CES 2022 Day 2 – Peace and progress.

Quiet floors but lots to see

• Contrary to the words of Gary Shapiro, CTA CEO, the floors of Vegas are not messy but sparse and quiet.
• It looks to me that fewer exhibitors than the CTA led us to believe have turned up, but given the Omicron tidal wave, this is not a big surprise.
• While the footfall is probably 60-70% less than usual, there is still plenty to see and there are no queues for bathrooms, food stalls and there are plenty of places to sit.
• Hence, I think the CTA has done enough to ensure CES’s continuation as the technology show to visit and I expect that 2023 will be fully back to its normal chaos.

Virtual Reality

• Top of the show is virtual reality where there is a lot of effort and investment going in to make the virtual world as realistic and immersive as possible.
• This includes better resolution, haptic feedback as well as smaller and more comfortable headsets.
• Sony has thrown down the gauntlet to Meta’s Oculus Quest 2 with the launch of the PSVR 2 which represents a substantial upgrade on the PSVR 1.
• However, the device remains physically tethered to the PlayStation 5 meaning that the PSVR 2 is competing in a different category to the Oculus Quest 2.
• It also looks like the Oculus Quest 2 has gone from strength to strength during the Christmas break with the app topping the app store charts as well as downloads being double what they were last year.
• This sets the scene for a Q4 2021 report from Meta Platforms where the Quest 2 has shipped 2m+ units in a single quarter meaning that shipping 10m units in 2022 could become a reality.
• Sony is making investments in content, but I don’t see it meaningfully challenging Oculus.
• This is because the use case is different and VR developers are already making money from the Quest store meaning that they will develop for the Quest before they do anything else.
• This, of course, is why Sony is having to pay up to get good content for its new VR unit.
• 2022 is looking to be a good year for VR ad Meta Platforms remains in pole position.

Automotive

• There is more automotive news and buzz than I expected at the show this year.
• I thought it would be quiet on this front because developments in 2021 have been steady with no real fireworks other than the dreadful performance of many of the EV-related SPACS.
• However, GM used the show to launch probably its most important EV to date which is its electric version of the Silverado truck.
• GM really needed to do this given the level of interest and momentum behind the F-150 Lightning and the other electric truck start-ups.
• GM is taking a different line to Ford as the Lightening is almost exactly the same as the petrol equivalent in terms of looks which given its workhorse status, I think is the right move.
• The electric Silverado is very different looking but is coming at a very attractive price point starting at $40,000.
• GM is also one of the first to give firm targets for going beyond Level 2+ ADAS with the launch of Ultracruise which should be able to handle door to door driving albeit with human oversight.
• Range anxiety is also becoming a thing of the past with new vehicles being able to tout ranges that are greater than a tank of petrol, albeit still at high price points.
• CES is more of a car show than I expected and steady progress is being made towards the time when EVs become so compelling that their adoption really gains momentum.