When Google rolled out its Cardboard VR viewer in 2014, many observers thought the paper product was largely designed to poke fun at companies like Oculus and HTC, which were developing multi-hundred dollar headsets. Flash forward a few years, and the Cardboard is no joke. According to a new report from the research firm Strategy Analytics, the Google Cardboard held a dominant market share by the end of 2016, claiming 69% of the global VR headset market (as measured by number of shipments). Of course, given the Cardboard’s inexpensiveness, that only accounts for 12% of revenue share. Nonetheless, the report illustrates that higher-end headsets are struggling to gain traction in the market. Samsung’s Gear VR, a mobile phone-based headset that sells for under $100, comes in second in terms of market share (17%) and first in terms of revenue (35%). But some of the most expensive headsets are hovering near the basement floor. Neither the HTC Vive nor the Oculus Rift command so much as 1% of the market. The Sony PlayStation VR, despite launching later than the Vive and Rift, appears to be performing better: It holds about a 3% market share, and comes in second to the Gear VR in terms of revenue. Taken together, the Gear VR and Rift account for over 50% of 2016 revenue share.
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