Key Points:
- World addressable PS4 market expected to reach 53m consoles by the end of 2016.
- IHS forecasts that Sony will sell 1.6m PlayStation VRs by the end of the year; headset expected to be supply constrained at launch
- Across the integrated display, high-end VR headsets (Oculus Rift, HTC Vive and PlayStation VR) IHS expects Sony to capture 64% of the installed base market share in 2016.
- Content remains pivotal to longer term success of VR platforms; Sony well positioned to drive content portfolio with over 230 developers working on the platform.
- Low pricing means that total cost of ownership of PS4 and PlayStation VR headset will be half the price of Oculus Rift.
Sony's addressable market is far larger than for PC-based headsets
With a forecast installed base of 53m PS4s by the end of 2016, Sony has a much bigger addressable market of 'ready-to-go' consumers to address than PC-based solutions. In contrast, IHS forecasts that 17m consumers will addressable by Oculus Rift and HTC Vive by the end of 2016.
Lower pricing and total cost of ownership of PlayStation VR gives Sony a strong edge
At $399/€399/£349 PlayStation VR beats its closest competitors, Oculus Rift and HTC Vive on pricing and when you take into account the total cost of ownership of using a PS4 as a source device, Sony's experience is around half the price of its PC-based competition. When Oculus and HTC announced their relative headset pricing, Sony was offered an open goal opportunity to take an early lead in the consumer VR market, which they have taken with aplomb.
PlayStation VR likely to be supply constrained at launch
Even with a later launch date of October 2016, IHS expects Sony to sell-through 1.6m PlayStation VR headsets in 2016 and for the hardware to be supply constrained into 2017.
Sony's ability to control the entire VR experience across device, content and headset hardware is a key advantage
Sony has confirmed that over 230 developers are working on the PlayStation VR platform. Sony's existing in-house expertise and third-party relationships means it is well positioned to build a strong body of content for launch of the platform.
Sony's walled garden approach to the PS4 platform means it is well placed to provide a better controlled and consistent VR experience to consumers. This will be important in driving adoption and positive word of mouth for PlayStation VR.
