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But Merel points out that Sony is ignoring that wider potential to focus on its core consumer base of people who love Play Station. “This is helped enormously by Sony’s internal games development capabilities — leading lights like Magic Lab’s Richard Marks — and the strong community of existing PS4 game developers.” Super Data Research founder and analyst Joost van Dreunen agreed that this is a sign that the consumer market is primed to jump on VR, but he cautioned the medium still has a long way to go.“It’s important to remember that it is early adopters that are currently buying the device,” said van Dreunen.“The biggest threat to the PSVR is the lethal combination of a lack of consumer interest and the absence of third-party support,” he said.“PC and mobile-based VR also live in this universe — even if these three audiences don’t overlap all that much.” Finally, Sony could potentially trip itself up.“The worst thing that could happen is that VR will be like Kinect, interesting at the outset but never fully embraced by users.My view is that VR is pretty versatile for education, healthcare, and commerce in addition to gaming, so I expect it to succeed.” Van Dreunen echoed that sentiment.“What characterizes the introduction of any new platform is the initial zeal from a subsegment of the consumer market to try the new hardware, but the large majority are still in ‘wait-and-see’ mode.Sony has set itself up properly by providing a well-priced package, a demo that can easily be shared, and the scheduling of half a million in-store demos.

“With an install base of around 49 million PS4s worldwide, it will look to quickly establish that precarious balance between consumer demand and third-party support.

If the installed base grows quickly, developers will chase it.” Sony’s risks Sony seems like it could sweep in and take over the spotlight, but it will also have to avoid repeating some mistakes of similarly flashy technologies from the past, according to Pachter.

“The biggest risk I see is that VR in general may be perceived as a fad,” said Pachter.

PSVR is playing the same game, as it has the purest focus of any of the current consumer VR headsets.

It’s all about games and nothing else.” For months now, experts have claimed that the VR industry could generate as much as billion in revenue by 2020, but that’s if you include business applications, productivity tools, and everything else beyond gaming.

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To figure out exactly what Sony’s entrance into this next-gen battle means, Games Beat turned to a few market analysts to get some answers.

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