While those of us who are adults now primarily remember video games as joystick- or button-controlled pastimes, children growing up in the immediate future will most likely have a completely different experience to remember as adults, using motion-control games such as the Wii and Kinect, or perhaps even more likely, using the position of their eyes and hands to control what happens. Given the intense amount of resources being focused upon augmented and virtual reality at the moment, gaming in alternate realities looks ready to explode into the mass market.
In the first two months of the year, augmented reality (AR) and virtual reality (VR) companies have received more funding than in all of last year, to the tune of over one billion dollars, sparking an explosion of speculation about which companies will develop the “next big thing.”
Goldman Sachs recently published a report saying that AR and VR could potentially become an $80 billion market by 2025, which is big – roughly the size of the desktop PC market today. The reasoning behind this growth is that AR and VR will not only be used for gaming, but in a wide variety of practical applications throughout sectors such as healthcare, real estate, and education.
However, the most commercially anticipated VR and AR area is gaming. Given the recent launches of both the Oculus Rift and HTC Vive (and the PlayStation VR later this year), the VR space is going to quickly become a tech battleground. In fact, there will also be battles amongst the companies streaming content to VR such as Netflix, Hulu, and Amazon. Stay tuned.