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Tech hype vs. reality: No rush to get Meta's Quest Pro and 8K TVs into people's hands, analysts say

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Facebook parent company Meta made big strides in virtual reality last week with the launch of its new high-end Quest Pro headset.

But Paolo Pescatore, a technology analyst at PP Foresight, told MarketWatch that technologies like virtual reality and augmented reality have been around for a while, but are far from being widely adopted. “Ultimately, this is still in its early stages and has a long way to go before it hits the mass market and gains widespread acceptance,” he said in an email. People aren’t in a hurry to leave their seats to watch a video.”

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The much-hyped Metaverse is at the heart of the company’s virtual reality push. When Facebook morphed into the meta last year, the tech giant described the metaverse as “a hybrid of today’s online he social experiences” that could be extended into three dimensions or projected onto the physical world. explained.

For Meta CEO Mark Zuckerberg, the Metaverse is the next era of social technology.

read now: Meta’s New VR Headset Priced at $1,500

“There are a lot of challenges and even the name (the Metaverse) is confusing to the average person on the main street,” Pescatore told MarketWatch. Price is always a factor, but creating demand is much more complicated than lowering the price, he said, noting that his $1,500 Quest Pro feels like an “expensive toy.” .

“That’s my concern with a lot of these technologies that are rapidly getting into people’s hands. 8K is another example,” the analyst added. “If there is no demand, why are you in a hurry?”

With four times the resolution of Ultra HD 4K TVs, 8K TVs need 8K content to get the higher resolution.
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However, consumer demand has not lived up to the hype, with 8K TV shipments accounting for just 0.15% of all TV shipments in 2021, according to a study released earlier this year by Omdia. Research firms estimate that by the end of 2026, 2.7 million households worldwide will own his 8K TVs.

Omdia notes that 8K TVs are losing consumer momentum and there is very little 8K native content available. Price pressure is also too high for China to drive demand compared to North America and Western Europe, the company added.

read also: Meta beats big VR moves, but will Quest Pro headsets move the needle in the metaverse?

Regarding Meta and its bold new world of virtual and augmented reality, Pescatore says next-generation networks offer limitless possibilities thanks to gigabit connectivity. But he warns that companies like Meta have limited funds to push their demands and make this happen. “Still, the business model is unclear,” added Pescatore. “Advertising is likely to become an important source of income.”

Speaking at the company’s annual conference, Meta Connect, on October 11, Zuckerberg acknowledged that the transition to working in the metaverse is still in its early stages. But by launching a high-end physical device, the company is looking to turn the promise of the virtual world into a tangible reality.

Other companies are also stepping up their efforts in this area. Apple Inc. is targeting his VR, with plans to unveil its own headset in the coming months, and the device could launch next year.

As current VR headsets evolve into smart glasses and virtual screens that can display on any surface or wall, improved form factors could fuel growth, Pescatore said. “This is where it can become more exciting and engaging for users,” he said. “There could be tremendous use cases like watching a football match in real time on the pitch or watching a movie from another angle.”

read alsoMeta is again mandated to sell Giphy by UK regulators

But before all this becomes a reality, people’s behavior needs to change. “It could be for Gen Z now, or maybe for future generations,” Pescatore told MarketWatch.

Meta stocks are down 59.7% this year, beating the S&P 500 Index’s 21.3% decline. Of his 54 analysts surveyed by FactSet, 37 have Underweight or Buy ratings, 16 Hold ratings, and 1 Underweight rating.