Sony PSVR2 headset production halted due to decline in its demand

According to sources, Sony has ceased manufacturing new Play Station VR2 headset units in an effort to reduce an increasing amount of unsold inventory. Sales of the Play Station VR2 headset have "slowed progressively" since its release in February 2023. Compared to what tracking company IDC estimates as just 1.69 million unit shipments to retailers until the end of last year, Sony has produced "well over 2 million" units of the headset. There is a "surplus of assembled devices throughout Sony's supply chain" as a result of the disparity.

PSVR2 launched last year on Feb. 22, and Sony has so far produced over 2 million units with sales decreasing every quarter since its launch, according to Bloomberg. The report also reveals that during the fourth quarter of 2023, the company reportedly sold around 325,000 units of PSVR2 which is a stark decrease from the 595,000 units it sold during the first quarter that same year.

So far, consumers can play major titles such as “Resident Evil 4,” “Five Nights at Freddy's Help Wanted 2,” and “Hello Neighbor: Search and Rescue” on Sony’s PSVR2. But the limited catalog of games is suggested to be a major factor in sales, and the cost to produce virtual reality games “is substantially higher than normal titles,” said Macquarie analyst Yijia Zhai.

The report comes after Sony revealed in its latest earnings report on Feb. 14 that it was facing challenges selling its PlayStation 5 console, which was once in high demand a few years ago and retails for around $499.