Supply Shortages Are Holding Back Virtual Reality

Supply shortages at virtual reality headset makers are keeping the industry from growing as fast as it could, according to SuperData, a research company focused on the video game industry. On Wednesday the firm lowered its forecast for combined sales of virtual reality hardware and software to $2.9 billion in 2016, down 22 percent from a forecast it made last month before the Oculus Rift and HTC Vive headsets went on sale. It’s the second time this year that SuperData has lowered its expectations for virtual reality; in January it predicted that the VR industry would bring in $5.1 billion in revenue.

Oculus Rift customers who order a headset today through its website shouldn’t expect to receive it until August, according to the company, and they’re limited to one per person. Pre-orders of the HTC Vive are now planned to ship “around June.” There are also still only a limited numbers of PCs with graphics cards powerful enough to display virtual reality. SuperData says Samsung is also having trouble keeping up with demand for its Gear VR, a cheaper headset that works with the company’s smartphones.