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More than one million VR headsets sold last quarter

PlayStation VR accounts 80% of Japanese market

For the first time since launching onto the market, over one million VR headsets were sold in a single quarter.

Sony accounted for nearly half of sales, shifting 490,000 units. Oculus lagged behind at 210,000 units, while HTC sold 160,000. Collectively the big three made up for 86% of the total Q3 2017.

According to a report from Canalys, Oculus' decision to temporarily cut the price of the Rift to $399 was an important factor in driving up sales.

"VR adoption in the consumer segment is highly dependent on price, and Oculus' strategy of lowering prices has definitely helped drive adoption," said Canalys research analyst Vincent Thielke.

Oculus has now set this reduction as the new standard price, and new headsets entering the market are having to consider price more carefully.

"Hugo Barra is betting on his next product, the $199 Oculus Go standalone headset, to reach more users next year," added Thielke. "The Go will excite first-time users, but driving adoption beyond social media will be a challenge."

Meanwhile in Japan, the booming interest in VR arcades has seen a noticeable uptick of growth in the sector.

"Sony is well placed to take advantage of this increasing interest in VR," said Canalys analyst Jason Low. "Sony has dominated the Japanese VR headset market since the release of the PSVR, taking more than an 80% share, and will continue to lead as it increases supply of the PSVR headset with bundles featuring new titles from popular franchises, including Doom, Skyrim and Gran Turismo."

Looking at the picture for 2018, the market is expected to enjoy a boost from Microsoft's looming Mixed Reality offering and the inevitable slew of competing VR headsets.

"VR in business can be applied to many industries, such as manufacturing, healthcare and education," said Low. "As top-tier PC vendors, including HP, Lenovo, Acer, Asus and Dell, launch their own VR headsets, using their distribution channel efficiencies, one can expect a strong VR uptake in business."

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