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October 21, 2020
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SuperData trims $1.4B off 2020 XR revenue projections as COVID-19 impacts supply

SuperData trims $1.4B off 2020 XR revenue projections as COVID-19 impacts supply

April 27, 2020 | By Alissa McAloon




Industry analyst SuperData has lightly adjusted its XR revenue projections for 2020, ultimately lowering this year’s expectations from $7.7 billion to $6.3 billion due in no small part to COVID-19.

In that recent update, SuperData notes that the first quarter of the year usually sees a post-holiday season decline, but that 2020’s Q1 was additionally impacted by slower production as COVID-19 precautions caused key factories to temporarily close.

SuperData uses the Valve Index as an example, pointing out that its data shows sales for the VR headset fell from 103,000 in Q4 to 33,000 in Q1, despite a rise in demand due to the launch of Half-Life: Alyx (which itself sold 860,000 copies in March according to SuperData data).

Location-based VR has also unsurprisingly suffered a hit due to COVID-19, and SuperData expects that segment to fall significantly to $141 million for 2020 as a whole. While VR headset revenue will bounce back once supply chains are back up and running, SuperData notes that location-based VR will take “some time” to return to the level it was at even just last year.



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