Home Gaming Rocky start lowers VR industry forecast for 2016

Rocky start lowers VR industry forecast for 2016

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15

HTC Vive

I’m excited about Virtual Reality – it’s some cool technology that might just change the way we consume media. I’m not just talking about games, either. While I loved some gaming experiences, imagine being able to attend your favorite concert in VR, or getting to visit all kinds of places around the world without needing to pay a small fortune for flights and accommodation? VR might be the future, but revised projections predict that the future might not come as soon as originally thought.

According to SuperData (who sent me a rather interesting email), some issues with production are going to impact market penetration of VR devices in 2016.

There is a significant gap in the ability to fulfill consumer demand due to parts shortages and unforeseen popularity, according to the report. It outlines that more than 13M Americans say they intend to purchase a VR headset this year, but only 7.2M are estimated to ship.

However, VR has even bigger problems. Stephanie Llamas, director of research and head of VR/AR strategy at SuperData explains:

The general public are mostly unaware of Virtual Reality with 50% of Americans showing no interest in or knowledge of VR. Broad consumer adoption relies on building awareness, but today nearly 80% of consumers only occasionally or never hear about VR.

That said, the numbers are still quite staggering. Sales in 2016 are expected to hit $2.9 Billion in combined hardware and software, with that number growing at an incredible rate in the coming years. Most interestingly, gamers are expected to be the key to initial consumer adoption, accounting for 78% of sales in 2016, but by 2020 gaming is expected to fall to 28% of overall spend. I suppose that’s because by then all the gamers will already have their headsets and the focus will have to shift to other kinds of consumers who will use VR to experience other realities that they could never otherwise enjoy.

Finally, according to the research, the most well-known VR headset is the PlayStation VR, but even that sits at only 28% awareness. With the Oculus Rift, Samsung Gear VR and HTC Vive facing such low awareness, the marketing and PR teams have quite a task ahead of them.

I am keen to get a VR headset eventually, but I’ll probably wait for the second generation. Or for the prices to come down. Or both. Are you going to be an early adopter, or are you waiting to see if it takes off first?

Last Updated: April 20, 2016

15 Comments

  1. Greylingad[CNFRMD]

    April 20, 2016 at 19:15

    Currently there is a indiegogo campaign running to have the Hendrix experience brought to VR, I know I’ve been cynical about VR, but hell, I’d get into it if that happens!!

    Reply

  2. Alien Emperor Trevor

    April 20, 2016 at 20:21

    I don’t want to use it at all. Next step is human battery.

    Reply

  3. Captain JJ vs ..............

    April 21, 2016 at 07:37

    Yea, sounds like they missed a few variables in calculating their forecasts for one.
    Although VR does interest me, for specific gaming experiences, it’s not something I have to have. It’s something I’d buy if it were cheaper, but it’s an extra little pleasure not a necessity.

    Reply

  4. Hammersteyn_hates_Raid0

    April 21, 2016 at 07:39

    VR certain to wait for the price to come down

    Reply

    • Captain JJ vs ..............

      April 21, 2016 at 07:39

      I see what you did there.

      Reply

      • Hammersteyn_hates_Raid0

        April 21, 2016 at 07:44

        And that’s without a single drop of coffee

        Reply

        • Captain JJ vs ..............

          April 21, 2016 at 07:44

          *bows*

          Reply

        • Ir0nseraph

          April 21, 2016 at 07:55

          Coffee yes waiting for my first one the the day too, did you sort out your issue of last night ?

          Reply

          • Hammersteyn_hates_Raid0

            April 21, 2016 at 08:02

            Yup waters running, some tool messed around with the water mains

    • Ir0nseraph

      April 21, 2016 at 07:56

      LoL
      yeah price needs to drop I will get it when VR is in it’s Next-gen stage.

      Reply

    • Greylingad[CNFRMD]

      April 21, 2016 at 08:30

      Viss ze praais soarink laik an eackle ant ze foarcast lookingk as grim as it is, zat maait take a little bit longker zan expected…

      Reply

      • Hammersteyn_hates_Raid0

        April 21, 2016 at 08:38

        hahahaha

        Reply

  5. Ghost In The Rift

    April 27, 2016 at 01:15

    Yeah price drop and better hardware support as to a 20 grand gaming rig,highly unlikely but looks like Neo and Morpheus is the way to go regarding affordability,compatibility and support.

    Reply

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