A new study shows that the younger generation is not embracing virtual-reality (VR) technology in the way that big-tech firms are serving it up.
Key Details
- The 45th Semi-Annual Generation Z Survey from investment bank Piper Sandler samples 5,600 U.S. teens on subjects including spending habits, political opinions, and social media usage.
- One of the findings was that adolescent adoption rates for VR are low, with nearly one-third of respondents owning VR devices but only 4% using them daily.
- The usage of these devices has declined, with weekly users dropping from 17% to 14%.
- These numbers are notable compared to the high usage of smartphones (95%) and gaming consoles (80%), Fortune reports.
Why It’s Important
The slow adoption rate of VR has been broadly reflected in the market. As we previously reported, Meta Platforms has slowly begun to shift its company focus away from its namesake metaverse and VR projects as sales have declined and usage rates remain low. CEO Mark Zuckerberg’s delve into VR now appears to be a secondary consideration.
The move is a setback for the entire VR market. Apple is rumored to have scheduled to reveal its own VR headset later this year and could debut its new device onto a dwindling market unless continued investment and growth can improve sales in the longterm.
Backing Up A Bit
Zuckerberg previously shifted the direction of his umbrella company in October 2021 by changing the name of the company from Facebook to Meta Platforms—reflecting both the relative decline of the world’s largest social network and his hopes of transforming the company into the face of VR technology.
With his company’s propriety research company Reality Labs having lost nearly $14 billion last year and the $36 billion investment into VR proving underwhelming, the VR market may soon lose its leading voice.
Notable Quote
“The AR/VR market has been taking slow but sure steps in recent years and is poised to take longer strides in the years to come. Recently announced and upcoming hardware from major brands showcase clear improvement from first-generation devices. The result: a maturing market ready to thrive for consumers and commercial users alike,” IDC research director Ramon T. Llamas tells Fortune.
