Tech hype vs. reality: There’s no need to rush Meta’s Quest Pro or 8K TV into people’s hands, says analyst - MarketWatch

Meta Platforms Inc.’s META, +0.43% much-hyped metaverse is astatine the bosom of the company’s virtual-reality push. Last year, when Facebook morphed into Meta, the exertion elephantine described the metaverse arsenic a “hybrid of today’s online societal experiences” that tin beryllium expanded into 3 dimensions oregon projected into the carnal world.

For Meta Chief Executive Mark Zuckerberg, the metaverse is the adjacent epoch of societal exertion — but the web of virtual world worlds has near galore radical scratching their heads.

Now read: Meta’s caller VR headset volition outgo $1,500 arsenic Zuckerberg sets up conflict with Apple

“There are galore challenges and adjacent the sanction (Metaverse) is confusing to the mean idiosyncratic connected the precocious street,” Pescatore told MarketWatch. While terms volition ever beryllium a factor, creating request is acold much analyzable than lowering prices, helium said, noting that the $1,500 Quest Pro feels similar an “expensive toy.”

“That’s my interest for a batch of these technologies that are fast-tracked into people’s hands; 8K is different example,” the expert added. “There’s nary demand, truthful wherefore unreserved it?”

8K TV — which has 4 times the solution of ultra-HD 4K TVs but requires 8K contented to get that higher solution — is being championed by tech heavyweights specified arsenic Sony Group Corp. SONY, -1.67%, LG Electronics Inc. 066570, +1.35% and Samsung Electronics Co. 005930, -0.18%. Consumer demand, however, has not matched the hype, with shipments of 8K TVs accounting for a specified 0.15% of each TV shipments successful 2021, according to probe released earlier this twelvemonth by Omdia. The probe steadfast estimates that globally, conscionable 2.7 cardinal households volition person an 8K TV by the extremity of 2026.

8K TVs person mislaid user momentum, according to Omdia, which noted that precise small 8K autochthonal contented is available. Price unit is besides excessively precocious for China to thrust request compared with North America oregon Western Europe, the steadfast added.

Also read: Meta busts retired large VR move, but volition Quest Pro headset determination the metaverse needle?

With respect to Meta and its bold caller satellite of virtual and augmented reality, Pescatore says that next-generation networks connection endless possibilities acknowledgment to gigabit connectivity. But there’s lone truthful overmuch wealth the likes of Meta tin propulsion into forcing request and making this a reality, helium warns. “Even then, the concern models are unclear,” Pescatore added. “Seems that advertizing volition beryllium a cardinal root of revenue.”

Speaking Oct. 11 astatine Meta Connect, the company’s yearly conference, Zuckerberg acknowledged that it’s inactive aboriginal successful the displacement to moving successful the metaverse. But by launching a high-end carnal device, helium said, the institution is trying to crook the committedness of the virtual satellite into tangible reality.

Other companies are besides ramping up their efforts successful this space. Apple Inc. is targeting VR and is expected to denote its ain headset in the coming months, with the instrumentality apt disposable adjacent year. 

Improvements successful signifier origin could velocity maturation arsenic existent VR headsets germinate into astute glasses and adjacent virtual screens that could look connected immoderate aboveground oregon wall, according to Pescatore. “This is wherever it could go much breathtaking and engaging for users,” helium said. “There could beryllium immoderate far-fetched usage cases look similar watching a unrecorded shot lucifer connected the transportation successful existent clip oregon moving astir a movie to get a antithetic angle.”

Also read: Meta again ordered to merchantability Giphy by U.K. regulator

But people’s behaviour needs to alteration earlier this each becomes a reality. “Maybe it’s 1 for the existent Gen Z or, much likely, aboriginal generations,” Pescatore told MarketWatch. 

Meta shares person fallen 59.7% this year, outpacing the S&P 500 Index’s diminution of 21.3%. Of 54 analysts surveyed by FactSet, 37 person an underweight oregon bargain rating, 16 person a clasp rating, and 1 has an underweight rating.