A handful of developers have already come out in support of the Sony virtual reality initiative Project Morpheus, at least comparing its specs with the first generation VR hardware Oculus Rift, but one analyst believes it could be a mistake for the company to get into that specific market, according to a report today from VG 24/7.
In an interview with DualShockers, Wedbush Morgan analyst Michael Pachter called Sony entering the virtual reality arena a “really bad idea” because the market is already crowded with “multiple participants” chasing VR.
“I have no problem with the Oculus Rift, that they’re trying it, because they’re a startup, and that’s a very small market, and if they dominate it that’s great,” Pachter said. “But if it’s a small market and there are multiple players, it’s going to be hard for anybody to make money.”
And Pachter anticipates the market staying small, comparing developing virtual reality games and hardware to the age-old adage the chicken and the egg.
“If there’s no content you’re not going to buy a virtual reality headset,” Pachter said. “And if you don’t buy a virtual reality headset, there won’t be any content, because no one will make a dedicated game for a very small audience.”
Pachter said that Sony could follow Oculus’s lead and create its own games for virtual reality, but the analyst believes the smaller startup would be happy just reaching a million sales and large-scale platform holder wouldn’t
“I think the Oculus guys are going to be very happy with a million sales. If they get a million sales, they’re going to get a ton of money,” Pachter said. “A million sales is a huge success for Oculus Rift. It’s just a hiccup for Sony.”
A million sales, incidentally, is the starting point for the publisher Ubisoft to become interested in developing games for virtual reality hardware.