Tech promised virtual reality would revolutionize entertainment. That moment might finally be closer than we think.

Virtual reality (VR) has long been heralded as a game-changer for the entertainment industry. This expectation was particularly high around a decade ago with the introduction of the Oculus Rift, the first VR headset that many thought would usher VR into the mainstream. Fast forward to 2025, and while the industry has yet to fully realize that vision, leading tech and entertainment companies are optimistic that the breakthrough moment is nearing. Recent reports reveal that Meta is engaging in discussions with major players like Disney and A24 to create engaging content for its Quest VR headsets. Meanwhile, Apple has made significant updates to its Vision Pro headset, allowing users to share experiences across devices, making it perfect for group movie viewing in 3D. Earlier this year, Apple also showcased an immersive concert by Metallica and has plans for performance upgrades to the Vision Pro. These developments demonstrate that tech giants remain committed to enticing consumers to invest in immersive experiences that go beyond traditional screens. Over the years, headset manufacturers have introduced lighter and more powerful devices, and the industry is beginning to embrace new avenues of storytelling. For instance, Meta recently offered live virtual tickets for Stanley Cup games, echoing previous offerings from the NBA and WNBA. Enthusiasts have enjoyed virtual concerts for years, including immersive sessions with artists like Alicia Keys and performances by Blackpink. Disney also launched a dedicated Disney+ app for the Vision Pro on its debut day in 2024. However, many of these initiatives have served primarily as trials to gauge consumer interest rather than long-term commitments. The VR market has historically faced a dilemma: the need for widespread adoption to attract quality content, while simultaneously requiring premium content to drive mass adoption. Sarah Malkin, director of entertainment content for Meta’s Reality Labs, believes that this cycle is beginning to shift. “The moment will come when mixed reality experiences are seamlessly integrated into our daily lives,” Malkin stated. According to IDC, global shipments of AR and VR headsets rose by approximately 10% in 2024, totaling 7.5 million units. In the United States, shipments surged nearly 30.8% to 3.4 million. Despite predictions of a decline in shipments this year due to postponed product launches, IDC anticipates a significant rebound in 2026, projecting a 98.5% increase to 11.3 million units. However, the road has not been without obstacles. Meta's ambitious Metaverse project has cost the company around $46 billion over three years, with its Reality Labs reporting a $4.2 billion operating loss and only $412 million in sales in the first quarter of 2025. Still, major tech players are pressing on with their VR endeavors. Meta has invested $3.5 billion in eyewear manufacturer EssilorLuxottica to enhance its AI-powered eyewear initiatives. Snap is set to launch new augmented reality spectacles next year, while Google continues to collaborate with companies like Xreal and Samsung on upcoming headsets powered by its new Android XR software. Samsung will be among the first to introduce such a device with its upcoming Project Moohan headset. As advancements in hardware and content offerings continue, industry experts stress the importance of wider adoption. Bertrand Nepveu, a former Vision Pro contributor, noted, “The technical limitations are minimal; now we need people to invest in the ecosystem to reach critical mass.” Despite some high-profile figures in Hollywood exploring VR, immersive storytelling has yet to achieve the widespread popularity necessary for growth. Industry consultant Jenna Seiden emphasized the need for studios to create content specifically designed for VR rather than repurposing existing material. “You can’t simply adapt what you’ve created for platforms like Disney+ or Netflix; it requires a tailored approach to engage audiences effectively,” Seiden explained. Creating exclusive content has been a successful strategy for platforms like HBO Max and Apple TV+, and Seiden believes this model can also apply to VR. Live virtual sports events, for example, can be easily adapted for immersive experiences using 180-degree cameras, paving the way for broader audience engagement. For Hollywood, the emergence of a new distribution platform couldn’t come at a more opportune moment, especially as the media landscape evolves with streaming services, the decline of traditional cable, and post-pandemic box office challenges. Jack Davis, co-founder of CryptTV, suggests that VR headsets could serve as a vital channel for premium content. Investment in VR has lagged behind other innovations like self-driving cars and artificial intelligence. Funding data from Crunchbase reveals that while AI investment surged from $39.96 billion in 2019 to $105.36 billion by 2025, XR funding has fluctuated, peaking at $4.087 billion in 2021 but dropping to $347.69 million by 2025. Despite these challenges, Nepveu believes the tide is turning. “As the utility of AI becomes clearer, budgets are starting to flow back into XR,” he noted. Tech companies striving to develop mixed reality headsets face the dual challenge of proving their worth and ensuring consumer comfort with wearing the devices. Apple has positioned the Vision Pro as a spatial computing tool, emphasizing productivity alongside entertainment. While the timeline for VR’s breakthrough moment remains uncertain, experts’ predictions vary widely, with expectations ranging from immediate to several years out. Some, like Raphaël, envision a significant shift in content consumption, suggesting that traditional 2D media may soon feel as outdated as black-and-white films. “The way we experience content today will evolve, and immersive experiences will redefine how we engage with storytelling,” Raphaël concluded.