Although content is limited.

Sales of virtually reality headsets are off to a strong start in Australia with 216,000 units sold in 2016, according to a new study by technology analyst firm Telsyte. Mobile VR consumed around 70% share of units sold.

The ‘Telsyte Australian VR & AR Market Study 2017’ shows that nearly half of all device revenues were generated by the Sony PlayStation VR which is experiencing strong initial demand from video gamers. In addition, almost half of those looking to purchase a VR headset are interested in using it for games, movies or entertainment purposes.

Telsyte estimates VR penetration will reach 25.5% of households by 2021, based on attachment rates of headsets to VR capable smartphones, games consoles and higher end gaming PCs. Adoption of VR headsets will be driven by support from content producers, in particular the AAA games titles and franchises. However, many production houses are waiting for broader adoption and a clear winner to emerge before making large scale investments.

“We are entering a chicken and egg scenario with VR adoption,” Telsyte managing director, Foad Fadaghi said. “Developers are looking for a growing base of users before making large investments, at the same time mainstream technology buyers are waiting for killer VR content or applications.”

The wide range of VR products available is also impacting consumer and developer uptake. Telsyte believes that the choice of three main platforms (mobile, console, PC) and four main ecosystems (Oculus, PlayStation VR, HTC Vive/Stream VR, Google Daydream) is impacting consumer purchase decisions. This will be further exasperated with more options in second half 2017.