JCR Hot Take: VR + Unfulfilled Expectations

Author's Note - Hi Everyone! Apologies for the hiatus, among finishing graduate school, finding a job and attempting to catch up on my backlog time has seemed to escape me. Regardless, I'm happy to be back up and running and working on new posts for 2017. I'm happy to kick things off with a JCR Hot Take, basically, my unfiltered opinion on a certain subject. My hope is to bring a few of these to the blog to incur discussion or interest outside of my case studies. If you have any interest in contributing to the blog please let me know, I'm always happy to add in other entries. Enjoy.

(Content or product? Credit: www.recode.com)

Over the past year, virtual reality has been continually hyped as the revolutionary product that would turn gaming and many other industries upside down. After reading through approximately 20 final exams on the subject as a Teaching Assistant for the core marketing course at school, I figured it was my turn to weigh in on the subject. Although receiving much hype and making promises, I believe that virtual reality at this point in time has landed with a resounding thud. I want to emphasize this point in time because I believe there is a lot of potential for the product, but currently it lacks intrigue or a distinct path forward.

The poster child for the product has to be the Oculus Rift or the Samsung Gear VR. Both are exceptionally different. Oculus Rift Kickstarter began back in 2012, it exceeded its expectations, and the general public waited to see how it would change the world. Sales were strong from the outset, but have since dropped off. Samsung was able to push its product through advertising and a lower price point to currently sit as the leader in VR sales. However, Samsung’s VR solution is little more than mobile technology, and it lacks the richness and depth that the Oculus has. Oculus meanwhile needs to be connected to an incredibly strong desktop computer, and has a relatively small cord connecting it to the unit. Sony has also entered the fray with a unit that connects to its PlayStation 4 in an attempt to leverage its over 50 million user base. These are just a few of the peripherals available. Clearly there is significant interest in the technology; however, there are numerous issues with the current state of the platforms.

                                     

(PlayStation VR – My guess for the likely sustainable system. Credit: Sony)

Issue 1 – The Absence of a Killer App – In my opinion, the platform lacks a true killer app, especially for consumers. Although there are definitely opportunities in the Business 2 Business segment, such as in defense, travel, or medical fields, there is nothing in the consumer field that makes VR a must have item. Yes, there have been entertaining games, movies, experiences, and more, but nothing that the platform offers makes you say I need to buy this item. Instead it’s a neat concept that is fun, but not worth the investment, especially in a gaming sense. There is currently nothing on the platform that made me think I should give up pursuing my PlayStation 4 Pro for a VR Headset. While I know that there is a lot of potential for the platform (Facebook did buy Oculus for that reason I think), I do know what it is at this point. Only time will tell whether or not it will enthrall gamers enough to make the move over, but given the fierce competition between Sony and Microsoft and a renewed fervor for Nintendo from the recent mobile work and the inception of the Switch, I do not believe gamers are going to flock away from current console mainstays.

Issue 2 – Price of Entry – Without question, one of the biggest roadblocks with consumers is the steep price point. It’s for that exact reason Samsung has been able to develop a market with its Gear VR system. For the higher end models such as Oculus or HTC’s Vive, the base platform costs at least $600. If that weren’t enough, there’s still more to deal with. These headsets are so far advanced that they need extremely strong computers to function, the average computer that can handle a VR headset goes for around $800. Therefore, before we even begin purchasing software there is nearly $1500 to obtain the product in the fullest, which is unquestionably a hard sell. I may be a hardcore gamer, but I do not have that kind of cash around, not to mention I prefer gaming on a console over a PC.

Issue 3 – Fragmentation – Finally, there are currently a lot of different platforms and different headsets, so much so, that there is not one singular one to rally around. If that sounds confusing, think of it this way: VR is currently like Android phones, the problem is that VR systems do not use the same operating platform and there is no iPhone. I mention the iPhone because as much as it pains me to say it as an Android user, the iPhone is the benchmark smartphone others try to measure up to. It has a huge install base and a platform in iOS that can be used across multiple peripherals (desktop, iPad, etc.). VR currently does not have that market leader. While I do believe something will inevitably have to break through, I have no idea how and where that will come from. Perhaps in the Samsung Gear VR due to the market leading status, but Gear VR versus PlayStation VR versus Oculus are 3 very different products with different segments and goals. That leaves us with an extremely muddy situation, one that will not be figured out in my estimation in the near future.

                                     

         (Is it really worth it? Credit: Geekologie.com)

In conclusion, VR represents a lot of potential, but that’s all it is currently. My fear for these platforms is that due to the relatively slow start that they will begin to fade quickly or take a backseat to tried and true games and television. Already I’ve read on Twitter about how individuals bought the product and have no idea what to do with it months later, that’s a terrible sign. I actually asked Blake Harris (the author of Console Wars) about whether or not VR would succeed or just become the next 3D TV. He seemed put off by my question (to be fair, he’s currently writing a book on Virtual Reality) which I felt bad about, but our conversation was back in March of 2016. Sitting now in January 2017 I feel even more emphatic that VR has been a massive disappointment. Perhaps one of the products that has not been released yet will be able to accomplish a breakthrough to the mainstream in the vein of what the Wii did for motion control. At this point though, I’m yet to be truly impressed.