The metaverse – a digital world created by the combination of virtual reality (VR), augmented reality (AR) and the internet – is based on a transition to new “immersive hardware interface platforms,” Goldman Sachs (GS) wrote in a research report Tuesday.
Because of the existence of usable products, VR is more favorable than AR for the bank. The bank expects to develop more hardware in near future.
The “main race” for VR is between Apple (AAPL) and Meta (FB), the report said. Apple is likely striving for an extension to its ecosystem, and Meta is looking to build a base of users through “attractive hardware pricing and compelling experiences,” it said.
The VR platform market is expected to grow rapidly into 2023. Sales of these products will be influenced by the utility they provide, according to the note. It also stated that VR could become an integral part of remote work if certain issues like comfort are addressed.
The bank anticipates Meta Platforms’ Quest Pro product to be launched this fall and Apple will launch its own product early in 2023.
The report stated that AR use will likely remain restricted to expensive industrial applications in the near future.