Technology, content and business model risk all are possible gating factors but they are unlikely to prevent the location-based virtual reality entertainment (LBVRE) sector growing to reach $1.2 billion by 2021, says Greenlight Insights.
The research — taking the views of the likes of IMAX, Dave & Busters, Six Flags, The Void, and Survios — found that while the market is expected to be a billion dollar industry within the next five years, companies preparing to participate face technology restraints such as the fact that LBVRE venue operators find untethered headsets a must, adding pressure to HMD giants to cut the cord. This also comes as firms such as HTC and Starbreeze Studios, are developing hardware that can accommodate multisystem, multiplayer functions.
The research also found that currently most LBVRE venues offer experiences designed for in-home use and that more content needs to be designed specifically for LBVRE, including multiplayer, interactive experiences, which will greatly increase the opportunity for repeat business. However, the industry also currently suffers from pricing issues. The current dominant pricing method charges attendees for time slots, yet LBVRE venue operators must often cut pricing by as much as 50% during non-peak hours.
“Major industry players will find these challenges easier to overcome as they are well positioned to incorporate new technologies as they emerge, fund content development, and experiment with different business models,” said Greenlight Insights' Colin McMahon. “Newcomers must be deliberate in how they address these considerations to maximise their chances for success.”