The metaverse – a digital world created by the combination of virtual reality (VR), augmented reality (AR) and the internet – is based on a transition to new “immersive hardware interface platforms,” Goldman Sachs (GS) wrote in a research report Tuesday.

The bank is more positive on VR than AR because usable products already exist and it expects development of more hardware in the near term.

The “main race” for VR is between Apple (AAPL) and Meta (FB), the report said. Apple is likely striving for an extension to its ecosystem, and Meta is looking to build a base of users through “attractive hardware pricing and compelling experiences,” it said.

Still, while VR platform technology is getting better, the category has until now “failed to resonate with a broad base of users,” Goldman said.

VR platforms are set to evolve quickly into 2023, and sales of these products will depend on the amount of utility that consumers derive from their use, the note said, adding that VR could become an integral part of remote working if some issues, such as comfort, are resolved.

The bank expects Meta Platforms to launch its Quest Pro product this fall, and Apple to launch its own product in early 2023.

The use of AR is likely to remain limited to costly industrial focused applications for the foreseeable future, the report added.

Read more: Citi Sees Metaverse Economy as Large as $13T by 2030