TOKYO Since its launch in October 2016, Sony PlayStationVirtual Reality (VR) goggles have sold less than 6 million units. The company said the results were in line with its goal. The head of Sony's PlayStation business said the headset "continues to be well-received by people worldwide thanks to the high-quality revolutionary VR experience it offers." "We have been cautious in producing the PlayStation VR to avoid stacking up inventory, but our factories are ready to increase production."

While Sony seems happy with its sales figures, analysis are disappointed. VR is not selling fast enough. Virtual reality has significant potential because it can be used for simulations, immersive social interaction, training, education, and gaming. Gamers tend to be the most willing to spend on new consumer technology, meaning they are likely to play an essential role in determining whether virtual reality ultimately enters other segments and becomes a mass-market product.

The CEO of Capcom, a game publisher known for blockbuster titles such as "Resident Evil," told investors after the PlayStation VR release that he is cautious about spending big to create virtual-reality games because they might not bring in enough revenue. A survey done by the Reddit PS VR group found that 70% of the enthusiastic gamers who purchased the PlayStation VR when it came to the market have stopped using it recently. Most say that while they are excited about virtual reality technology, they could not find enough software titles to keep them interested.

Sony announced that blockbuster titles such as "Final Fantasy XV" from Square Enix Holdings Co. and "Tekken 7" from Bandai Namco Entertainment Inc. are coming for PlayStation VR. Gamers in the Reddit group suggest that those are mainly adaptations of PlayStation 4that have limited VR "modes" exclusively developed for the virtual-reality goggles.

1. Which one of Porter 6 forces is the most relevant in assessing the issues facing PlayStation VR? Explain.

2. What would you advise Sony to do to make VR headsets become a mass-market item?

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