The VR market is currently facing a downturn. From the initial surge of capital investment, to today's limited interest, many have declared VR dead. However, there are still passionate believers who remain committed to the technology. Signs are emerging that suggest VR is not finished—it just needs a revival. With the right strategies and innovation, the VR industry is expected to regain momentum and continue growing.
VR games and hardware have gone through a rollercoaster ride in recent years. Some are skeptical about its future, while others remain optimistic. This article, titled "VR Isn't Dead—It Was Just Taking a Nap," was written by Patrick O’Luanaigh, CEO of nDreams, a VR game developer. He believes the future of VR holds great potential and offers insights for developers in the field.
One of nDreams' successful titles is *Shooty Fruity*, a fun and engaging VR experience. Two years ago, high-end VR headsets made their way into major retail stores and were seen as the next big thing. Many predicted a full-scale VR revolution would soon arrive. However, by the end of 2017, the hype had faded, and the market was no longer as promising as it once seemed.
Several major companies have announced cuts or closures in their VR divisions. For example, Sony shut down Guerrilla Cambridge, and CCP Games discontinued its VR projects. These moves have raised concerns about the future of VR. But if we look beyond the negative headlines, there are still signs of hope.
While early sales of VR equipment were uncertain, the third quarter saw a breakthrough, with over one million units sold. Nearly half of these came from Sony, and the top three manufacturers—Sony, Oculus, and HTC—accounted for 86% of total sales. According to Canalys, part of this growth can be attributed to price reductions, such as Oculus lowering the Rift’s price to $399. The increased demand has also led to higher stock levels of PSVR headsets.
As the VR industry matures, developers should focus on two key strategies: controlling scale and diversifying development. Controlling scale means being mindful of team size, budget, and project scope. Ambitious projects with budgets exceeding $1 million may not be feasible unless supported by device manufacturers. Instead, focusing on smaller, innovative, and profitable projects is more sustainable.
Developers should avoid creating linear games where players only see the same content once. Instead, they should use repetition, device reuse, and efficient game mechanics. Also, staying responsive to market trends and user feedback is crucial. For instance, *The Assembly* initially launched without motion controls, but after user feedback, the feature was added, significantly boosting long-term sales. Promotions and data-driven optimization also play a vital role in success.
Diversified development is another important approach. When the VR market is still developing, companies can balance their workload by creating independent games and taking on funded projects. It’s essential to assess team strengths and allocate resources wisely. Exploring different areas of VR, such as engineering or design, can open up new opportunities.
Team composition is also critical. Assigning the right people to the right roles ensures efficiency. When taking on funded projects, balancing experienced experts with general staff helps manage workload fluctuations. Hiring external talent during peak times and reducing staff when needed can be effective.
Collaborating with local universities can also provide a steady flow of fresh ideas and research. Finally, don’t let the skeptics discourage you. Although VR hasn’t met everyone’s expectations, the recent drop in prices and the introduction of new devices like Microsoft Mixed Reality, Skyrim VR, and LA Noire VR show signs of a potential revival.
nDreams has already sold 300,000 VR games and earned $3.5 million in revenue. This is just the beginning, and we hope it inspires other developers to keep pushing forward in the VR space.
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