Yahoo Finance's Dan Howley breaks down the latest outlook in virtual reality as first details emerge about the next-generation VR system coming to the PS5 console.

Video Transcript

SEANA SMITH: We're going to turn to big tech and talk about Apple because rumors coming out that Apple could be out with a new VR headset. Dan Howley covering the story for us. And Dan, the question is, how big of a game-changer do you think this is going to be?

DAN HOWLEY: Yeah, so Apple is reportedly working on a headset that will offer 8K displays, a slew of external cameras, and cost not so cheap $3,000. So this is going to be a high-end headset if it actually does come to market. And I think really what this says is that Apple still believes in the VR space despite the kind of lackluster response from consumers. And if there is a company that is going to make VR mainstream, it very well could be Apple.

Now, yes, three grand is a ton of money for the average consumer. Mainstream would not go for that. But, I think when you look at something like this, you have to take into account the fact that Apple is really working with a space that hasn't had as much innovation as of late outside of, you know, slightly changing the body of these devices. Making them less reliant on high-end PCs. And apparently this is going to be something that's a standalone device similar to the Oculus Quest but with better technology behind it.

So if Apple can get this off the ground, if it does come out and manages to impress people enough, I think you could see something at a lower price point that really starts to kind of spur people to get into AR and VR. And look, we've seen that with the likes of the Apple Watch. Smartwatches were really niche prior to the Apple Watch launching. You had Google's own line of Apple-- similar smartwatches, but they never really took off. You had Fitbit, basically, which was dominating the space. And now Apple is the leader as far as wearables go. Same thing for wireless earbuds. That's Apple's game now with the Air Pod. So at some point we will see VR take off if Apple really does get into this space.

ADAM SHAPIRO: Dan, the famous quote, $3,000, it's not even leather. What about next generation VR system coming to the PS5 console?

DAN HOWLEY: Yeah, so Sony actually announced today that they are working on a second generation version of their PS VR that's going to work for the Playstation 5. Now, I've used the PS VR for the PS4-- you can see it there on your screen-- and it was fine for the price. I think one of the big issues with that was that it was using controls from an older system called Playstation Move. They weren't even built for VR specifically.

And the screen, which has been kind of one of the Achilles heels of these types of devices, really left a lot-- you wanting a lot. It had this thing called a screen-door effect. Whereas it's if you get very up close to a screen door and you see the individual squares that surround each pixel. Now, that should be better in the next generation version of this PS VR headset, but that's exactly why Apple may be going with 8K displays so that you wouldn't see that kind of screen-door effect and it would really make for a much better experience. But $3,000, that's a lot to ask. I expect Sony's device to be much, much cheaper.