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Virtual Reality Headsets to generate US$895 million revenue in 2016

  • Published by Ozgur Tore

vr gearAlthough due to high price state-of-the-art virtual reality headsets tethered to PCs and Game Consoles will barely exceed 1.7 million devices shipped globally in 2016, awareness of - and actual exposure to - such state-of-the-art systems will build rapidly in 2016. A new report reveals outlook for the virtual reality headsets market.

According to the latest research from Strategy Analytics global virtual reality headset revenues will reach $895 million in 2016 with 77% of that value accounted for by newly launched premium devices from Oculus, HTC and Sony. These three brands however will only account for 13% of volumes in 2016 as lower priced smartphone-based devices will dominate share of the 12.8 million unit virtual reality headset market. The analyst firm sees 2016 as a pivotal year for virtual reality given a confluence of factors, and also one where managing expectations will be paramount given a dearth of available content and the technical limitations of entry-level virtual reality.

vr headsets2016

Strategy Analytics predicts that state-of-the-art virtual reality headsets tethered to PCs and Game Consoles will barely exceed 1.7 million devices shipped globally in 2016 due to prohibitively high pricing. However, awareness of - and actual exposure to - such state-of-the-art systems will build rapidly in 2016 given a spate of highly anticipated commercial product launches from Oculus, Sony and HTC. At the same time, smartphone toting consumers are being bombarded by low cost and often bundled-in VR viewers like never before. With proper ecosystem management, Strategy Analytics’ analysts believe that smartphone-based VR can serve as an effective “gateway drug” to upsell users to higher quality VR experiences down the road while locking them into early but potentially sticky ecosystems.

Cliff Raskind, Director of Strategy Analytics’ Wearable Device Ecosystems service, noted, “Consumers will soon be exposed to an incredible diversity of virtual reality options ranging from ultra-low cost to super premium. While we expect smartphone-based viewers to take the lion’s share of VR headset volumes in 2016 at 87% of shipments, PC and Game Console powered headsets will absolutely dominate value share commanding 77% of revenues.” He went on to say, “Additionally, we believe VR has the potential to fuel a new tech spec race in hardware areas such as display resolution, GPUs, storage and 360° cameras.”

In our spotlight section last year we have published an article titled VR will Be the Next Trend in Tourism Advertising, but… “What is VR?” that we think may take your attention.

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