Eight Must-haves Before Embarking On VR Games
"While several high-end cans were released annually that may bring virtual-reality experiences to your living room, adoption of this technology remains in its earliest days for a bunch of reasons--it is still bulky, expensive, and there is not all that much to do as soon as you've got it on your face. More than two million headsets were sent globally in 2016, according to a quote from market researcher Canalys, but this figure pales in comparison to the popularity of, say, video game consoles (sales of the top one, Sony's PS4, topped six million throughout the 2016 holiday season alone). Consumer virtual reality will likely catch on as prices come down and cans improve. In the meantime, however, a variety of businesses are betting that customers may be pleased to pay a much smaller amount to try the technology with their buddies at, say, an arcade, theme park, or even bowling alley"
It is tempting to dive into this trap, but in the operator's standpoint VR is a terrible deal. Other than purchasing a brand new vehicle and driving it a time, I can not think about a way you could eliminate money quicker between what you pay and what you'll be able to get down the street.
Another limitation for operators is that while you may have the ability to provide a space for VR individuals to roam around in today, as fresh VR technology is introduced, we are likely to find the point expanded from 100 square feet to the entire world. Instead of viewing just the games in your headset, you will realize the real world with game play overlayed. Since the technology allows more real world areas to be explored, it's going to earn a cramped arcade seem pretty feeble in comparison.
kid vr is heading for mass market acceptance, however it is demand is not being driven by gamers who want to pay big buck to play with video games, but like the BETAMAX that came before it, by individuals who want to watch pornography in their homes.
Even if an operator can make just a bit of money to the upcoming few years, after VR achieves critical mass, it is going to crush whatever earnings stream that operators are dreaming of. Don't believe me? Just check out what is happening in China.
This past year, an eye popping 35,000 virtual reality arcades opened up in China. A year later 22,000 of these have closed.
This is an unbelievable failure rate over this brief time period and one that should serve as a sharp warning to anyone considering investing in the VR games. Maybe Dave and Busters can afford to take losses over the games longer than Chinese startup arcades, however I doubt most North American operators will fare much better using the tech in their match rooms and will only wind up in debt in the end of the day.
The issue basically boils down to customers not being prepared to pay a premium for the encounter. Tech In Asia, clarifies the problem perfectly in their own article, on that the Chinese VR boom and bust.
"Enterprising store owners leaping into VR are finding it impossible to bill fees comparable to cinemas or bowling alleys for a VR experience. One VR arcade proprietor told iHeima he saw eager queues when charging US$1.50 to get a 30-minute session, but everyone vanished as it climbed to US$5. By that sort of revenue it is impossible to cover the lease."
Even if the match was sold out all day, at $1.50 per half hour they are only earning $30 a day.
The real world data streaming in from China should function as a canary in the quarter mines of North America. Operators who invest considerable amounts of money on fancy VR setups will soon find their little VR rooms being replaced by the entire world as a stage. Since the installations get more expensive, smaller and more mobile, the digital arcades will seem more expensive, bulky and limited.
