Pico's Internal Turmoil: The VR Industry Faces a Crucial Crossroad

Previously regarded as the “hope of China’s VR industry,” PICO has encountered an internal and external predicament of late. The first was the announcement that ByteDance would be phasing out its PICO business. The company refuted the rumor, but the resignation and subsequent transfer of numerous key business leaders gave the rumor some credence. This internal turmoil at PICO tore off the fig leaf of the VR business as well as exposing its own situation.

PICO, the top VR brand in China, previously depended on ByteDance’s unwavering backing to try and swiftly acquire users by lowering prices in an effort to reach the “singularity” of VR hardware. However, evidence has shown that the anticipated exponential expansion cannot be achieved by promoting hardware alone. The market appeal of virtual reality devices like PICO has significantly decreased due to the slow development of the software content ecosystem.

The main issue PICO and the VR industry as a whole are facing is the absence of software ecology. There aren’t many applications on the PICO platform right now, and the ones that are are mostly confined to certain categories, like games and films. In contrast, people’s daily lives now rigidly require smartphones and computers because of their considerably bigger application ecosystems, which span every facet of life, work, and social contact. However, VR gadgets are unlikely to become an essential tool in people’s daily lives due to a lack of adequate software support.

In addition, the popularization of VR devices faces other challenges. The first is the price issue. Although brands such as PICO have increased sales through price reduction strategies, the high price is still the reason why many consumers are deterred. The second is the user experience issue. VR devices need to wear helmets and glasses when used, and long-term use may cause discomfort, which also limits their usage scenarios and duration.

However, despite facing many challenges, the VR industry still has great potential. With the continuous advancement of technology and the continuous expansion of application scenarios, VR devices are expected to become a more popular entertainment and work tool in the future. Therefore, for VR brands such as PICO, seeking a breakthrough in the current predicament has become a difficult problem facing them.

VR brands like PICO must work more closely with content creators to encourage the creation of more superior applications in order to address the issue of a dearth of software ecology. Simultaneously, additional user experience enhancements are required to increase the comfort and usability of the equipment. Additionally, the market competitiveness and attractiveness of VR equipment can be increased by lowering the cost of the equipment and increasing the application scenarios.

In summary, while PICO’s internal turmoil has had an influence on the VR business, it has also raised serious concerns for the sector as a whole. The VR sector can only genuinely usher in its own spring by making significant progress in resolving critical issues including the absence of a software ecology, enhancing user experience, and bringing down costs.

In addition to the limitations of applications and technology, the VR industry also faces trade-offs between resource allocation and strategic investment. Many businesses have started to shift their attention from VR to the more reliable and affordable sector of AI as a result of the development of large-scale model technology. This change does not imply that VR is doomed; rather, it illustrates how businesses are more likely to focus their scarce resources on projects that will yield results more quickly. This does not imply, however, that the VR market will fail. Virtual reality (VR) continues to have enormous development potential and market prospects due to the ongoing progress of technology and the ongoing extension of application scenarios. But for businesses hoping to be successful in this industry, how to make wise strategic choices with limited resources will be a question worth pondering.

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