All the while, consumer interest never matched the industry’s passion for the technology. The pandemic might have seemed like a prime opportunity to plug in and disconnect, since actual reality didn’t have a lot going for it. But after a jump in 2021, VR headset sales fell 2% last year to $1.1 billion, according to the NPD Group — a far cry from the near-$100 billion market once forecast. Only one in seven households even had a VR headset in 2022, according to Parks Associates. That limited reach means limited appeal for mass-market entertainment distributors.

 

Sheer lack of interest may be the biggest factor holding VR back. A Parks Associates survey found that among consumers who hadn’t tried VR, 47% said the reason they hadn’t bought VR equipment is that they saw no use for it. Among those who had tried it, 37% cited the same reason. Far fewer people cited cost, discomfort or a lack of content as a barrier, suggesting that the problem with virtual reality can’t be solved merely by improving the technology or throwing money at creatives to build more VR experiences.

 

From the article, "Hollywood Turns the Page on the Metaverse – and Disney Just Got the Memo," by Owen Thomas.