Latest research from Telsyte has revealed sales of virtual reality (VR) headsets in Australia soared 40% in 2017, totalling 302,000 devices sold.

Sony PlayStation has snared market leadership, driven by the accompaniment of virtual reality components with the PlayStation 4.

PlayStation has also been commended for attracting leading game publishers, a move which further increased VR headset sales.

For 2018, PlayStation has already announced over 50 new VR game titles.

Annual revenue derived from VR headsets is forecast to notch over $200 million by 2020, up from $79 million in 2017.

Telsyte forecasts 2.2 million households will own a VR headset by 2021, primarily for entertainment.

Despite the sales growth, Telsyte believes VR headset adoption is “constrained”, citing high device costs, a fast pace of innovation, and the absence of “clear market winners”.

Telsyte MD, Foad Fadaghi, affirms local consumers and developers are adopting a “wait and see approach” to VR.

Following increased awareness, health concerns concerning VR have plummeted – now only 5% worried about VR’s potential health risks, versus 36% in 2016.

According to Telsyte, augmented reality (AR) is expected to gain broader adoption than VR. One in three Australians state they’ve tried AR apps e.g. Pokemon GO.

Telsyte forecasts consumer AR headsets and smart glasses to become commercial available by late 2020. Some models may support both AR and VR.