According to numerous reports, Meta are rethinking their strategy for VR content. This has forced some studios that are connected to the company to reconsider their approach in turn. Even though VR is known for being cutting-edge, it seems that the market today isn’t as viable as it once was, and there are several reasons for this.
Why Are VR Sales Declining?
One reason why VR isn’t doing as well as it once did is because of the extensive setup requirements. If you want to play VR games, you need to invest in a headset, and you also need a lot of other additional equipment, such as controllers, to navigate most titles. On top of this, you cannot play with anyone who doesn’t have a headset, which can limit the possibilities further for some players. In conjunction with this, people are generally gravitating towards faster playing experiences, both in terms of set-up and gameplay.
Short-Form MR Games are On the Rise
People want more fast and streamlined gaming experiences, with the ability to drop in and out of games without losing progress. Game genres like this are proving to be far more popular right now, and Meta is starting to realize that more than ever. In fact, not only are they scaling back on VR due to unprofitability, but they are investing more and more in MR and faster experiences.
A lot of popular MR titles, like A Fisherman’s Tale, allow you to solve puzzles in small environments, allowing for exploration while streamlining the experience. It’s fast to load, and compatible across numerous devices too, unlike a lot of VR games. Slot games online are also increasing in popularity, for the same reason. Cash Surge and Big Bass Splash for example, can be loaded in just a few seconds, and can be played on mobile, PC and in some instances, smartwatches.
As games like this are short-form, sites can offer thousands at once, but with VR games being so big and bulky, it’s hard to develop and offer enough of them to keep people interested.
As a result of VR’s decline, Dutch studio Monks, who develop virtual worlds, and Paris production studio Atlas V, who specialize in developing VR experiences, have witnessed a drop in partnerships too. With Meta’s own VR studio closing down as well, it seems that the company is now putting more focus on its mixed reality accelerators.
Developer Funding Isn’t Frozen
One thing to note is that developer funding is not frozen. Some deals have slowed down after the strategic review process, but the company is still willing to invest. Meta themselves have said that they intend to spend even more on developer funding this year when compared to last year, but it is not giving details as to how this funding is going to be allocated. We are also not sure how many studios have been affected by the cuts so far, as the change coincides with Meta’s Reality Labs as well. The VR and AR division has been ordered to cut its costs by 20% by 2026 so that more funds can be allocated to MR and more mainstream forms of entertainment.
The Shift in Playing Experiences
Meta’s strategy makes sense here, as although VR was once a huge market, that’s simply not the case anymore. The extensive technological setup required to play VR games, in combination with the long development times, simply makes it difficult to sustain. With people gravitating towards faster playing experiences as well, investing more in MR makes perfect sense. MR games can be developed faster as they involve merely adding virtual elements to the already existing real world, rather than creating full virtual environments from scratch. They also put less strain on developers and their resources, allowing more games to be created in a shorter space of time. With this comes the opportunity to make shorter games, rather than fully-fledged VR titles that have high expectations.
It’s not just gaming that we are seeing this shift in, either. In other verticals, like streaming, viewing experiences are getting shorter and shorter. TV shows once had 24 episodes per season, but now we are seeing shows released with eight, or even six episodes. This has led to much higher engagement rates, too, with people far more likely to finish a season if it’s shorter and requires less of a time commitment overall. In music, albums are also becoming shorter. The average Spotify charting song today is 3 minutes long, which is 15 seconds shorter than charting songs of 2023. It’s also 30 seconds shorter than in 2019.
When you look at the bigger picture, it is clear that the transition to faster and shorter games has been happening for years, and Meta’s strategy to embrace it is a smart business move. With MR set to dominate the gaming sector in the coming years, they are just preparing for a huge opportunity.
