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
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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STEPHANIE LLAMAS VP of Research and Strategy Head of VR/AR Strategy
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
s: 5
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
s:
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
2016 2017 2018 2019 2020
$37.7B
$23.4B
$13.6B
$4.9B$1.8B
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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VR revenues since 2016 are worth only 46% of investment dollarsVR so^ware investment
2012-2015 2016InvestmentInvestment Revenue Revenue
$314.4M
$556.2M
$137.6M$72.3M
$902.1M
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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VR revenues since 2016 are worth only 46% of investment dollarsVR so^ware investment
2012-2015 2016InvestmentInvestment Revenue Revenue
$99.9M
$324.8M
Games
$314.4M
$556.2M
$137.6M$72.3M
$902.1M
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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VR revenues since 2016 are worth only 46% of investment dollarsVR so^ware investment
2012-2015 2016InvestmentInvestment Revenue Revenue
$99.9M
$324.8M
36% 92% 13% 44%Games
Technology is anything that wasn’t
around when you were born.
-Alan Kay
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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
14
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
16
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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
17
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
What you can’t imagine, you can’t
discover. -Albert Einstein
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
•Knowledgeable assistants
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
•Knowledgeable assistants
•Quality content
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
•Knowledgeable assistants
•Quality content
•Price
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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Mobile’s low barrier to entry made it a winnerWorldwide VR device consumer shipments, 2016
•Proac.ve consumer
•Knowledgeable assistants
•Quality content
•Price
•Awareness and interest
32%US consumers who have an interest in VR
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The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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.
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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It’s not about impressions- it’s about the impressionVR games engagement
Games 30%
2020Games 44%2016
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
It’s much easier to make bad VR than to make good VR.
-Chris Milk
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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%
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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%
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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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
33
The Risks of Inves.ng in VR, Casual Connect Europe | © 2017 SuperData Research. All rights reserved.
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