Game developers are losing faith in VR as a gaming market

According to one late 2024 survey conducted by the Game Developer Collective, over half of the game developers surveyed consider the VR market to be stagnant or in decline. Worse still, barely a quarter still believe the market is growing.

Among developers not currently working on VR projects, fewer than half see any possibility of their studio investing in VR in the future. Even Apple’s entry into the market doesn’t seem to have made much of an impression on those surveyed. Meanwhile, research firm Omdia reported that sales of VR headsets dropped by 10 percent in 2024, with further decline expected in 2025.

The big studios don’t seem to have an appetite for VR. Despite the success of Half-Life: Alyx, Valve has yet to release anything else, instead focusing on multiplayer ventures like Counter-Strike 2 and Deadlock as well as hardware like the Steam Deck. Alyx was in 2020 and was only available on PC VR devices. Even Apple has failed to drive much developer interest with its Vision Pro headset.

What’s the problem here? Well, while technological limitations tend to ease and shrink over time, that doesn’t seem to be the case with virtual reality. It’s hard enough to pack a ton of processing power into a portable device, but VR headsets need to be extra lightweight and comfortable. There’s also the optical technology, which still has a way to go before we reach ultra-realistic immersion. Battery life is a concern, as is the susceptibility of some to VR motion sickness.

There’s also the need for ample physical space, with high-end PC-based setups requiring enough room to deploy external sensors. But even simpler options—like the Meta Quest 3 or PSVR2—can still be impractical in a smaller apartment or living room. There simply isn’t always space to wield a lightsaber or move around freely.

Despite constant technological advances and the involvement of major players, virtual reality still seems to struggle with the same problems today as it did years ago. Developers are reluctant, sales are falling, and the lack of major game releases makes it difficult to attract a wider audience. Will VR ever be the revolution once promised? Or will it remain an expensive niche for enthusiasts only?