Sony is reportedly suspending production of PSVR2 to clear excess inventory.

After producing more than 2 million units of its latest VR headset, Sony is pausing production to move unsold inventory, Bloomberg reported. The PlayStation VR2 launched last February as a $549 accessory for the PlayStation 5, but shipments have declined every quarter since then, according to IDC data.

Bloomberg suggests that the problem is a lack of content for the headset. PSVR2 is compatible with several AAA games as well as a variety of smaller titles, including Horizon Call of the Mountain, Gran Turismo 7, and entries in the Resident Evil series. However, the price of the headset is $549, which is higher than the PS5 itself, so expectations are high. Bloomberg notes that Meta and Apple face similar content challenges with their headsets.

In addition to pausing headset production, Sony's recent layoffs have affected teams that have been working on VR titles. London Studios was closed, and Firesprite Studios, developer of Horizon Call of the Mountain, was also affected. In total, the layoffs are expected to affect approximately 900 total Sony employees, or 8% of the total workforce.

In an attempt to increase the amount of content available on the headset, Sony recently announced a test of PC support that will give PS VR2 players the ability to access additional games on PC. It's currently unclear how widespread headset support will be for PC titles, but support is expected later this year.

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