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Omdia: PSVR2 to sell 3.6M in two years, 7% attach-rate of PS5. Quest headsets to hit 20M in 2022, controls 76% of VR sales. 90% of VR revenue is games


PSVR 2
The launch of Sony PlayStation’s VR2 (PSVR2) in 2023 will boost the market. Omdia expects 3.6 million PSVR2 headsets sales in two years – an attach rate of about 7% among PS5 owners. Although this won’t expand the VR audience significantly, Sony’s commitment should instill confidence in game companies to invest in the format.

Although Apple is strongly rumored to be preparing a headset, details remain elusive – Omdia has therefore not included it in this forecast.

Quest
With 20 million cumulative Meta Quest headset sales projected by the end of 2022, Quest is the biggest VR ecosystem in the world and the leading VR content platform. Meta is dominating the VR market, with 76% of headset sales in 2022. Despite its best efforts however, mass adoption of VR remains long way off, with just 72 million headsets predicted in use by consumers in 2027 – in contrast to over 6 billion smartphones, nearly 3 billion PC households, and 250 million active gaming consoles.

VR is used for gaming
Games are the main reason people buy VR headsets, generating nearly 90% of VR content revenue today. Social VR apps such as Rec Room, VR Chat, and Meta’s Horizon Worlds use games as their draw – it is clear games will be integral to the metaverse.

VR 2022
In the face of macroeconomic challenges, the market continues to expand, with 12.5 million headsets expected to be sold in 2022, and $1.6bn spent on VR content.

I'm assuming that the 12.5 million headsets expected to sell by the end of this year will almost all be Quest 2, probably 11 million at minimum.

As for the PSVR2, the expectation is 3.6 million headsets sold from Feb 2023-Feb 2025. 7% of Sony's attach rate by then means that Omdia expects the PS5 install base to be around 51 million consoles sold by February 2025. I think given we will still be dealing with some supply issues for a bit longer, especially internationally, this seems just a little high but It's plausible.

This means the analyst team sees that first 2 million Sony is producing to sell gradually over time, and they will produce more shipments when necessary until 2025 when the PS5 reaches their projected 2.5 million, instead of selling 2 million headsets in 2-3 months (lol) that some people think is possible for some reason which even Quest 2 could not initially do. The question is will that 3.6 million be front loaded, and once that's hit will it fall off like the PSVR 1 did for the PS4 selling less and less, or will it remain flat or grow from there.

With No PC compatibility, or BC, or wireless, and not being stand alone, and tied to a console that likely won't see any price drop or at best a minor one by Feb 2025, the only way I see growth after that 3.6 million is if Sony somehow gets gaming experiences no one else will have in that period that will make people want to get the headset. But in the face of other announced or hinted competition releasing in 2023, some with better tech, this will be easier said then done.

In fact, Apples headset could turn everything upside down by itself if they execute it right.

In the meantime, Quest 2 controls 76% of VR headset sales. I'm actually curious as to what's selling that other 24%. I'm guessing most of that is other Facebook headsets like Oculus Go and such because I can't see Valve, Vive series, or Pico series selling more than 3% together. It really is a Quest dominated industry, for now. As I said Apple has the brand and loyal followers to potentially create a more competitive scene, but the upcoming headsets from other companies may too.

Despite large money in industry, aerospace, military, training, and medical, VR is 90% a gaming device by revenue. The tech isn't there yet for these other applications, let alone productivity, and even surprisingly media like movies and video. Games are still the primary reason people care about the current generation of VR headsets and I don't see anything of the upcoming next generation so far, that is going to change that.

However, the software library is lacking severely for VR compared to the prices of the headsets. That would explain the still niche number of headsets sold outside the Quest 2, which can play most of the low-budget and shovelware games for a lower price than the others. I think headset adoption will rise if there's more quality releases, but that means more than just budget. There has to be something in the gameplay as well that can get not just gamers, but casuals to buy for headset sales to rise.
 
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Very sus here. Especially with that price tag.

PSvr sold 5m. it took them around 4-5 years to sell that much.

I think they are counting on some strong early sales since they will be among the earliest for the next wave of VR 2.0 headsets.

But even then it does seem a little steep. There's also a bunch of new headsets coming over within a few months of the PSVR2 feb launch which could shake things up, and Apple is sometime in the first half of the year too.
 

yurinka

Member
I think it will sell these 3.5M on its first year, and 2M of them on launch month.

PSVR2 is cheaper than the full PSVR1 package was when released, and it's also cheaper than similar headsets. And I may be wrong but at launch or aprox. will have Horizon CoM, Resident Evil Village and RE4R plus more.
 
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FrankWza

Member
I think they are counting on some strong early sales since they will be among the earliest for the next wave of VR 2.0 headsets.

But even then it does seem a little steep. There's also a bunch of new headsets coming over within a few months of the PSVR2 feb launch which could shake things up, and Apple is sometime in the first half of the year too.
I think that there will be more buyers that didn’t have a VR1 than VR1 buyers who won’t be getting VR2. That’s the difference in attach rate. It really shouldn’t be an issue as long as their first party support is there. games that scream VR support like GTVR
 
I think it will sell these 3.5M on its first year, and 2M of them on launch month.

PSVR2 is cheaper than the full PSVR1 package was when released, and it's also cheaper than similar headsets. And I may be wrong but at launch or aprox. will have Horizon CoM, Resident Evil Village and RE4R plus more.

People keep forgetting this part when they do these analysis, it's hilarious. PSVR 1 needed Move controllers (not included; $100) and camera (also not included; $60). Those together added an extra $160 on top of the $399 for the headset itself, or $560 combined. Meanwhile PSVR2 has everything in one package for $549.

On those grounds alone it's a better value, that's not even factoring in all the hardware and build enhancements. I also think these estimates for its first two years are lowballed; they should be able to hit 3.6 million within the first year or 1.5 years at most, and lifetime I can see it doing something north of 10 million.

People are forgetting that VR is more palatable with the market now than it was in 2016, and while the Quest devices may be usable standalone, does anyone...actually have any data showing how MANY of those 10 million people use Quest in a standalone capacity? How many use it on PC? How many of those who use it on PC also have a PS5? I don't think those with Quest devices that use them on PC would be fretted with paying for a PSVR2 if it's only usable on a PS5, value is definable in metrics other than just MSRP costs btw.
 

yurinka

Member
People keep forgetting this part when they do these analysis, it's hilarious. PSVR 1 needed Move controllers (not included; $100) and camera (also not included; $60). Those together added an extra $160 on top of the $399 for the headset itself, or $560 combined. Meanwhile PSVR2 has everything in one package for $549.

On those grounds alone it's a better value, that's not even factoring in all the hardware and build enhancements. I also think these estimates for its first two years are lowballed; they should be able to hit 3.6 million within the first year or 1.5 years at most, and lifetime I can see it doing something north of 10 million.

People are forgetting that VR is more palatable with the market now than it was in 2016, and while the Quest devices may be usable standalone, does anyone...actually have any data showing how MANY of those 10 million people use Quest in a standalone capacity? How many use it on PC? How many of those who use it on PC also have a PS5? I don't think those with Quest devices that use them on PC would be fretted with paying for a PSVR2 if it's only usable on a PS5, value is definable in metrics other than just MSRP costs btw.
You also have to remember that there's the inflation. $560 today is cheaper than $560 in 2016. And some PSVR1 games needed 2 move controllers.
 
3.6m is not an install base worthy of any real third party investment. It's dead already aside from indies - which will be on Quest in abundance anyway - and the occasional first party games. Even Dreamcast's 9m, at a time when game development costs were a fraction of what they are now, couldn't attract any decent third party support.

I'd be more interested in PSVR2 if it were wireless obviously, but that aside, even if it were not exclusively tied to a closed platform. If I could use it on my PS5 and PC, well that would feel like a better use of my money.
 
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reinking

Gold Member
miss cleo 90s GIF
 

StreetsofBeige

Gold Member
People keep forgetting this part when they do these analysis, it's hilarious. PSVR 1 needed Move controllers (not included; $100) and camera (also not included; $60). Those together added an extra $160 on top of the $399 for the headset itself, or $560 combined. Meanwhile PSVR2 has everything in one package for $549.

On those grounds alone it's a better value, that's not even factoring in all the hardware and build enhancements. I also think these estimates for its first two years are lowballed; they should be able to hit 3.6 million within the first year or 1.5 years at most, and lifetime I can see it doing something north of 10 million.

People are forgetting that VR is more palatable with the market now than it was in 2016, and while the Quest devices may be usable standalone, does anyone...actually have any data showing how MANY of those 10 million people use Quest in a standalone capacity? How many use it on PC? How many of those who use it on PC also have a PS5? I don't think those with Quest devices that use them on PC would be fretted with paying for a PSVR2 if it's only usable on a PS5, value is definable in metrics other than just MSRP costs btw.
Thats not saying much because for just about anything tech related, prices are similar but the technology improves.

My last 3 PCs are all laptops costing about $1,100 cdn each. Low and behold the one I'm typing on now is the best one and even has a bigger screen size than the first one I bought around 2009.
 

Kataploom

Gold Member
Seems like VR is basically very niche gimmick, not "the future"... It's literally the present, it's just that it doesn't have the wide appeal some wish it had... The games I've played on public arcades and the games I see people talking about make me think it's mostly targeted to mobile gaming crowd, like the same crowd that bought Wii in masses, it just fails to be a big hit, seems more like another cool option for parties, like just dance or Mario kart, but no more than that
 

FrankWza

Member
People keep forgetting this part when they do these analysis, it's hilarious. PSVR 1 needed Move controllers (not included; $100) and camera (also not included; $60). Those together added an extra $160 on top of the $399 for the headset itself, or $560 combined. Meanwhile PSVR2 has everything in one package for $549.

On those grounds alone it's a better value, that's not even factoring in all the hardware and build enhancements. I also think these estimates for its first two years are lowballed; they should be able to hit 3.6 million within the first year or 1.5 years at most, and lifetime I can see it doing something north of 10 million.

People are forgetting that VR is more palatable with the market now than it was in 2016, and while the Quest devices may be usable standalone, does anyone...actually have any data showing how MANY of those 10 million people use Quest in a standalone capacity? How many use it on PC? How many of those who use it on PC also have a PS5? I don't think those with Quest devices that use them on PC would be fretted with paying for a PSVR2 if it's only usable on a PS5, value is definable in metrics other than just MSRP costs btw.
People also bring up attach rate as a negative. It was a $300-$500 peripheral. Ask thrustmaster, hori and Logitech if they want to sell 5 million fight sticks or steering wheels in a generation on one console
 
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tmlDan

Member
Anyone notice how they're announcing a couple of VR2 titles again today? X8 and Altair Breaker.

I think if they keep pushing development they could easily surpass that in less time. I am a new VR adopter and i preordered, the tech just works better and is less likely to make you sick, it's more accessible than before.
 

poppabk

Cheeks Spread for Digital Only Future
Seems like VR is basically very niche gimmick, not "the future"... It's literally the present, it's just that it doesn't have the wide appeal some wish it had... The games I've played on public arcades and the games I see people talking about make me think it's mostly targeted to mobile gaming crowd, like the same crowd that bought Wii in masses, it just fails to be a big hit, seems more like another cool option for parties, like just dance or Mario kart, but no more than that
It definitely is the future but currently it's niche because of the size and weight of the headsets. Once they hit 'bulky sunglasses' level at a $500 price point then it is going to be huge.
It's currently a pretty shitty option for parties, seeing as you are completely closed off from the world and barring companion app games need several headsets.
It's fucking amazing for sims though and first person shooters.
 
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With No PC compatibility, or BC, or wireless, and not being stand alone, and tied to a console that likely won't see any price drop or at best a minor one by Feb 2025, the only way I see growth after that 3.6 million is if Sony somehow gets gaming experiences no one else will have in that period that will make people want to get the headset. But in the face of other announced or hinted competition releasing in 2023, some with better tech, this will be easier said then done.

PSVR1 had over 5 million in sales and it was basically a prototype platform. PSVR2 is a much more mature and compelling platform for VR. The cost of entry for a high end VR experience is quite low in comparison to what you would need on PC.

IMHO there's no reason to believe that PSVR2 will have worse adoption than PSVR1. It should easily be growing and have a more compelling lineup of games. We haven't really seen the extent of Sony's PSVR2 plans. I am sure many games WILL be BC with PSVR2 updates, and we will get compelling games like AstroBot in due time.
 
quest 3 is gonna eat their lunch

Not really competing for the same market. Quest 3 is low end wireless market. Quest has actually kept VR in the gaming ghetto and regressing to a certain degree.

I think Quest has basically exhausted a lot of the gimmicky users that just want to experience VR, while people will flock to a more compelling experience thanks to PSVR2.
 
Past launch, I don’t think the PSVR2 will be meet with much success. Especially when a Quest 3 will launch shortly after.

What games will Quest 3 have that are compelling that won't otherwise come to PSVR2?

The fact remains that VR kind of peaked with Half Life Alyx and has regressed because most development shifted away from creating ambitious AAA type titles. Sony PSVR2 is going to bring that back into focus again, which is good for VR.

I just don't think most customers find Quest to be compelling. But it simply has the least barriers to entry to experiencing VR for the first time which is one reason why it has sold a lot. But I think those gamers will eventually want a more compelling experience.
 

ArtHands

Thinks buying more servers can fix a bad patch
People keep forgetting this part when they do these analysis, it's hilarious. PSVR 1 needed Move controllers (not included; $100) and camera (also not included; $60). Those together added an extra $160 on top of the $399 for the headset itself, or $560 combined. Meanwhile PSVR2 has everything in one package for $549.

On those grounds alone it's a better value, that's not even factoring in all the hardware and build enhancements. I also think these estimates for its first two years are lowballed; they should be able to hit 3.6 million within the first year or 1.5 years at most, and lifetime I can see it doing something north of 10 million.

People are forgetting that VR is more palatable with the market now than it was in 2016, and while the Quest devices may be usable standalone, does anyone...actually have any data showing how MANY of those 10 million people use Quest in a standalone capacity? How many use it on PC? How many of those who use it on PC also have a PS5? I don't think those with Quest devices that use them on PC would be fretted with paying for a PSVR2 if it's only usable on a PS5, value is definable in metrics other than just MSRP costs btw.

People are already trying to forget that PSVR and PSVR2 require a PS4 (not included, $400) and PS5 (not included, at least $400), respectively too.

141wc5b.jpg
 
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poppabk

Cheeks Spread for Digital Only Future
Not really competing for the same market. Quest 3 is low end wireless market. Quest has actually kept VR in the gaming ghetto and regressing to a certain degree.

I think Quest has basically exhausted a lot of the gimmicky users that just want to experience VR, while people will flock to a more compelling experience thanks to PSVR2.
Quest 2 is not that far behind the PSVR2 in terms of specs, good chance that besides OLED the Quest3 will out spec the PSVR2.
 
Quest 2 is not that far behind the PSVR2 in terms of specs, good chance that besides OLED the Quest3 will out spec the PSVR2.

That’s not the issue.

The issue is that Quest can be played without a PC

So most development shifted to that bare minimum spec

Doubtful Quest 3 outspecs PSVR2
 
I think it will sell these 3.5M on its first year, and 2M of them on launch month.

PSVR2 is cheaper than the full PSVR1 package was when released, and it's also cheaper than similar headsets. And I may be wrong but at launch or aprox. will have Horizon CoM, Resident Evil Village and RE4R plus more.

Agreed. It'll sell out of it's launch allotment (2mil) so I suspect it won't be hard to hit ~3mil in a year's time......if not sell even more.
 

lh032

I cry about Xbox and hate PlayStation.
Very sus here. Especially with that price tag.

PSvr sold 5m. it took them around 4-5 years to sell that much.
why are you that surprise? the price is not that expensive.

This is PSVR2, its more likely to sell even better than PSVR.
Demand will increase for this kind of new tech.
VR is still a niche market, it still can grow.
 
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FrankWza

Member
Agreed. It'll sell out of it's launch allotment (2mil) so I suspect it won't be hard to hit ~3mil in a year's time......if not sell even more.
From what I’ve seen, they have an order for that but it’s adjustable depending on how it starts off and they can lower the amount if initial sales are lower than projected.
 
PSVR1 had over 5 million in sales and it was basically a prototype platform.

it also had early VR hype were consumers were all over the technology, a well scoring exclusive library, 1 price cut, demos all over stores, bundles, giveaways, and was attached to a console that had around 90 million sales by the time they reached that 5 million. The PC comparison is also dumb because that ignores the Quest or similar priced headsets also less than PCVR that are stand alone or can be connected to a PC anyway.

IMHO there's no reason to believe that PSVR2 will have worse adoption than PSVR1. It should easily be growing and have a more compelling lineup of games. We haven't really seen the extent of Sony's PSVR2 plans. I am sure many games WILL be BC with PSVR2 updates, and we will get compelling games like AstroBot in due time.

Reasons being the above, high price, wired, tethered to a PS5 in mid growth which means that many potential adopters would have to buy PSVR2 and PS5 to jump in which would be an even bigger barrier to entry, and it's unlikely enough PS5 will receive a price cut after the next to years, let alone the PSVR2. One reason for good first two year sales of PVR1 is not only because of the later 1 price drop, but they cut the PS4 to $299, there's no equal here, and in some countries PS5 is adding a price rise.

Astrobot wasn't even selling PSVR consoles in the number that the (frankly too overhyped) review gave it, even if they did a followup they are going to need games to appeal to casuals as well to sell headsets.

You being sure that PSVR2 will suddenly support updates for BC later is also strange, given Sony effectively wrote it off even with an excuse that further rights it off. The best you can helped for is some PSVR1 games get enhanced ports. Then you have new competition from upcoming headsets.

It's not impossible to do better than PSVR1 but let's not pretend the cards as they are now look stacked against the headset. This analysis already expects a slow crawl over the next two years from PSVR2's launch
 
I'm pretty sure Apple is making an AR headset for a digital lifestyle that replaces the smartphone. Its closest cousin should be the Hololens. It's not a VR headset for gaming.

They are working on a VR headset this has been confirmed. They have more than one headset in development, and glasses reportedly.
 

drezz

Member
Sony will have to lay out some games worthy of the commitment; for people on the fence, can't sit on their hands here and let thirdparty and indies to carry it.
Need to have Sony exlusive tier games coming out for it, either 100% VR or some VR contet of said games. Like GoW:R has some amazing areas and vistas, experiencing them in VR would be AMAZING! The
underwater Nook's area, Ragnarock area,when calling the world serpent AGAIN, Sid's House,etc
So much eye candy that would look just: **Chef's Kiss** not to mention the soundtracks that could be singing in the background.
Expecting at least half of the multigen games coming out the next year too be able to play both flat and VR(as a Hybrid game) too help with that; thinking GTA6 or maybe even COD? Games of this caliber with VR as a option.
Im sure we will get a Astro DEMO/PLAYROOM2 too help showcasing what can be done with PSVR2 both couch coop and solo stuff, fun mini games like the previous, but TBA I suppose... waiting for Christmas time maybe?

I've already preorded a PSVR2 and I already have a Quest 2 and PSVR1...
PSVR1 is collecting dust and sitting on a fun mount with googly eyes and I do my VR play's on Quest 2 connected to PC.
Im sure we will have PSVR2 spoofed as a Quest 2 within 24 hours of launch and with higher fov and OLED I'll end up using that over Quest 2... when times come.

I can see it going both ways, selling both higher and lower.
All depending on how they stoke the flames and hype WITH THE HELP OF GAMES and what not, price is no way around anymore... only thing left is giving its WORTH, and Sony has both fullfilled and failed there previously...

Go on Sony...
Show us the GAMES!
 

Sakura

Member
People keep forgetting this part when they do these analysis, it's hilarious. PSVR 1 needed Move controllers (not included; $100) and camera (also not included; $60). Those together added an extra $160 on top of the $399 for the headset itself, or $560 combined. Meanwhile PSVR2 has everything in one package for $549.

On those grounds alone it's a better value, that's not even factoring in all the hardware and build enhancements. I also think these estimates for its first two years are lowballed; they should be able to hit 3.6 million within the first year or 1.5 years at most, and lifetime I can see it doing something north of 10 million.

People are forgetting that VR is more palatable with the market now than it was in 2016, and while the Quest devices may be usable standalone, does anyone...actually have any data showing how MANY of those 10 million people use Quest in a standalone capacity? How many use it on PC? How many of those who use it on PC also have a PS5? I don't think those with Quest devices that use them on PC would be fretted with paying for a PSVR2 if it's only usable on a PS5, value is definable in metrics other than just MSRP costs btw.
You didn't need move controllers for PSVR1. I never had them. Could still play plenty of games like REVR.
 

DenchDeckard

Moderated wildly
I think quest 3 is going to decimate any chance psvr 2 had...obviously it needs to be priced right and offer decent enough performance.

But if its say the same price as a psvr 2, wireless and decent enough graphics plus can be tethered to pc....GG psvr 2.
 
it also had early VR hype were consumers were all over the technology, a well scoring exclusive library, 1 price cut, demos all over stores, bundles, giveaways, and was attached to a console that had around 90 million sales by the time they reached that 5 million. The PC comparison is also dumb because that ignores the Quest or similar priced headsets also less than PCVR that are stand alone or can be connected to a PC anyway.

PSVR2 doesn't need "early VR hype" when the entire VR space is much bigger, and therefore there's more interest in general, than back in 2016.

Why won't PSVR2 have a well scoring exclusive library?
Why won't PSVR2 eventually have a price cut?
Why won't PSVR2 also have demos all over stores?
Why won't PSVR2 not have bundles, giveaways, and eventually be attached to a console with 90+M sold?

The userbase for the enthusiast market isn't highly correlated to total overall console sales, we see that now with PS5 sales figures vs. PS4. I would argue PSVR2 is much the same. In other words, it's more important for PSVR2 to gain genuine interest and engagement than it is for it to sell as many units as possible.

Reasons being the above, high price, wired, tethered to a PS5 in mid growth which means that many potential adopters would have to buy PSVR2 and PS5 to jump in which would be an even bigger barrier to entry, and it's unlikely enough PS5 will receive a price cut after the next to years, let alone the PSVR2. One reason for good first two year sales of PVR1 is not only because of the later 1 price drop, but they cut the PS4 to $299, there's no equal here, and in some countries PS5 is adding a price rise.

The price is not any higher than PSVR1 when it launched, adjusted for inflation. In fact, it's cheaper. Being released earlier in console lifecycle doesn't preclude it from having higher sales. PS5 shipments will be increasing dramatically in the next year as supply increases. The enthusiast market is the one that will buy PSVR2, not the mainstream ones that eventually lead to 100M+ console sales.

Astrobot wasn't even selling PSVR consoles in the number that the (frankly too overhyped) review gave it, even if they did a followup they are going to need games to appeal to casuals as well to sell headsets.

You being sure that PSVR2 will suddenly support updates for BC later is also strange, given Sony effectively wrote it off even with an excuse that further rights it off. The best you can helped for is some PSVR1 games get enhanced ports. Then you have new competition from upcoming headsets.

It's not impossible to do better than PSVR1 but let's not pretend the cards as they are now look stacked against the headset. This analysis already expects a slow crawl over the next two years from PSVR2's launch

Overhyped is comical, but you're free to have your opinion. It stands as one of the best VR games by far. It should not come as a surprise that there will be MANY BC updates to titles, but they require more extensive patches to re-work everything for better performance and controls than what a straight BC port would allow. I don't see why you think this won't happen to the most popular titles. Sony didn't write off patches for titles, they wrote off 100% BC right off the bat.

I don't think the cards are stacked against it at all. It's much better technology, in an era where hardware and enthusiasts seem to be a growing component of the gaming landscape. Just look at all the shortages we've had the past few years.

I think this analysis is fairly conservative.
 

StreetsofBeige

Gold Member
Bloomberg reported Sony planned to have 2 million units ready by March 2023, so basically in the first month of launch. As for this 3.6 million prediction in 2 years, that seems to be an extremely conservative prediction given how much they're reported to have ready to go at launch.
Ah. My mistake.
 

Crayon

Member
It should sell more than the first one. The first one was like the same price and it was the kiddy pool of VR. This thing kicks ass compared to what's out for under $1,000 right now. This has a better launch lineup, too.
 

ZoukGalaxy

Member
Well, it will surely not reach this number if you can't buy it.
Still waiting a fucking invite to have a "chance" to pre-order it.
My digital library is literally exploding from PSVR games and I haven't been "selected " while some who never touched VR have received their invite. I guess I'm not the target and they want new customers.

Frustration is not enough powerful word to describe my feelings about this fiasco invite system from Sony. I politely INVITE you to go fuck yourself Sony for this 🤘

Mad Rainn Wilson GIF by T-Mobile

*replace the chair by a PS5

/partial off topic rant
 
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