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2022 Was a Plateau Year for VR, Here’s What to Expect in 2023

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The end of 2022 marks more than a decade since the Oculus Kickstarter sparked the modern era of VR. While the space has undoubtedly grown tremendously since then, 2022 felt largely like a plateau year, with Meta standing unchallenged as the dominant player in the space—while progressing disjointedly in too many directions at once. But with new headsets, promising new content, and a looming heavyweight positioned to challenge Meta all on the horizon, 2023 could big a much bigger year for the VR space.

The 2022 Plateau

2022 wasn’t a bad year for VR by any means, but for the most part the status quo remained unchanged.

There’s no doubt that Meta has been the central pillar of the VR space in 2022, having pivoted its attention in a very public way by renaming the entire company to Meta just before the year began. The company’s Quest 2 headset has retained its position as the most popular headset on the market, even becoming the most-used headset among PC VR players, despite Meta having all but abandoned PC VR as a platform.

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Despite its dominance (or perhaps because of it), Meta has continued to make very good hardware while struggling deeply with its software. Though Quest 2 is certainly more capable than similar products, the user experience is disjointed and unrefined. The Quest Pro only continued this trend; the high-end headset brings a range of impressive improvements to the hardware along with new sensing capabilities, but its new features are significantly hampered by an undercooked software offering.

Regardless of various missteps, Meta is undoubtedly doing the most to keep VR afloat right now. Quest 2 is an affordable headset that’s created a large enough market of users that developers are finding growing success on the platform. In 2022 that’s meant that many developers have begun or continued to treat Quest 2 as their highest priority platform. To that end, we saw many ports of existing VR games coming to Quest 2, and most new releases being either Quest 2 exclusive, or on Quest 2 and some other platforms.

Unfortunately Meta’s dominance has meant that much of the air in the room as been sucked away from other parts of the VR space that were once key pillars.

Despite the release of new and updated enthusiast PC VR headsets, the platform has stagnated due to the content focus shifting away from PC VR. Many of the games released this year on PC VR were designed first and foremost for Quest 2, which means many lacked the scale and polish that resonates with enthusiast PC VR users.

Valve’s seeming disinterest in VR ever since the release of Half-Life: Alyx back in 2020 hasn’t helped either. The company continues to sell its 2019 headset for the same price that it was charging on day one, with no official confirmation that it has plans to do anything major in the VR space (hardware or software) in the near future. Sony’s PSVR1, meanwhile, has largely lost any remaining relevance since the announcement of the upcoming PSVR 2.

On the Horizon for 2023

But there’s lots of interesting things on the horizon for VR in 2023. Crucially we may see some real competition for Meta from several different angles, which is sorely needed to keep the company (and the industry at large) on a steady course toward making VR a more valuable platform in order to increase mainstream viability.

First Up

The biggest near-term event for the VR industry in 2023 will be the launch of PSVR 2 in February. Although Sony has technically continued selling its original PSVR headset over the years, it’s been on the market for more than six years now—and gained ‘last-gen’ status well before that.

Given all that time between—and that the company isn’t bringing its exclusive VR content forward to the new headset—the upcoming launch of PSVR 2 feels like a re-entrance into the VR market for Sony rather than a continuation. But now that the company has made the commitment, they’ll likely put strong support behind the headset for at least a few years.

Importantly, as a console maker, Sony knows well that ‘content is king’, and we can expect to see a new slate of quality VR content funded by the company, some of which could make it onto other headsets. Sony’s original PSVR is still home to some of the best exclusive VR games in the industry, made by its own first-party studios; at a minimum it would be nice to see those top titles updated and improved for PSVR 2, and better yet it would be great to see Sony setting its first-party studios to the task of creating high quality VR content once again.

But PSVR 2 only represents pseudo-competition for Meta, since the headset only appeals to those that already own a PS5 (or who are willing to buy a PS5 just to get the headset).

Real Competition for Meta?

On the other hand, some real competition from the likes of Pico and HTC may be on the way.

On the high-end, HTC’s newly announced Vive XR Elite is clearly positioned to compete with Meta’s Quest Pro. With most of the same essential features, but a lower price point ($1,100 vs. $1,500), the Vive XR Elite at least looks at face value like an alternative choice for those looking for a more compact VR headset with improved passthrough AR capabilities.

And on the low-end, Pico’s recently launched Neo 4 is the first such headset that is truly competing on price with Quest 2. Priced at €20 or €50 less than Quest 2 (depending upon storage capacity), looks like a real alternative. Granted, the company has yet to formally bring its headset to the United States—Meta’s home turf.

But… both Vive XR Elite and Pico Neo 4 share a common problem, and that’s content.

A Big Moment for Content Momentum

Regardless of specs and price, unless the content that users want is available on these headsets, they are difficult to consider real options (and thus real competition). As of now, both headsets lack many of the best-selling and most-played killer apps that are available on Meta’s Quest headsets.

But that could finally be changing. Compared to prior alternative standalone headsets, XR Elite and Neo 4 have a much more significant and recognizable body of content than we’ve seen in the past. If more developers recognize the benefit that both they and consumers alike would see from having a more competitive standalone market… perhaps this could be the start of an important sea change in the industry.

The Elephant in the Room

Of course the single biggest elephant in the room has been and will continue to be Apple. It seems that every month we get a new rumor about when the company will enter the market, with the only certainty being that the company is definitely hard at work on something—though no one knows precisely when they will announced it, let alone launch it.

Apple, more than any other company in the world, has the potential to disrupt Meta at its own game by releasing an XR headset with a highly polished user experience… something the social-media-turned-metaverse company (and frankly the VR industry at large) has struggled with.

Make no mistake, Apple’s entrance into the XR space will have wide reaching implications practically overnight—both within the XR space and outside of it.

Look for UX Innovation, Not a Hardware Breakthrough

But nobody should be expecting hardware breakthroughs from Apple. The company is stuck with the same (largely physical) constraints as the rest of the major players in the industry. Whatever device they launch is likely to have similar specs and form-factor to what the latest headsets we see on the market today. More importantly however, Apple is likely to contribute key software design, device interoperability, and overall UX learnings that other companies in XR have consistently struggled with.

While Apple is certainly a threat to the likes of Meta, the company’s entrance into the market is also likely to be a boon for Meta overall; not only will it be a validation of Meta’s early and ambitious bet on the space, but the best XR design concepts revealed from within Apple will be adopted for the betterment of the industry at large. For Meta, Apple’s entrance into the space can’t come soon enough.

Meta Faces the Same Old Struggles

While Quest 2 has been more widely adopted than any other standalone headset, user retention continues to be an issue. Not only due to substandard UX, but also the headset being stuck in an arcade phase where years-old games like Beat Saber, Superhot VR, and Job Simulator continue to be among the most popular games on the platform—seemingly signaling that only a small amount of compelling new content has reached the headset in the years since Quest 2 has launched. Meanwhile, the headset most enthusiastic userbase—core gamers—is underserved, waiting for the sort of large-scale and highly polished content that they expect from the traditional gaming space.

As for Meta’s 2023… outside of the Apple wildcard, the company has confirmed that it’s working on a next-gen consumer headset due out this year, which is very likely to be Quest 3. And while the company has some pretty wild R&D projects in the oven, more likely than not, Quest 3 will adopt core parts of the Quest Pro headset rather than offering some kind of major leap in features or form-factor.

Last But Not Least

As for PC VR, the only thing keeping the platform alive is an enthusiast player base that’s hungry for greater immersion and starved for next-gen VR content. Unfortunately with so much attention focused on standalone VR by platform holders and developers, PC VR in 2023 will be largely stuck with content built for other platforms that happens to spill over.

Between that content, the VR modding scene, smaller-scope projects from enthusiast indie developers, and the occasional release of VR-optional flight or racing sims—PC VR will feel like it’s on life support through 2023.

PC VR is and continues to be the place where users can push immersion to the next level with niche accessories like full-body trackers, racing & cockpit peripherals, haptic vests, and gun stocks. And while some unannounced PC VR headsets may make an appearance in 2023, the drought of next-gen PC VR content means dwindling reasons to upgrade.

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Ask Andy: How can you tell whether a startup is a good place to work? When is it safe to disclose a mental-health challenge to coworkers?

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As a software developer who would like to work for a startup, what should I look for in a company so that I know it’s legit? If I am putting a lot of work into a product, I want to know that at minimum it’s for a legitimate company and founder—not just another person with an overdone app idea that knows nothing about the tech world. Sarah C.

If you’re learning the startup game, the best bet here is to go later-stage. Focus on a pre-IPO company that is growing quickly, has raised money from blue-chip investors, and is getting positive buzz in the market that it will go public within the next two years.

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Then, don’t believe any of it.

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Network your way into three of the company’s team members on LinkedIn or through your network. Have three virtual or IRL coffees. Have them tell you about the culture: If they’re learning; if the company’s really growing; and most importantly, whether or not they respect and, ideally, admire the leadership.

Keep looking until you find this vetted opportunity.

That’s a systematic, rational approach. But that’s not the only way to go. You could throw it all out the window.

Find a company where you believe in the mission. One where you fall in love with the product or service. You might already be a high LTV customer or a power user. Check your credit card statement and your app home screen to source ideas. Your passion for the mission will make it work for you for some time, even if the company doesn’t work in the long run.

However you get there, once you’re inside for a year or two, you’ll be learning.

You may have to switch horses. That’s okay.

When you do, you’ll know more people, you’ll have more insight, and the path on what to pick next will be clearer. Heck, you might even notice an inflection point and meet a cofounder that leads to you starting a company yourself.

It’s like dating.

You probably won’t marry your first love—but you might. If you don’t, your judgment will iteratively improve. And the good news is unlike a marriage, you can change out your partner every few years. (What I’ve found, though, is that the most successful people professionally, and those who generate the most wealth, have more like 5- to 10-year runs.)

Trust your intuition. Follow your heart on the mission or product. Then, don’t trust yourself.  Study the market. Use the product.  And do at least three off-list references outside of who you interview with. Read every single Glassdoor entry.

And then jump!

You’ll be fine.

Do you think you could have shared your mental health conditions publicly BEFORE you were professionally successful, and still have been successful? Or was the fact that you had already achieved professional success what allowed you to be open? Zack

No, I don’t think I could have shared before we succeeded. I wouldn’t have had the courage to, and I feared it might be career-limiting.

Then again, it was almost seven years ago that I had my I-can’t-deny-this-any-longer moment with my Bonobos colleagues and investors. As of today, I think it’s becoming more possible to be candid about mental health. I hope we can move to a world where I could have been more open, sooner, at least selectively with my leadership team and board.

Some entrepreneurs ask me when to tell their VCs about the mental-health challenge or mental-health diagnosis they wrestle with. I always say the same thing: at a breakfast meeting, four months after you’ve closed the round and hit your numbers. Nobody cares about your neurodivergence if you’re performing—and most VCs actually know enough to know that most founders have more going on than meets the eye.

With your team, I think it’s doable, even now. Perhaps especially now. The truth is, they know. They know you deal with stuff because they’re around you. And the vulnerability you share in disclosing will multiply their respect for you. More importantly, it’ll give those team members the space to reciprocally share their stuff with their colleagues, and potentially you as well, and bring their full selves to work.

Wouldn’t that be cool?

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Take-Two Buys Gearbox And Its New ‘Borderlands’ Game From Embracer

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If you’re a game developer owned by Embracer Group at this point, you are nervous about layoffs, shutdowns or game cancellations after the last few years. But now, there is a somewhat happy ending for one of them, Gearbox.

It’s just been announced that Take-Two, which owns GTA developer Rockstar, will purchase Gearbox for $460 million. This also includes the properties Gearbox owns, the Borderlands and Tiny Tina’s Wonderlands franchises, Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem. The report says Gearbox has six games in development, five sequels, including a new Borderlands game, the not-announced-but-definitely-happening Borderlands 4. Here’s Strauss Zelnick:

“Our acquisition of Gearbox is an exciting moment for Take-Two and will strengthen our industry-leading creative talent and portfolio of owned intellectual property, including the iconic Borderlands franchise,” said Zelnick, Chairman and CEO of Take-Two. “This combination enhances the financial profile of our existing projects with Gearbox and unlocks the opportunity for us to drive increased long-term growth by leveraging the full resources of Take-Two across all of Gearbox’s exciting initiatives.”

Gearbox has been working with 2K and Take-Two for decades, so it was a logical place for them to land. This is, of course, not a great look for Embracer, who only purchased Gearbox three years ago. The price tag back then was “worth up to $1.3 billion” but there were a lot of strings attached to that where it’s not necessarily the case that selling for $$460 million netted them a ~$900 million loss.

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As for what this means for gamers, it would seem something like the Borderlands franchise is now on more stable ground, as it was hard to believe any project at Embracer is fully safe these days. Last year, Embracer quietly cancelled 29 different unannounced games and shut down seven studios in a six month period including Volition and Free Radical Design. That came with around 1,400 layoffs. More recently, Embracer laid off 97 people at Eidos in Janaury and cancelled a Deus Ex game.

Sufficed to say, those at Gearbox probably feel pretty good about this. And as for Take-Two, Borderlands is still a valuable IP, and Tiny Tina’s Wonderland was a surprise hit. There’s a new Homeworld game coming as well. In an era for multi-billion dollar acquisition, Gearbox for $460 million doesn’t seem that bad. That’s probably a third of what GTA 6 will sell on day one next year.

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What's Brewing in the iPhone 16 Rumor Mill? AI, Action Buttons and More – CNET

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As the iPhone 15 settles into the market, the tech community is buzzing with anticipation for Apple’s next-generation handset, which is expected to be named “iPhone 16.” 

We’ve heard whispers about the iPhone 16’s features, which are said to span from a new power-efficient display to larger screens, better zoom lenses, an action button and, perhaps not surprisingly, a suite of new gen-AI powered features.

Read more: Best iPhone of 2024

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However, the iPhone 16 is still presumably six months away and nothing will be confirmed until Apple’s iPhone event in the fall. Still, these rumors could give us an idea of what to expect from the next iPhone.

Here are the most credible rumors for the iPhone 16.

Will the iPhone 16 fold?

Probably not. The newest rumors suggest Apple has been working on iPhone Flip models in two different sizes, though there have been difficulties in making the devices to Apple’s standards. The company may also be working on a folding tablet with a screen around the size of an iPad Mini. Even though virtually every major phone-maker — from Google to Oppo to OnePlus and Samsung — have launched their own bendable handsets, Apple has been characteristically quiet about whether there will ever be an iPhone Flip or an iPhone Fold.

Prior rumors said Apple may not launch its own flexible screen device until 2025. Samsung hasn’t let phone fans forget it — by releasing an app that will let Apple phone owners experience a Z Fold-esque experience by placing two iPhones side-by-side.

iPhone 16 Pro models to get bigger screens?

Apple has maintained the two screen sizes for iPhone Pro models since 2020 when it launched the 6.1-inch iPhone 12 Pro and the 6.7-inch iPhone 12 Pro Max. However, that’s rumored to change with the iPhone 16 Pro models, which might get bigger screens.

Display analyst Ross Young suggested earlier this year that the iPhone 16 Pro models will have larger screens, putting the sizes at 6.3 inches for the iPhone 16 Pro and 6.9 inches for the iPhone 16 Pro Max. That rumor was later corroborated by Bloomberg’s Mark Gurman, who said the iPhone 16 Pro models could grow by “a couple tenths of an inch diagonally.”

The iPhone 16 and iPhone 16 Plus models are believed to be sticking with the current 6.1-inch and 6.7-inch sizes. If the size increase is accurate, it would be yet another move from Apple to distinguish its Pro iPhone models from its regular ones.

iPhone 15 screen sizes

  • iPhone 15: 6.1 inches.
  • iPhone 15 Plus: 6.7 inches.
  • iPhone 15 Pro: 6.1 inches.
  • iPhone 15 Pro Max: 6.7 inches.

Rumored iPhone 16 screen sizes

  • iPhone 16: 6.1 inches.
  • iPhone 16 Plus: 6.7 inches.
  • iPhone 16 Pro: 6.3 inches.
  • iPhone 16 Pro Max: 6.9 inches.

iPhone 16 gets more AI tricks

One of the most salient selling points of Samsung’s Galaxy S24 series and Google’s Pixel 8 lineup were each of their souped-up AI tips and tricks, and it wouldn’t be a major shock if Apple went in the same direction. Apple CEO Tim Cook has gone on the record this year confirming Apple sees “a huge opportunity for Apple with gen AI and AI.”

According to Gurman’s Power On newsletter, iOS 18 will feature generative AI technology that “should improve how both Siri and the Messages app can field questions and auto-complete sentences.”

A September report from the Information says Apple plans to use large language models, a crucial part of generative AI, to make Siri smarter. The report said this feature is expected to be released with an iPhone software update next year. 

Read More: iPhone iOS 18: A Possible Big Leap In AI

iPhone 16 design: New action button?

In March, AppleInsider published a collection of photographs purportedly displaying 3D-printed dummy models of the rumored iPhone 16 and iPhone 16 Pro. The images revealed that the iPhone 16 may have a vertical camera stack as opposed to a diagonal one and an action button, similar the one on last year’s iPhone 15 Pro.

iPhone 16 gets more power-efficient display?

Another change that could make its way to iPhone 16 displays is greater power efficiency. Samsung Display is apparently developing a new material set, dubbed M14, specifically for Apple, according to a TheElec report, which says the new technology should arrive on iPhones launching next year. M14 will replace the blue fluorescent technology that’s used now with blue phosphorescence technology, creating an even more power-efficient screen than the current LTPO ones used on Pro models, the report says.

Andrew Lanxon/CNET

iPhone 16 gets better zoom?

Both the iPhone 16 Pro and the iPhone 16 Pro Max could both have 5x telephoto lenses next year. According to Apple analyst Ming Chi Kuo, a tetraprism lens will make its way to both Pro models next year, as opposed to just the Pro Max model. Apple equipped the iPhone 15 Pro with a 12-megapixel 3x optical zoom, while the iPhone 15 Pro Max has a 12-megapixel 5x optical zoom camera, which is the equivalent of 120mm lens on a full-frame camera.

If this rumor is true, it could mark a breakthrough in design. When Apple launched the 15 Pro Max with its 5x telephoto lens, it cited the phone’s bigger body as to why the Pro Max had it, but the Pro didn’t.

iPhone 16 processors: A18 chip for all models?

In a break with the past two years, all four iPhone 16 models will apparently get a next-generation Apple chipset, which will all receive A18 branding. According to a MacRumors report citing Jeff Pu, an executive analyst for Haitong International Securities, all four models will have an A18 series chip with Pro iPhone models getting an A18 Bionic Pro and base models getting a regular A18.

The iPhone 15 and 15 Plus currently have an A16 Bionic, which debuted on the 2022 iPhone 14 Pro and 14 Pro Max, while the 15 Pro and 15 Pro Max run on the A17 Pro processor. Pu says the A18 chip will be manufactured with TSMC’s cutting-edge 3 nanometer process.

Read more: Apple iPhone SE 4 Rumors: iPhone 14 Design, Face ID and More



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