American Investment Banking firm, Goldman Sachs wrote in a new report that the metaverse is based on a transition to new “immersive hardware interface problems”.
Metaverse is a combination of augmented reality (AR), virtual reality (VR) and the internet. Goldman Sachs believes that VR will develop faster than AR since usable products already exist for VR. The bank also expects more hardware development in the near future for VR.
The report says that the two main competitors for VR hardware development are Meta and Apple. The bank believes that Apple will likely look for an extension for its thriving ecosystem, and Meta on the other hand is already looking to build a user base through “attractive hardware pricing and compelling experiences”.
The bank is more positive on VR than AR because usable products already exist and it expects development of more hardware in the near term. The “main race” for VR is between Apple (AAPL) and Meta (FB), the report said. Apple is likely striving for an extension to its ecosystem, and Meta is looking to build a base of users through “attractive hardware pricing and compelling experiences,” it said.
Still, while VR platform technology is getting better, the category has until now “failed to resonate with a broad base of users,” Goldman said. VR platforms are set to evolve quickly into 2023, and sales of these products will depend on the amount of utility that consumers derive from their use, the note said, adding that VR could become an integral part of remote working if some issues, such as comfort, are resolved.
The bank expects Meta Platforms to launch its Quest Pro product this fall, and Apple to launch its own product in early 2023. Although the VR technology is getting better it has failed to match the user expectations until now, says the report. The report states that the VR platforms will evolve in 2023 and the sale of these VR products will depend on their utility. The bank believes that VR could become an integral part of remote working if it resolves problems such as comfort.
The report says that the bank expects Apple products to be launched in 2023, and the Meta platform to launch its Quest Pro product in the fall of 2022. The report finally adds that the use of AR will probably stay limited to costly industrial focused applications.
