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      Virtual reality poised for boom

      1
      2015-11-09 09:26Global Times Editor: Li Yan

      Insiders say content is top priority in industry's growth

      Leading tech firms are jostling to enter the field of virtual reality (VR), a revolutionary technology that requires advanced computer hardware as well as software. Many companies, including Samsung Group and Google Inc, have taken steps to explore the field.

      Developers and engineers noted during a tech conference held in Beijing on Monday that even though not all VR headsets are consumer-ready yet and some obstacles still need to be overcome, the technology is evolving quickly and may be close to readiness for mass consumption.

      Phil Chen, chief content officer at HTC Corp, told the Global Times Monday that more time is still needed for VR devices to hit the market, as developers are still encountering issues with lens sensors and refreshment rates. However, companies have to venture into VR devices "as it's completely certain that this is the next source of computer profit," Chen said.

      HTC has teamed up with US online video game developer Valve to launch its VR headset called Vive, according to its website. The device will soon be officially released, Chen noted.

      VR has the potential to become one of the most disruptive technologies in a decade, according to a report published by UK-based market consultancy firm CCS Insight in June. Analysts from CCS Insight predicted that more than 12 million VR headsets would be sold in 2017.

      The report highlighted the fact that VR has the most potential with consumers in the near future, with several tech giants making huge investments, particularly Facebook Inc's $2 billion acquisition of Oculus VR.

      Meanwhile, other firms are pursuing projects in the field, including Google, Sony Corp and HTC. Samsung is also working closely with Oculus VR, which has produced virtual reality devices for use with its smartphone, according to the report.

      More than glasses

      In terms of demographics, VR devices developers are mainly focused on gamers for the moment, and China's huge gaming crowd makes it a potentially lucrative market, Chen told the Global Times.

      However, the majority of Chinese consumers still know little about VR technology, Chen Xu, an analyst at Beijing-based market research firm Analysys International, told the Global Times Tuesday.

      "Hardware produced in China is much more similar to the gadget made by Baofeng Mojing Technology Co, which is more like a pair of 3D glasses," Chen said, noting that high-end VR devices are more complex.

      A 28-year-old woman surnamed Zhang living in Beijing told the Global Times Tuesday that she experienced in 2014 a VR device produced by Qihoo 360 Technology Co. "Only my head could move and the pictures were not very clear, which made me feel that I had not fully entered the virtual world," she said.

      Liu Dingding, an analyst from Beijing-based Internet intelligence agency Sootoo, noted that he was shocked after trying the Oculus VR headset for the first time in July. "It seemed that the floor could rise and fall after I put on the device. When I had to jump off an illusory bridge in a demo, I couldn't because it is so real, which gave me an out-of-body experience," Liu said in a note sent to the Global Times Tuesday.

      Still, tech firms are trying to make VR technology even more compelling, said Dillon Seo, who previously led Oculus' operations in South Korea. "We have to figure out other ways to make virtual reality more convincing, not just visually or in audio, but also in terms of feelings, smell and taste," Seo noted.

      He noted that the first step would be how to interact with the virtual world, and developers are now focusing more on the controllers, with the aim of letting players interact with objects in the virtual world.

      Toward mass consumption

      With competition in the VR industry heating up, companies have to find a selling point for their devices as their first step, said Chen, the analyst from Analysys International.

      Chen's view was also echoed by the CCS Insight's report.

      "It's not just about expensive high-end devices such as the Oculus Rift. Consumers can dip their toes in the water with an inexpensive cardboard holder for a compatible smartphone," Ben Wood, the chief of research team at CCS Insight, was quoted as saying in the report.

      The popularization of VR technology will make gaming the first industry to reap the benefits, as this sector has always pushed forward graphic technology, Seo predicted.

      In order to earn a greater market share, working on content is as important as developing hardware, as consumers will finally be attracted to what they see and experience in the virtual world, VR developers noted.

      "It will be consumer-ready early next year, and we see a number of startups are creating innovative content," Seo said, noting that this content could eventually become a driving force for the VR industry. This explains why Oculus has set aside $10 million to support startup communities to come up with new ideas in terms of creating content for VR.

      Phil Chen noted that tech firms are likely to build up a platform instead of just release a headset. "It's like Xbox. People will buy it because of the video games on it," she said.

      Also, high-end VR devices may become cheaper than expected. For example, Oculus and Samsung jointly unveiled a new version of the Gear VR headset for $99, which is half the price of the previous "Innovator Edition," according to media reports.

      The device will work with all of Samsung's 2015 line of smartphones such as Galaxy Note 5 and Edge Plus.

      "Making VR devices more affordable means letting entry-level customers experience them first," according to Chen.

        

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