New figures show that virtual reality may not have lived up to the hype.
Sales of headsets fell by a third in the second quarter of the year compared to the same period in 2017, data from technology research firm IDC shows.
However, the company also said it expected this to be a temporary setback as the VR market "finds its legs".
It said the arrival of new products, including the Oculus Go and HTC Vive Pro, as well as new brands, and the improvements in quality of the experience all point to a positive outlook for the quarters ahead.
The research says much of the contraction in the market is due to a substantial decline in the screenless viewer category, sales of which dropped from 1 million to 409,000 over the period in question.
IDC says this is because the screenless viewer segment of the market was artificially propped up by Samsung, Google and Alcatel in the early days, as they bundled the headsets with smartphones.
But headsets that are tethered to PCs or laptops also saw a 37.3% decline in sales year on year, IDC says, because price reductions by big manufacturers in April, May and June of 2017 could not be sustained.
Standalone headset sales rose a whopping 417% in the period though, driven by the arrival of the Oculus Go/Xiaomi Mi VR, which managed to ship 212,000 headsets.
