
In the meantime, we’ll be keeping an eye out to see if there are any updates. Did you pick up a new gaming device this spring/summer? Or are you waiting to invest in the new PS5? Let us know your thoughts below.