The recent $200 price cut on the PlayStation VR2 headset proved to be very effective in boosting its sales according to retailer data. For a limited period, the headset was available for $350 instead of the regular retail price of $550.
This 33% discount is reported to have increased sales by over 2300% on the first day of the sale compared to the previous day. The data highlighted the importance of price for virtual reality adoption.
In this blog, we explore the impact of this sale in more detail along with Sony’s plans for their VR platform going forward. Several sub-headings below discuss the reported sales surge, PlayStation VR2’s lack of new games, and opinions on maintaining the discounted price.
The information provided aims to offer a clear overview of the effects of the price cut and what it could mean for Sony and VR gaming. Be sure to read the entire post to gain full insights from the analyzed data and its implications.
Understanding the Consumer Surge During the PlayStation VR2 Sale
The data provided around the PlayStation VR2 sale underscores the sensitivity of pricing for virtual reality adoption. According to reports, a retailer shared that PSVR 2 headset sales increased by 2300% on the first day of the $200 discount from the day prior.
In concrete numbers, the retailer sold more units of these some of the best VR headsets in a single day for $350 than in the entire period since launch at the $550 price point. This exponential increase in daily sales highlights how the $200 price drop unlocked demand that was held back at the launch MSRP.
Nearly a quarter of all PSVR2 units sold this year were purchased on day one of the sale alone. With summer vacations also in effect, the sale perfectly timed increased consumer interest with time available for gaming.
The data demonstrated that many PlayStation5 owners were ready to consider virtual reality for the system once the cost of entry lowered. Industry insiders began urging Sony to not return PSVR2 back to the original higher price and instead make $350 the regular cost going forward or further reduce it.
However, Sony did not heed these recommendations as discussed in the next subheading. Clearly more consumers found the $350 value to be appealing for their first VR system compared to $550 for an accessory at launch.
Why PlayStation VR2 is Returning to Its Original $550 Price
Despite the dramatic sales boost from slashing PlayStation VR2’s price by 33%, Sony has decided not to make $350 the regular cost or further reduce the MSRP. Instead, on August 9th (exactly 9 days after kicking off), the temporary discount ended and prices returned to the original $550.
Sony may believe PSVR2 is worth a premium as a cutting-edge virtual reality system unmatched by competition when it comes to features like resolution, field of view and tracking technology. There is also the speculation that volumes sold at $350 affected the company’s margins negatively.
With limited supply chain visibility, Sony may have concerns about committing financially to an unforeseen higher sales baseline. In addition, competitors like Meta adjust pricing gradually over time rather than keeping holiday discounts as standard rates immediately.
So the move doesn’t totally go against industry norms even if enthusiasts had hoped to see the momentum sustained with an informal adoption of the “sale” price. Only the coming quarters will show if sticking to $550 again hinders PlayStation VR2 uptake long-term.
PlayStation VR2 Faces Stiff Competition in the Evolving VR Market
While PlayStation VR2 remains the premium virtual reality option for PlayStation5 users, competition in the VR market has intensified over the past year. Meta continues to dominate worldwide VR usage with its affordable all-in-one Quest 3 headset priced very low at $300.
Over Q2 2023, around 75% of virtual reality head mounted displays sold were Quest models according to Steam figures, showing its extremely strong consumer mindshare. Also, newly launched headsets like Pico 4 provide competitive mid-range options for $450 that do not require a powerful external PC or console.
With no major new VR games released since launch, Sony now risks PSVR2 becoming an afterthought potentially as customers move towards lower priced multi-purpose alternatives regardless of console ownership. Moving forward, PlayStation will need to aggressively market software unveils to help justify its higher asking price against advanced cross-platform competition.
What Lies Ahead for PlayStation VR2 After the Price Adjustment
Now that the temporary $350 sale price has come to an end, all eyes will be on PlayStation VR2 sales trends over the coming months to see how returning to $550 impacts adoption. While flagship VR games to play with friends like Horizon: Call of the Mountain helped drive initial interest, the lack of major first-party releases since launch could start affecting the platform’s momentum.
However, confirmed games like Cities VR and Blade & Sorcery Nomad coming later this year may attract more users if advertised extensively. Additionally, PSVR2’s PC compatibility through a separate adapter launching in 2023 should open the door to a whole new potential audience.
But the next few Quarterly Financial Results from Sony will be watched closely to determined if $550 remains too high when compared to enhanced multi-device competitors around the $300-400 range. Another future price adjustment may be needed if attach rates stagnate without sufficient software highlights and broad availability.
