The news: Meta is getting some competition from Japan-based Sony and China-based ByteDance, each of which just announced next-gen VR headsets at the Tokyo Game Show, per Nikkei Asia.
Multiple metaverses: We’re starting to see the arrival of new VR headsets marking the first real challengers to Meta’s consumer metaverse. Competition will drum up general interest in VR but lead to fragmentation or segmentation of ecosystems.
More on this: As hardware is the key to VR adoption, it remains to be seen if supporting software ecosystems can help ByteDance and Sony gain traction. For Meta, this could be a good time to pivot toward VR collaboration and productivity.
What’s next? Meta needs to find ways to compete in terms of content and variety of VR experiences. While the battleground is currently in Japan, it could soon expand to the US and Canada, where Meta is currently the dominant player.
The key takeaway: Meta’s time as the dominant player in consumer VR is limited. Companies like ByteDance and Sony can compete in headset price as well as in vast content libraries in games and entertainment that would cost Meta billions of dollars to catch up with.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.