The Virtual Reality Arms Race – Where Do We Stand?
In case you hadn’t heard, the first virtual reality goggles are already on the market, thanks to the Samsung Gear VR and Google Cardboard. For us, mobile app developers in sunny San Francisco, this is a big deal. Both Cardboard and the Gear VR use your mobile phones as both hardware and software to power the VR experience. We expect mobile’s role in VR to only increase so we thought we would provide a handy guide to the VR space. Who’s in, who’s out, and where do we stand today?
Apple
Apple is in. They reportedly poached one of the leading academics in VR out of Virginia Tech, Doug Bowman, to work with a growing team of VR and augmented reality experts. We have a strong feeling they are not there to work on the Apple Watch. Not only would Apple be in a great position to create an iPhone-powered VR competitor to the Gear VR which relies on Samsung Galaxy devices, Apple could also create a living room device compatible with Apple TV. In both cases, the incredible App Store ecosystem could become a huge driver for VR sooner rather than later.
They already have a VR team in place and are expanding rapidly. Plus, they have the biggest video provider on the planet, YouTube, which could easily explode into the world’s biggest provider of streaming VR experiences. They’ve already shipped 5 million Cardboard units and users have binged on 350,000 hours of VR footage from, you guessed it, YouTube. While Google has been quiet on future plans, you can bet they have new hardware in the works, possibly a phone optimized specifically for VR. As it stands, phones were built to be phones, and VR is simply an accessory. With a new Nexus device built with VR in mind, Google could change all that — which could be the first major design shift in smartphones since the iPhone clobbered the Motorola Razr a decade ago.
The Kickstarter community that funded Oculus Rift was devastated when Facebook acquired the VR startup more than three years ago. That stance has softened now that Facebook has agreed to give every Kickstarter supporter a free retail unit of the Oculus Rift, slated for release later this year. While the Oculus store powers many of the VR offerings for the Samsung Gear VR, Facebook is not positioning Oculus as a mobile VR solution on its own, at least not yet. And while Oculus may be the early leader in the VR space in terms of brand recognition, hardware is only as good as software — which gives a big edge to major video game makers like Sony and Valve and, with the Appstore and Android Marketplace, Apple and Google. Oh, and you’ll need to buy an Oculus-ready PC which will set you back at least $1,000. Talk about barrier of entry.
Samsung
The first-to-market Gear VR is a dandy accessory for Galaxy device owners, but it only taps the potential of VR — something early adopters are sadly accustomed to. We don’t know much about Samsung’s future plans, other than a 360-degree virtual reality camera expected to be unveiled at the Mobile World Congress later this month. That’s all fine and dandy, but consumers want games and immersive experiences above all else. Samsung’s position in the market is the most tenuous as it relies on Oculus for software and the Gear VR is a $99 piece of plastic that holds a phone in front of your face. There are too many players here with stronger value propositions than Samsung, at least until they develop their own killer app.
Sony
Sony is all in. They’ve moved their PlayStation unit stateside from Japan, presumably to focus on the North American market, which is considerably larger than Japan’s. The PlayStation 4 is already dominating the next-gen console race, with sales nearly twice that of Microsoft’s Xbox One. Plus, they’ve made considerable inroads with cloud gaming, and they have extensive mobile experience, with their phones and the PSP mobile gaming system. Last but certainly not least, the PlayStation 4 features the best console games on the market, and gamers are probably the most engaged audience for VR right now. If you are one of the 36 million PS4 owners, buying the Sony VR rig will be a no-brainer. Plus, a PS4 costs a heck of a lot less than an Oculus ready PC.
Microsoft
They are sort of in. The HoloLens will offer an augmented reality experience, which looks to us like a gimmicky second screen. You can check out their vision of the future for an NFL game here. Keep in mind this is not even an actual product but more likely an attempt to cash in on the upcoming Super Bowl and steal some thunder from the actual VR players in the space. The problem is no one cares about a second screen experience. Who cares about seeing stats on your coffee table? People would much rather be on the field thanks to a 360-degree VR camera. Like Windows Vista, Internet Explorer, and Kinect, this has major bust potential for Microsoft.
Nintendo
Let’s not forget that Nintendo was one of the early pioneers for VR. Talk about a product ahead of its time. Nintendo will have another console on the way soon. Remember the Wii was a monster hit, but no one bought any games since Wii Sports was already so much fun. The Wii U has some great titles, but is considered a huge flop against the 360 and PS3 — and we’re already on to the Xbox One and PS4. Nintendo is reportedly looking into virtual reality, but it better do so fast. They’ve proven they can innovate, and they’ll have to do it again to stay relevant.
Valve and HTC
Don’t ever bet against Valve. The makers of the Portal and Half Life franchises make some of the best games on the planet. They have Steam, the premiere digital distributor of both independent and big-budget games. They have Steam Machines, console-style PCs meant to be used in the living room. They’ve been studying wearable gaming technology for years. In short, they have been gearing up for VR. The partnership with HTC to produce the Vive could be the piece that brings everything together. Preorders start on February 29. Watch for Sony and Valve to battle it out for early VR supremacy. Grab the gamers, and the world will follow.
The X Factor
If mobile phones are powering early virtual reality, and viewers can be made out of cardboard of all things, look for a ton of third-party startups to jump in here. Prepare to be pleasantly surprised.
If you are still curious about virtual reality, please contact Appstem to learn more.
