Regular readers of this column will already know about the vast business potential of virtual reality (VR) and the emergence of disruptive use cases within the health care, real estate, education, and tourism sectors, to name just a few. But there’s no escaping the fact that — for the time being — VR largely remains a consumer proposition.
And as I’m sure many of the parents among you can testify, that proposition can be a dauntingly expensive one. So what are the various options for consumers looking to venture into the realms of virtual reality? And how is the market responding to the evolving demands of consumers looking to immerse themselves even deeper into that world?
There are currently two types of VR headsets available on the market — the mobile VR option favoured by Samsung and Google, and the tethered option being pushed by the likes of Facebook, HTC, and Sony. Around half a million VR headsets were sold in the Middle East and Africa last year, with the mobile variety accounting for an overwhelming majority of those sales.
Each of the form factors comes with its own unique advantages — and, of course, a series of inevitable drawbacks. For the cost-conscious consumer, the mobile VR option would seem to be the best bet, with the cheapest tethered device — Sony’s PSVR — tipping the scales at an eye-watering $400 just for the headset and cables. And that’s before factoring in the cost of the obligatory PS4 console that it must connect to.
Facebook’s Oculus Rift weighs in at around $600, while the HTC Vive costs upwards of $800. Both of these options must be tethered to extremely powerful PCs that will set you back a minimum of $500, while a myriad of optional extras such as motion controllers rack the total up further still. So it’s fair to say that the tethered VR option isn’t for the faint hearted!
The fact that users are not able to roam around freely is another obvious drawback for the tethered option. Mobile VR headsets such as Samsung’s Gear VR and Google’s Daydream View offer a distinct advantage in this regard, as well as from a cost point of view, but their reliance on smartphones for computing power means that the graphics, battery life, and overall immersion they provide don’t match up to the experience offered by tethered headsets.
If only there was some middle ground, I hear you cry. And, fortunately, there is; or at least there will be once the ‘Santa Cruz’ concept unveiled by Mark Zuckerberg in the final quarter of last year begins to hit the shelves. Much more than simply a wireless version of the Rift, the new prototype sits between the existing mobile and tethered offerings, and is poised to revolutionise the consumer VR space.
What sets the Santa Cruz apart from the other major players discussed above is that it has positional tracking and computing hardware built into the back of the headset. So it’s not reliant on a humble smartphone or an exorbitantly expensive PC in order to operate — it is truly the stand-alone VR headset that the market has been crying out for.
Zuckerberg has repeatedly said he wants to make VR the next major computing platform, and while the Santa Cruz might not guarantee success for Oculus, its arrival will certainly signal a shift in the market’s future direction.
Consumers want to immerse themselves in the powerful visuals offered by tethered headsets, while simultaneously enjoying the mobility afforded by their mobile counterparts. And once the market has a competitively priced offering that couples both these advantages into one device, I expect the consumer demand to follow.
To that end, the transition to stand-alone headsets represents a natural progression for the VR industry. As is the case with most new hardware, the initial iterations can often be rather unwieldy and unconvincing from practicality point of view until someone finally hits on a winning formula. You only have to look at the way that mobile phone offerings have evolved over the years to see evidence of that.
Could it be that we are now seeing a similar transition within the VR space? A fully built-in headset would appear to be the logical way forward if the technology is to become more mainstream. But form factor is only one variable standing in the way of a successful future for VR. Much more pressing is the need to provide compelling content that can keep consumers interested once the initial novelty factor has worn off.
Whatever happens next, VR still has a long way to go before it reaches the heady heights envisioned by Zuckerberg. But the long-awaited introduction of stand-alone headsets will certainly represent a significant step in the quest to transform virtual reality into a more viable proposition for both consumers and businesses alike.
The columnist is group vice president and regional managing director for the Middle East, Africa and Turkey at global ICT market intelligence and advisory firm International Data Corporation (IDC). He can be contacted via Twitter @JyotiIDC
