4 Key Areas of Growth for XR in 2023 (So far…)

2023 will go down as a key year in XR history. Despite stalling sales of the lead device – Meta Quest 2 – and mixed reports of Sony’s huge success/woeful failure in selling PlayStation VR 2, the industry has hit numerous milestones that have spurred on renewed interest and growth.

The time that #XR has taken (or rather, is taking) to reach mass market appeal is often cited as a reason why it never will. However, suggesting as such is ignoring many of the real-world factors that have been born of modern technology. If we were to look back at the birth of modern PCs and gaming consoles – and even smartphones – never would we have seen a product announcement before the device was ready for mass market launch.

The Apple Newton, Nintendo Entertainment System (NES), PlayStation, and even the iPhone – none of these were ever purchasable by the general public as ‘beta’ versions. The Oculus Kickstarter changed the way we perceive technology launches. It would be easy to discount everything right up to the launch of the original Oculus Quest as an era we would never have previously seen. Thus, the strive for mass market adoption is realistically only four years in.

And with that, we can look at 2023 as a turning point. The new technologies that are on the way are bringing years of expertise, R&D and – perhaps just as importantly – branding to the plate.

So, with all this in mind, here’s my picks for the key areas of growth 2023 has already brought us.

1.??????Investment: Despite headlines suggesting otherwise, Meta continues to invest billions of dollars into the ecosystem. This covers everything from hardware to apps, games, digital distribution, and much more besides. The term ‘metaverse’ may have been sullied somewhat this year, but Meta’s continued drive to realise it cannot be underestimated.

2.??????Increased Use of IPs: The launch of Roblox in VR on Meta Quest 2 is a huge deal. One of the biggest IPs in gaming globally launching on the platform will undoubtedly bring more attention, and the upcoming launch of the Meta Quest 3 could inspire some holiday present wish lists. It would of course be smart for Meta to do some kind of pack-in deal with bonus content, similar to how consoles regularly do so with free-to-play games. And for the more discerning gamer, Assassin’s Creed Nexus is bringing yet another big franchise to VR (though, not for the first time).

3.??????AR Growth: I’ve commented on this before, but AR has seen some astonishing growth this year. Not just in users, but in functionality. In use cases. AR is no longer just a digital view overlay. It’s now an interactive experience (and not just Pokémon Go). What’s more, it’s ubiquitous. AR is slowly seeping into more people’s lives almost silently, as it begins to become a part of everyday life.

4.??????Apple: You all knew it was coming! The Apple Vision Pro isn’t going to take over the market. It’s not going to become the industry leader and it’s not going to change the business model for smaller software studios. It is, however, going to pave the way for the future of XR’s public perception. Soon, XR will be seen as a cool new innovative technology. It will be treated as a useful accessory in the same way as AirPods or an Apple Watch. It won’t be adopted by millions, but it will make those same millions reconsider what XR actually is.

Those are my takeaways from 2023 thus far. Do you agree? Do you think we’ll see any more landmark moments this year (Connect is just around the corner!).