When Money Isn’t a Good Thing: The Risks of Investing in VR | Stephanie Llamas

The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.

WHEN MONEY ISN’T A GOOD THING THE RISKS OF INVESTING IN VR Casual Connect Europe 2017


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STEPHANIE LLAMAS VP of Research and Strategy Head of VR/AR Strategy


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The leading provider of market intelligence for digital games, eSports, gaming video platforms and Virtual/Augment reality

• 78M unique users • $3.2B of transaction data • 42 of the top 50 game publishers worldwide • Panel of 78K consumers


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The VR Data Network is the first industry collaboration to quantify and validate the global VR market

• Partners like headset makers, developers, platforms • Partners get ongoing insights and data to improve strategy • Reviewing applications now

Learn more: www.superdataresearch.com/superdata-vr-data-network/

Money is the seed of money.

-Jean-Jacques Rousseau


s: 5


s:


2016 2017 2018 2019 2020

$37.7B

$23.4B

$13.6B

$4.9B$1.8B


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Virtual Reality will reach $38B by 2020Worldwide Virtual Reality revenue

+$35

B

21x

2012 2013 2014 2015 2016

$2.1B

$0.9B$0.8B

$0.3B$0.1B

$2.0B


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Virtual Reality investment was more in 2016 alone than 2012-2015 combinedWorldwide Virtual Reality investment (excluding R&D and Facebook’s acquisi.on of Oculus)

2012 2013 2014 2015 2016

$2.1B

$0.9B$0.8B

$0.3B$0.1B


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Virtual Reality investment was more in 2016 alone than 2012-2015 combinedWorldwide Virtual Reality investment (excluding R&D and Facebook’s acquisi.on of Oculus)

$2.0B


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VR revenues since 2012 are worth only 46% of investment dollarsVR investment vs. revenue (excluding R&D and Facebook’s acquisi.on of Oculus)

$0.1B

$2B$1.8B

$2.1B

2012-2015 2016InvestmentInvestment Revenue Revenue

$314.4M

$556.2M

$108.2M

$902.1M


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VR revenues since 2016 are worth only 46% of investment dollarsVR so^ware investment


$314.4M

$556.2M

$137.6M$72.3M

$902.1M


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$99.9M

$324.8M

Games

$314.4M

$556.2M

$137.6M$72.3M

$902.1M


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$99.9M

$324.8M

36% 92% 13% 44%Games

Technology is anything that wasn’t

around when you were born.

-Alan Kay


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25%

50%

75%

100%

1960 1970 1980 1990 2000 2010 2020

Color TV

VCRPC

Internet

Cell phone

MAJOR U.S. TECHNOLOGY ADOPTION RATES BY HOUSEHOLD

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Almost 220M consumers will use VR in 2020Worldwide Virtual Reality monthly unique users (MUU)

2016 2017 2018 2019 2020

218.9M

143.8M

89.3M86.5M90.7M

+128

M

2.4x

25%

50%

75%

100%

1960 1970 1980 1990 2000 2010 2020

MAJOR U.S. TECHNOLOGY ADOPTION RATES BY HOUSEHOLD

VR

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25%

50%

75%

100%

1960 1970 1980 1990 2000 2010 2020E

VR

VR U.S. ADOPTION RATES BY HOUSEHOLD

5%

10%

15%

20%

2010

2011

2012

2013

2014

2015

2016

2017E

2018E

2019E

2020E

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What you can’t imagine, you can’t

discover. -Albert Einstein


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Mobile’s low barrier to entry made it a winnerWorldwide VR device consumer shipments, 2016

Oculus Ri^

Google Daydream

HTC Vive PlaySta.on VR

Samsung Gear VR

4.5M

0.7M0.4M0.3M0.2M

•Proac.ve consumer


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Oculus Ri^

Google Daydream


Samsung Gear VR

4.5M

0.7M0.4M0.3M0.2M


•Knowledgeable assistants


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Oculus Ri^

Google Daydream


Samsung Gear VR

4.5M

0.7M0.4M0.3M0.2M



•Quality content


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Oculus Ri^

Google Daydream


Samsung Gear VR

4.5M

0.7M0.4M0.3M0.2M



•Quality content

•Price


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•Quality content

•Price

•Awareness and interest

32%US consumers who have an interest in VR

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Experience from celebrity view

Gatorade partnered up with MLB superstar Bryce Harper to release a VR scenario that gives viewers the chance to see what it feels like to be in the mind and body of Bryce Harper in a clutch game time situation.



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It’s not about impressions- it’s about the impressionVR games engagement

48

7

36

12

Sessions per month

Minutes per session

Games 44%2016


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It’s not about impressions- it’s about the impressionVR games engagement

Games 30%

2020Games 44%2016


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It’s much easier to make bad VR than to make good VR.

-Chris Milk


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The good news is VR users love games!US users’ intended consump.on

To watch live events To watch short videos To have unique VR experiences

To watch TV or movies To play games

81%

53%

38%32%

19%


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…but they aren’t sure how to pay for itUS VR users’ mone.za.on preferences

Remov

e ads

Video s

tream

ing

Vanity

items

In-ap

p purc

hase

s

TV episo

de do

wnload

s

VR versi

on of

2D conte

nt

VR mov

ie do

wnload

s

Full V

R game p

urcha

ses

54%

33%32%31%31%28%27%22%


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VR games will be worth more than $5B in 2020VR games revenue

2016 2017 2018 2019 2020

$5.4B

$3.5B

$1.9B

$0.6B$0.1B

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When Money Isn’t a Good Thing: The Risks of Investing in VR | Stephanie Llamas

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Transcript of When Money Isn’t a Good Thing: The Risks of Investing in VR | Stephanie Llamas