When Facebook (NASDAQ:FB) bought Oculus in 2014, Samsung released Gear VR in 2015, and HTC released the Vive in 2016, it seemed like the world of virtual reality was upon us. Soon, we would all have VR headsets and we could live in a world of our own with the convenience of being at home. But Oculus Rift, Gear VR, and HTC Vive haven't exactly become household devices, and there are signs companies are starting to realize the disappointment.
Facebook recently lowered the price of its Rift headset from an original $800 to $399 for a short-term sale, ultimately settling on $499 recently. You don't discount a product that's selling like hotcakes, indicating that Oculus's flagship product isn't living up to expectations. According to SuperData, HTC Vive isn't selling much better. Is VR doomed to disappoint, like 3D TV did, or is the industry just setting up for growth?
Image source: Getty Images.
Rather than becoming a big business, VR has thus far been a small hobby for VR companies. According to Venture Beat and data from SuperData, the immersive VR systems of HTC Vive and Oculus Rift are selling fewer than 100,000 units per quarter. And while Gear VR and Alphabet(NASDAQ:GOOG)(NASDAQ:GOOGL)subsidiary Google's Daydream are selling more units, they're less expensive and less advanced and may be given away for free.
Data source: SuperData via VentureBeat.
To attract developers and content creator, hardware companies need to increase adoption rapidly. And they're not doing that today.
The problem with early VR systems is that they're either not powerful enough or so powerful they're difficult to use. Samsung VR uses common Samsung headsets, as does Google Cardboard, which limits their processing power. Sony (NYSE:SNE) Playstation VR requires a console and Oculus Rift and HTV Vive require high-powered computers, which aren't exactly items the average person has in their home today. The hardware dynamic doesn't make VR easy to adopt, even for early adopters.
Compounding the problem facing VR is that content is very limited. There aren't a plethora of immersive games people can spend days playing, like you could do on a console, or video content that would make movies a viable reason to go VR. And this is where we get into the chicken-and-egg challenge VR companies will face going forward.
If there was either amazing hardware or amazing content in VR, it may drag the other along, creating a virtuous cycle of adoption. But hardware isn't amazing yet and content that could attract users hasn't emerged yet.
The two biggest video game content creators haven't even gotten into the game. Activision Blizzardand Electronic Artshave looked into VR, but aren't developing much content yet. EA CEO Andrew Wilson recently said:
People seem to have come to terms of the fact that VR while an unbelievably wonderful innovation for how you consume interactive entertainment and all forms of entertainment for that matter is going to take a couple of years at least to going to get to a point where it is truly a mass-market consumer opportunity.
In other words, content creators think VR will be big someday but not today. And they're not going to take a chance investing on the bleeding edge.
VR is definitely an interesting technology, but hardware costs need to come down and content and quality need to improve to grow the industry. I think the early phase of growth will be in location-based VR, much like arcades were the home of the video game industry in the 1970s. Once computing power catches up, maybe it will make sense for VR to be something everyone has in their home.
The bottom line is that VR just doesn't move the needle for most big companies yet -- and it may not for years to come.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fools board of directors. Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of and recommends ATVI, Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool recommends EA. The Motley Fool has a disclosure policy.
Visit link:
Is Virtual Reality the Future or Another Disappointing Technology? - Motley Fool
- Virtual Reality - Virtual Reality - December 9th, 2016 [December 9th, 2016]
- VR, Virtual Reality | Virtalis - December 11th, 2016 [December 11th, 2016]
- Road to VR - Virtual Reality News - December 13th, 2016 [December 13th, 2016]
- VR Porn, Exclusive Virtual Reality Sex Videos. WankzVR - December 19th, 2016 [December 19th, 2016]
- Immersion (virtual reality) - Wikipedia - December 22nd, 2016 [December 22nd, 2016]
- Virtual Reality - Setting the Record Straight One Post at ... - December 22nd, 2016 [December 22nd, 2016]
- NBA broadcasts games in virtual reality with NextVR ... - December 28th, 2016 [December 28th, 2016]
- Virtual Reality | Future | Fandom powered by Wikia - December 28th, 2016 [December 28th, 2016]
- Virtual reality, one year out: What went right, what didn't ... - December 28th, 2016 [December 28th, 2016]
- Virtual Reality Toronto - VRTO - Virtual Reality, Toronto - January 9th, 2017 [January 9th, 2017]
- Virtual Reality - January 24th, 2017 [January 24th, 2017]
- Virtual reality headset - Wikipedia - January 27th, 2017 [January 27th, 2017]
- Tribemix Virtual Reality for Dementia Care - YouTube - January 27th, 2017 [January 27th, 2017]
- Virtual Reality Has Arrived in the Art World. Now What? - New York Times - February 7th, 2017 [February 7th, 2017]
- Virtual Reality Experience College Swim Meet - SwimSwam - February 7th, 2017 [February 7th, 2017]
- Explore The Amazon With This Stunning 360 Virtual Reality Video - IFLScience - February 7th, 2017 [February 7th, 2017]
- Adobe's Path To Entering The Virtual Reality Story - Forbes - February 7th, 2017 [February 7th, 2017]
- Europe's virtual reality sector has grown to nearly 300 companies - VentureBeat - February 7th, 2017 [February 7th, 2017]
- Virtual reality to recount Maori life - Otago Daily Times - February 8th, 2017 [February 8th, 2017]
- John Wall: 'I really thought I was gonna die' - ESPN.co.uk - February 8th, 2017 [February 8th, 2017]
- Travel Brands and Meeting Planners Are Using Virtual Reality to Drive Conversion - Skift - February 8th, 2017 [February 8th, 2017]
- Sportsnet to launch 360 Virtual Reality for six NHL games - Sportsnet.ca - February 8th, 2017 [February 8th, 2017]
- In the burgeoning world of virtual reality, storytelling is both cutting-edge and old-fashioned - Los Angeles Times - February 8th, 2017 [February 8th, 2017]
- What parents need to know about virtual reality - Deseret News - February 8th, 2017 [February 8th, 2017]
- 8 Real Success Tips From Women Building The Future With Virtual Reality - Forbes - February 8th, 2017 [February 8th, 2017]
- Virtual reality: prepare for the revolution - AndroidPIT - February 9th, 2017 [February 9th, 2017]
- Prospects Dimming For Facebook's Oculus Rift Virtual-Reality Headsets - Investor's Business Daily - February 9th, 2017 [February 9th, 2017]
- WATCH: YouTube Stars Create Amazing La La Land-Inspired Virtual-Reality Music Video - PEOPLE.com - February 9th, 2017 [February 9th, 2017]
- Virtual Reality addiction threat prompts cautious approach as VR nears 'smartphone-like' take-off - ABC Online - February 9th, 2017 [February 9th, 2017]
- Archaeology turns to virtual reality with Lithodomos start-up - The Sydney Morning Herald - February 9th, 2017 [February 9th, 2017]
- The Future Of Virtual Reality: Mobile VR Platforms In A Battle - Forbes - February 9th, 2017 [February 9th, 2017]
- Virtual reality is boring compared to Beyonc's actual reality - A.V. Club (blog) - February 9th, 2017 [February 9th, 2017]
- Google wants to use Chrome to suck you into virtual reality - CNET - February 9th, 2017 [February 9th, 2017]
- Ringling showcase offers glimpse of virtual reality in Sarasota - Sarasota Herald-Tribune - February 11th, 2017 [February 11th, 2017]
- Allegheny County teachers see how to open world to classrooms with virtual reality - Tribune-Review - February 11th, 2017 [February 11th, 2017]
- Virtual Reality Could Be Your Next Prescription - DesignNews - February 11th, 2017 [February 11th, 2017]
- DACC & Virgin Galactic team up to explore virtual reality - Las Cruces Sun-News - February 11th, 2017 [February 11th, 2017]
- Boulder International Film Festival diving into virtual reality with 2017 slate - Boulder Daily Camera - February 11th, 2017 [February 11th, 2017]
- 'JAEPO 2017' Shows That Japanese Arcade Gaming Is Beginning To Incorporate Virtual Reality - Forbes - February 11th, 2017 [February 11th, 2017]
- Wichita-created virtual reality could take jurors into crime scenes ... - Wichita Eagle - February 11th, 2017 [February 11th, 2017]
- Why this analyst is warning investors to steer clear of virtual reality in 2017 - L.A. Biz - February 12th, 2017 [February 12th, 2017]
- See the Newcastle virtual reality room helping children with autism overcome their phobias - ChronicleLive - February 12th, 2017 [February 12th, 2017]
- See This Famous Masterpiece Recreated in Virtual Reality - UploadVR - February 12th, 2017 [February 12th, 2017]
- Samsung Goes for a New Look in Virtual Reality at New York Fashion Week - Fortune - February 14th, 2017 [February 14th, 2017]
- Virtual reality has a growing impact on college football - FOXSports.com - February 14th, 2017 [February 14th, 2017]
- This company is opening a virtual reality multiplex this fall - Mashable - February 14th, 2017 [February 14th, 2017]
- Personalized virtual reality displays match eyesight | Stanford News - Stanford University News - February 14th, 2017 [February 14th, 2017]
- Virtual reality weather add-ons let you feel the sun and wind - New Scientist - February 14th, 2017 [February 14th, 2017]
- Virtual reality is still too isolating to be 'the next big thing' in tech - CBC.ca - February 14th, 2017 [February 14th, 2017]
- Miyamoto Still Has Doubts About Virtual Reality - GameSpot - February 14th, 2017 [February 14th, 2017]
- Virtual reality industry 'in need of a jump-start,' Imax CEO says at ... - Los Angeles Times - February 16th, 2017 [February 16th, 2017]
- Doctors use virtual reality to prepare children for scans - BBC News - February 16th, 2017 [February 16th, 2017]
- Gamers get a taste of virtual reality with new Missoula arcade - KTVH - February 16th, 2017 [February 16th, 2017]
- Revised orca shows, new virtual-reality swim with whales and new ... - Los Angeles Times - February 16th, 2017 [February 16th, 2017]
- Transcend VR Sues Virtual-Reality Investor Mike Rothenberg - Wall Street Journal (subscription) - February 16th, 2017 [February 16th, 2017]
- This Powerful Gaming Executive Isn't Worried If Virtual Reality Fails - Fortune - February 16th, 2017 [February 16th, 2017]
- Virtual reality helps visitors transport back in time to ancient Roman ... - CBS News - February 16th, 2017 [February 16th, 2017]
- Boise-area entrepreneurs see opportunity in virtual reality amid real-world perils - Idaho Statesman - February 17th, 2017 [February 17th, 2017]
- 3D printing, virtual reality used to bring dinosaur to 'life' - The Hindu - February 17th, 2017 [February 17th, 2017]
- Virtual reality startup Relax VR wants to relieve stress in corporate environments - ZDNet - February 17th, 2017 [February 17th, 2017]
- Escape with Virtual Reality, travelogue at Way - Sentinel-Tribune - February 18th, 2017 [February 18th, 2017]
- VR1: Idaho's first virtual reality arcade opens in Eagle - KBOI-TV - February 18th, 2017 [February 18th, 2017]
- NBA launches virtual reality app with Google Daydream - USA TODAY - February 18th, 2017 [February 18th, 2017]
- Virtual Reality Is Bringing These Lost Worlds Back to Life - NBCNews.com - February 18th, 2017 [February 18th, 2017]
- Now You Can Feel Wind and Temperature While in Virtual Reality - Futurism - February 18th, 2017 [February 18th, 2017]
- IMAX's first virtual reality arcade is here and it is beautiful - The Verge - The Verge - February 18th, 2017 [February 18th, 2017]
- VR Sales Numbers Are Wet Blanket on Adoption Hopes - Fortune - February 20th, 2017 [February 20th, 2017]
- Virtual Reality to Make MRIs Less Scary - Financial Tribune - February 20th, 2017 [February 20th, 2017]
- How Valve is Taking a Nintendo-like Approach to Virtual Reality - UploadVR - February 20th, 2017 [February 20th, 2017]
- Inside an IMAX virtual reality arcade - VentureBeat - February 20th, 2017 [February 20th, 2017]
- With New Invention, Virtual Reality's Potential for Magic Gets Real - New York Times - February 20th, 2017 [February 20th, 2017]
- What Ubisoft learned from its first virtual reality games - VentureBeat - February 20th, 2017 [February 20th, 2017]
- Virtual Reality Was a Flop in 2016. Will 2017 Be the Year It Takes Off? - Motley Fool - February 20th, 2017 [February 20th, 2017]
- Virtual reality to take a decade as users chicken out, study shows - The Australian Financial Review - February 20th, 2017 [February 20th, 2017]
- Virtual reality is making surgery simpler - Deniz Ergurel (subscription) (blog) - February 20th, 2017 [February 20th, 2017]
- Virtual reality has potential to add new dimensions to marketing - Business Day (registration) - February 21st, 2017 [February 21st, 2017]
- Virtual reality will take 'maybe a decade' to become mainstream - Mashable - February 21st, 2017 [February 21st, 2017]
- #MadeInRVAJr: Hanover siblings want to bring virtual reality to your event - WRIC - February 22nd, 2017 [February 22nd, 2017]
- Making Virtual Reality More Accessible - VideoInk - February 22nd, 2017 [February 22nd, 2017]
- New virtual reality lounge opening in the Capital Region - NEWS10 ABC - February 22nd, 2017 [February 22nd, 2017]