Monthly Archives: July 2017

Fans of virtual reality felt a punch to the gut this week as Altspace VR announced it would hold its last social VR gathering on August 3 and then shut down.

AltspaceVR was a social space in VR where people could gather in environments that resembled virtual worlds. They could create their own avatars and chat with friends. As such, Altspace VR was like a harbinger of what the world would look like as a virtual society. Facebook followed up with its own version of social VR chat, while others such as Rec Room, Roblox, Linden Lab, and TheWave VR have created their own takes on social VR.

In a blog post, the company said i ran into unforeseen financial difficulty and couldnt afford to keep the virtual lights on anymore. The post said the company tried to raise a new round of funding, but a deal fell through and it ran out of time and money. The company said, Wed love to see this technology, if not the company, live on in some way, and were working on that.

Eric Romo, CEO of AltspaceVR, started the company in his home office in 2013. The company raised $10.3 million in 2015 from Comcast Ventures, Tencent, Dolby Family Ventures, Raine Ventures, Lux Capital, Western Technology Investments, Maven Ventures, Promus Ventures, Streamlined Ventures, and Rothenberg Ventures.

Romo said in an interview with GamesBeat in April that the company was hoping to monetize events that companies paid for, not unlike how Linden Lab monetized corporations in its Second Life virtual world. But Altspace VRs traffic was relatively small, at about 35,000 users a month. Thats a sign of how small the overall base for VR is, and it probably tells you why the company ran out of funds, as that number isnt enough to get investors excited. Mobile and PC-based VR units are expected to grow from 6.4 million globally in 2016 to 20.3 million in 2017, according to SuperData Research.

Its not clear exactly what this means for other VR startups, but everybody knows that growth is slower than expected. Other VR startups such as enterprise-focused Envelop VR have also shut down this year.

Above: Eric Romo, CEO of Altspace VR at SVVR.

Image Credit: Dean Takahashi

Altspace advanced VR as a medium and, while it may have been ahead of its time, it demonstrated the potential of social VR. Everyone working in VR should be grateful for their contributions to the space, said Amitt Mahajan, cofounder of Presence Capital, which invests in AR and VR startups. I think were likely to see a virtual world like Altspace eventually work but itll likely be something that first starts off fairly constrained in what you can do with others and grow from there to a fully fledged social network.

Greg Castle, founder of Anorak Ventures and an early Oculus investor, said he was sad about the Altspace VR news.

There are two distinct strategies I see in social VR, he said in an email. Companies focused on building out the infrastructure (outside in), and those focused on customer experience (inside out). AltSpace and (Linden Labs) Sansar for example have spent a lot of time building out a really robust infrastructure platform and are largely relying on other developers to create fun experiences built atop their platform. Rec Room and Star Trek on the other hand have focused more on providing a compelling, engaging experience off the bat for users which in turn has the potential to build a strong social community. Given the user numbers and slower adoption curve as an investor I prefer the later strategy.

Above: AltspaceVR comedy night.

Image Credit: AltspaceVR

He added, In terms of what it means for venture backed VR companies, I think its probably a reality check in a somewhat frothy market. I think Eric and his team are fantastic and trust theyll find their way.

And Tipatat Chennavasin, cofounder of the Venture Reality Fund, said in an email, When a shutdown happens its hard to understand without knowing all the details. Altspace VR, led by Eric Romo, was a true pioneer and did some ground breaking work in VR and social. Its a shame they werent able to get further funds to continue to innovate, the news also comes right after Within announcing a $40M round, indicating evolving investor dynamics in the sector.

Chennavasin added, For later venture rounds the bar is raised higher and tangible metrics really come into play. A lot of times the main challenge for early innovators is to manage the companys growth in a nascent but potentially explosive market where there are no established investment patterns and the venture investors are still discovering the subtleties of the sector. Altspace has opened many doors of creativity and teased us all with compelling possibilities in social VR. Im afraid their timing wasnt precisely aligned with investor sentiments, especially in later rounds where certain growth parameters are expected, which is hard to do in early stages of the VR market with a small installed base.One last thing I will add is that the team were not just pioneers but also great supporters of the larger VR development community and will be missed. They have definitely learned a lot on their journey and I look forward to seeing what they do next.

Andrew Wilson, CEO of Electronic Arts, also said on Thursday that it may be a couple of years wait for the mass market VR market.

Jason Rubin, the head of studios at Oculus VR, said in an interview last week that he isnt surprised that the big companies like EA and Activision Blizzard havent jumped into VR yet. Smaller companies are moving into VR, and they will stake out the opportunities first. Once that happens, the big companies like EA will likely acquire those that have the lead.

Regarding Wilsons comments, Mahajan said, I dont disagree with him. The consumer VR market is going to take a while to develop still. I think new Daydream phones and Apples (rumored) addition of an OLED screen to the iPhone 8 will help drive adoption of mass market consumer VR. But were at least one phone refresh cycle away (18 to 24 months) from everyone having VR available to them.

Stephanie Llamas, analyst at SuperData Research, said, I think the closure was an example of how good companies suffer from the prematurely inflated expectations for the industry as a whole that many companies had early on. Primarily, investors are now spooked because there was an overvaluation of the market. Now that growth isnt going as fast as theyd expected, they reevaluated their risk and are now undervaluing certain opportunities. AltspaceVR was truly a pioneer in the social VR space. It should not have been discounted, and I honestly think this is a tragedy for the industry.

Bjorn Laurin, vice president of product at Linden Lab, said he was sorry to see the sad outcome for Altspace VR. But he said, We remain bullish on the future of social VR.

Read more from the original source:

What Altspace VR's shutdown says about virtual reality's prospects - VentureBeat

REHOBOTH BEACH, Del. (AP) - Considering hes an owner over at Screams at the Beach in Georgetown, its not all that shocking to hear Brian Turner swoon over the tech inside the virtual reality horror game, Affected.

After all, there are experiences inside the game - a haunted mansion VR experience with an interactive flashlight and three distinctly different trails to an exit - that he couldnt possibly recreate in Georgetown, like the scene where all the furniture on the ground flies up to the ceiling and then falls on the person playing the game. Hes seen people hit the floor in fear.

Turner this summer has quite literally entered a much different world with his new venture. His Beyond Entertainment Enterprises has partnered with Pete and Michelle Townsend of Sports at the Beach to bring the first dedicated virtual reality arcade, Escape Reality, to Delaware in Rehoboth Beach.

More than that, it appears to be the only dedicated virtual reality arcade on the mid-Atlantic coastline outside of New York. Turner, a Sussex County native, handles the operation of it, while the folks at Sports at the Beach handle the marketing, Turner said.

But the producer of many screams around Halloween isnt out to scare anyone here in the new shop located at 27 Rehoboth Ave.

Hes ushering in a new experience with the future of technology. There are games available for all ages and the experiences range from cinematic viewing to first-person shooter games and more. Theres even a bike setup where users put a headset on and can fly a pegasus, race cars, ride horses, tanks or actually cycle. The faster you pedal, the better the game goes.

Escape is open from 11 a.m. to 11 p.m. on weekends and closes at 10 p.m. other days. Turner said business has been booming since the soft opening around Memorial Day Weekend.

Theres nothing like this, Turner said. Its a brand-new concept because virtual reality is so new.

Which makes it not so cheap.

Turner, 36, wouldnt give an exact dollar amount on the startup cost, but did admit each unit costs five figures, and there are six units at Escape Reality. Experiences cost basically $1 per minute.

Escape Reality works with a company called Private Label, which works with game developers to distribute games and experiences to businesses like Turners. There are more than 40 games available at Escape Reality and more on the way, including an escape room experience.

A tough sell

Turner, who says hes always been into video games, was inspired by virtual reality after trying Playstations version of it.

It was a tough sell for me to be convinced because its cutting edge, Turner said. Theres nothing to compare it to. Theres nothing to compare pricing against. Theres nothing to compare anything against, which makes it hard but also makes it exciting.

You cant compare me to stuff on the boardwalk because its all coin-operated and, lets be honest, a lot of that stuff is starting to show its age.

The tech in VR is still relatively new. And many have maybe gotten the wrong idea, having experienced it only on a mobile device, which may have led to a nauseating experience.

At Escape, Turner said not one person has gotten sick, and the only game that makes people feel weird is one called Downward Spiral, a zero gravity experience at a space station that has lost power. There is a floating element.

And while its new and cutting edge, its not hard to picture a not-too-distant future that features mainstream VR arcades.

The 2016 Virtual Reality Industry Report offered a 10-year roadmap for VRs future. The report predicted two million non-Google Cardboard headsets would be in the hands of consumers by the end of 2016 and a staggering 36.9 million by the end of 2020.

Even then, though, the report indicated the hyper growth of the industry was still six-to-eight years away. By the end of 2025, a predicted 135.6 million VR headsets will be in use, with 122 million being mobile. A good portion of others may be in places like Escape Reality.

What does that mean for the traditional arcades? Its a question that doesnt have an exact answer.

Turner says his price point is not much different than that of a traditional arcade. He pointed to a recent trip to an arcade with his son Riley, 11, and some of his friends.

He said it wasnt long before he had spent $100.

You put your money in an arcade game that you dont like, youre stuck until youre dead and youve wasted a dollar, Turner said. If you play a game (at Escape) for 30 seconds and youre like, Ah, its not what I thought it was. You can switch out as many times as you want.

A reasonable price

Josh Mellinger, 32, owner of Makin Whoopie, the whoopie pie shop next door to Escape, said hes been playing at his next door neighbors spot three-four days per week lately.

I think for what it is, basically a dollar a minute, it is a reasonable price, Mellinger said Wednesday afternoon as he watched his daughter Evylyn, 7, play a game called Kitty Cannon, which involved putting cats into a cannon and launching them as far as possible.

Mellinger, of Lancaster County, Pennsylvania, said the previous day he and a friend went to a traditional arcade on the boardwalk and were playing a pirate shooting game. He didnt last long there before he walked back up to Rehoboth Avenue.

This is a waste, he said. Why am I doing this? Im going back to VR. I dont want gum tickets.

But hes in the minority for now.

On Thursday afternoon, while Funland on the boardwalk was humming with customers in the middle of the day, Evylyn Mellinger was the only person using one of the six units at Escape Reality.

The nostalgia factor at traditional arcades like Funland makes it a business that looks far from going by the wayside, especially when they, too, have the capabilities of adding VR.

Thats part of what is our bread and butter and we know that, said Funland personnel manager Chris Darr. Our customers tell us all the time, Dont change it. If we were to take out the fire engines and put in a virtual reality simulator than wed probably have a mutiny on our hands.

We still try and incorporate stuff that works with what we are, but were not going to jump on the bandwagon of something that brand new until we know its tested and something that will really work for our customers.

Darr said Funland belongs to a trade organization, the International Association of Amusement Parks and Attractions, and is keeping a watchful eye on new technologies.

Its not that we arent worried about it, Darr said. When its affordable and when its something we can implement, wed probably look at doing it. Right now, I think people are still trying to figure it out.

Mark down Brian Turner as one of those people.

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Information from: The Daily Times of Salisbury, Md., http://www.delmarvanow.com/

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Delaware virtual reality arcade provides look at the future - Washington Times

Social virtual reality (VR) startup AltspaceVR has run out of funding and is going to shut down its service in early August. AltspaceVR announced the closure late Thursday, inviting its users to a final farewell party in its virtual world on August 3.

An AltspaceVR spokesperson told Variety that the companys staff of about 40 employees had been on furlough this week, and that their last day will be July 31.

The company has run into unforeseen financial difficulty and we cant afford to keep the virtual lights on anymore, the company said in a blog post. This is surprising, disappointing, and frustrating for every one of us who have put our passion and our hopes into AltspaceVR.

AltspaceVR had raised more than $15 million in funding from investors including Comcast Ventures,Tencent, Dolby Family Ventures and others. The company was looking to raise additional capital, but a new funding round didnt come together as planned. Weve been out fundraising but have run out of time and money, it said in a statement.

AltspaceVR had been building a social VR application that allowed users to meet up in virtual spaces and chat with each other as well as attend virtual events together. Some notable VR events held by the company included comedy nights with Reggie Watts, as well as a recent VR appearance of Bill Nye.

However, AltspaceVR had been facing increasing competition, including from Facebook, which introduced its own social VR app Spaces earlier this year. Whats more, the real-time nature of social VR represented a bit of a chicken-and-egg problem for AltspaceVR, forcing it to rely on the growth of a medium that is still in its infancy. In the end, AltspaceVR only had 35,000 users per month.

The companys leadership is now looking at all options to see how to continue the work done at AltspaceVR, according to its spokesperson. This presumably includes selling its technology and other assets to anyone interested in getting a head-start in social VR.

See more here:

Comcast-Backed Virtual Reality Startup AltspaceVR Shuts Down - Variety