Despite the launch of Sony’s hotly anticipated PSVR 2, the overall augmented and virtual reality headset market dropped by more than half during the first three months of the year.

According to new data from the International Data Corporation (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker, the overall AR/VR headset market declined 54.4 per cent year over year, as global economic conditions slide, and demand cools for tech products.

VR headsets represented 96.2 per cent of all headsets shipped during the quarter.

Meta retains a strong market share of 47.8 per cent, although the aforementioned Sony headset managed to take a 35.9 per cent bite of the overall market.

TikTok owner ByteDance grew from 4.4 per cent last year to 6.1 per cent through expansion into other markets, and the release of new products.

DPVR and HTC round out the top 5, with less than 2 per cent each.

“Despite the recent downturn, it’s an exciting time for the AR/VR market as new entrants and the next generation of headsets are expected to rollout in the coming weeks and months,” said Jitesh Ubrani, research manager, Mobility and Consumer Device Trackers at IDC.

“After Sony reemerging as a major competitor to Meta, all eyes are on Apple, which has yet to announce its headset. Apple’s sizeable installed base of existing products and services will certainly help set the company’s headset apart from other AR/VR vendors though Apple’s share gains will be limited in the near term given the rumored prosumer approach and hefty price tag associated with the headset.”