PlayStation CEO Jim Ryan recently observed that we are “more than a few minutes from the future of VR”. He emphasised that Sony believes in the technology, but that it will not represent a meaningful part of interactive entertainment in the near future. Many have interpreted this as a sign that the next generation PSVR headset is not on the roadmap for the remainder of 2020, or 2021, and it could in fact be years away. We believe that the earliest a next-gen PSVR will launch is in Q4 2022.

As we move into the launch period for the PS5 and Xbox Series X/S, marketing efforts are understandably focused on more broadly applicable elements of console gaming. At the end of 2019, PSVR had sold-through more than five million units, but this pales in comparison to the size of the active PS4 userbase. With less than 5% of PlayStation users engaging with VR, Sony is instead focused on maximising console sales and retaining users within the PlayStation ecosystem, through showcasing exclusive content and upgraded hardware.

The PS5 VR experience will only be realised with a new headset

It was confirmed that PSVR on the PS5 will only be delivered through backwards compatibility, meaning VR releases of upcoming games such as Hitman 3 and No Man’s Sky will only be accessible via the PS4 versions of the games. The PS Camera, which serves as the VR tracking device, and the DualShock 4 controllers will also not be supported on PS5 – although a free camera adapter is being offered to those who wish to use their PSVR with the new console.

This is frustrating for some players, but underlines Sony’s established strategy of defining a clear generational leap. Leaving current technology behind allows the new generation of hardware and content to be wholly exploited: to take advantage of its advanced capabilities without being tethered by the limitations of the prior generation. An upgraded VR experience is due with the PS5, but one that can only be fully realised with a new headset.

Where does PSVR sit in the VR headset landscape?

PSVR’s accessibility and ease of use are core to its success: it has the highest adoption of all high-end VR headsets. Compared with many tethered PC offerings, the PSVR setup is simple and straight-forward. The content library is small, but contains notable exclusives via the PlayStation Store, such as Wipeout, Farpoint, Resident Evil and Dreams VR. It is also inexpensive at $299, matched only by the recently launched Oculus Quest 2.

Its high penetration is partially due to its age: it launched in 2016, with few competitors. In comparison, we have seen at least 10 new headsets enter the market in the last 18 months. The PSVR’s ease of use and age contribute to its limited specs. It has a minimal 100-degree field of view (FoV), and the lowest resolution per eye of all the high-end headsets on the market at 960 x 1080.

These features are expected to be upgraded for a next-gen PSVR powered by the PS5 – an increase in console power and investment will enable larger, higher resolution screens with an expanded FoV. We also believe the PSVR2 is likely to be wireless – though not standalone – and to incorporate inside-out tracking, as seen with the line of Oculus Quest devices. Thus far, however, the PSVR’s content and accessibility for existing console users have offset its ageing tech.