Virtual reality will be worth $861 million at the end of 2016
According to digital goods measurement company, Superdata Research, mobile virtual reality is on track to achieve $861 million in revenue this year. Demonstrating significant growth for a market that is just taking off thanks, to the Samsung’s Gear VR and Google Cardboard – Devices that enable smartphones to run games and applications in virtual reality.
Although Samsung and Google won’t get of bed for less than $ 1 billion, the two companies treat this as a chance to be seen as leaders and early adopters.
The investment bank Goldman Sachs predicts that, if one also includes the augmented reality industry, revenues associated with virtual reality will increase to $110 billion by 2020. With that kind of money floating around, Google and Samsung both see an opportunity to monopolize how you download VR applications. The Google Play Store already has dozens of VR applications and ensuring that this library increases is one of the main ways to make sure that the company makes a profit.
Therefore, Google and Samsung may seek to double their efforts to take advantage of expenditures related to mobile VR, to control the distribution of software.
“Samsung hopes to increase its market share by offering bundles such as a free Gear VR headset with each preorder of its smartphone Galaxy S7,”
said Joost Van Dreunen, CEO of Superdata.
“Google, which already dominates the Mobile VR platform, Cardboard with her, wants to rise in the ranks with the rumor that they are working on a headset that would compete with the Gear VR.”
The supposed VR system from Google will be a mix between the Gear VR, the Oculus Rift, and the augmented reality headset, HoloLens, from Microsoft. Google has stated that they built their headset specifically for virtual reality, so the device will not need a smartphone like the Gear VR. And will also come as a standalone device, so no need to connect to a PC, similar to the HoloLens.
Such a device may be expensive, but it may have a larger battery capacity and more sensors than the Gear VR, not to mention that it might not need $1200 PC to make it work.
“With the Oculus Rift, which costs $600 and the HTC Vive, which costs $800 [plus the cost of a PC], the use of a mobile will be the preferred method for consumers to enjoy reality Virtual in the near future,” said van Dreunen.
Goldman Sachs VR & AR Ecosystem