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  1. #1

    Profitability for Developers of VR

    One of the main issues developers are seeing with creating content for VR is the lack of profitability. There simply is not enough of a consumer base yet for developers to make enough money to offset their costs creating VR games and apps.

    There was a good article on Venturebeat about this:
    http://venturebeat.com/2016/12/09/vr...economics/amp/

    It's kinda like the Chicken or the Egg scenario. What comes first, the profit or the big time developers? I can't see profit coming first, so it will be up to several large developers to take losses perhaps for a couple years before they see profits. It's up to companies like Facebook, HTC and Sony to invest into the development of content, realizing it will help them sell headsets. At the same time though, companies can only take losses for so long before they are run dry.

    So when do you think profitability in general will come to the VR space?

  2. #2
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    When VR becomes cheaper. I have a couple of friends who are interested but think the Vive costs too much. I'd love to do some multiplayer with them though.
    Medical Physics student, Programmer, VR Enthusiast

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  3. #3
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    Well, there are already some games which are profitable. The trick is to be one of those game developers, at least until the market gets larger. We should see a 150-200% increase in the number of headsets in the hands of consumers by the end of 2017. That should be the tipping point in my opinion. I'm predicting some big name experiences, films and games by the end of 2017 as well.

  4. #4
    Quote Originally Posted by RJ88 View Post
    We should see a 150-200% increase in the number of headsets in the hands of consumers by the end of 2017. That should be the tipping point in my opinion.
    How do you think that's going to happen RJ88? Prices dropping that much? people just giving in and dropping cash on the headsets?

  5. #5
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    I think RJ88 is right, and some of the predictions are in line with that.


    LaughingReaper - we should see some price drops, a greater number of headsets on the second market, an increase the HMD space in general, as well as more compelling reasons to purchase a device. Particularly the lower end devices are where there should be growth. Once all Android devices can run google's VR, or at least say Nexus 6 forward we'll see a lot more of a paying market.


    I think once we have a bigger install base we'll see some porting done by someone like an EA or Ubi, that will do well because there's so little big name content, and will turn into more games being invested in, and I'd say by 2019 it should be lively. We might not have a world first, VR only AAA, but you'll find that "Call of Duty 38: Stars of Battlefield 1 Titan Ancients" will have a solid VR mode for the pvp.

  6. #6
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    Right now many developers are in a wait and see phase. They need to see where the market goes, what types of games and apps people are going for, and what the easiest way to profit will be. I think in a year or so if VR is still going strong we will see a huge influx of new developers jump on board, including some big name devs we've all be waiting to see.

  7. #7
    Junior Member Rakku's Avatar
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    The main headsets like Vive and Rift are simply too expensive to become mainstream consumer products. You cannot ask your average consumer to spend such money. PlaystationVr is certainly in a better price range, and they deserve to do well from it.

    Graeme

  8. #8
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    Quote Originally Posted by Rakku View Post
    The main headsets like Vive and Rift are simply too expensive to become mainstream consumer products. You cannot ask your average consumer to spend such money. PlaystationVr is certainly in a better price range, and they deserve to do well from it.

    Graeme
    There is always a certain portion of the market willing to pay, and that will vary depending on how interesting or useful it is. Most of my friends have at some point spent at least $1000 on a tv. A lot of us will have a phone that is rarely ever more than 2yrs old, and except for that the cost is hidden sometimes, it means we are replacing a $600-900 piece of hardware every couple of years. Some people spends 1000s on golf clubs and golf memberships, and the list goes on. None of these are really niche either.

    That said, lower price means more buyers of course. I think $500 is more than reasonable for a HMD with controllers, tracking, software etc, as long as it has the latest and best possible tech for the time. Even at around$700, not too bad. The bigger issue is that you need a beefy computer, but those are already coming down in price a lot. PSVR is great in that if you own a PS4, you don't have to worry about that, but then you are stuck with pretty inferior hardware, and it is only really a big help to people that already own one.
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