The VR market is currently facing a downturn. From the initial surge of massive investments, it has now shifted to a phase where only a few enthusiasts remain engaged. Many have declared that VR is dead, but there are still passionate advocates who believe in its potential. Signs are emerging that the industry is preparing for a revival, and with the right strategies, VR could soon regain its momentum.
VR games and hardware have experienced a rollercoaster ride in recent years. While some remain skeptical about its future, others are optimistic and excited about what's ahead. This article, titled "VR Isn't Dead – It Just Took a Nap," comes from Patrick O’Luanaigh, CEO of nDreams, a VR game developer. He believes in the future of VR and offers insights and suggestions for fellow developers in the field.
One of nDreams' popular titles, *Shooty Fruity*, showcases the potential of VR gaming. Two years ago, high-end VR headsets made their way into major retail stores and were seen as the next big thing. People predicted a full-scale VR revolution was on the horizon. However, by the end of 2017, the enthusiasm had waned significantly.
Several big names in the industry have started to pull back. For example, Sony closed its Guerrilla Cambridge studio in January, and CCP Games, known for its VR projects, announced the end of its VR operations in November. These moves have led many to question the future of VR.
But if we look beyond the negative headlines, there are still signs of hope. The VR sector is slowly recovering, even if it's not yet back to its peak. At the start of this year, VR headset sales were uncertain, but by the third quarter, they saw a significant boost, surpassing one million units. Nearly half of these sales came from Sony, with the top three brands—Sony, Oculus, and HTC—accounting for 86% of total sales.
According to Canalys, part of this growth can be attributed to price reductions. In September, Oculus lowered the price of the Rift to $399, which helped drive demand. Additionally, increased consumer interest has led to a rise in PSVR stock, showing that the market is still alive.
As the VR industry matures, developers should focus on two key strategies to maintain a competitive edge: **controlling scale** and **diversifying development**.
**Control Scale**
When developing VR products, it’s important to manage both your team size and project scope. As a developer, always think about how to keep things manageable. For instance, you need to understand the type and budget of your VR game. If your budget exceeds $1 million without support from device manufacturers, the current market may not be able to sustain such ambitions.
Instead of investing heavily in large-scale VR ventures, consider focusing on smaller, innovative, and profitable projects. Many companies have failed because they aimed too high and couldn’t meet market expectations. VR is still digesting expensive content, so it’s better to aim for something more accessible.
This principle also applies to game design. Avoid creating linear experiences where players just pass through levels. Instead, use repetition, device reuse, and smart mechanics to create engaging VR games. Be responsive to user feedback and adjust your game concepts accordingly. For example, *The Assembly* initially launched without motion controls, but after adding the feature based on player input, its long-term sales improved dramatically. We also used seasonal promotions and data analysis to refine the game and develop new ones.
**Diversified Development**
When the VR market isn’t fully developed, balancing your workload can mean working on self-funded projects while taking on external contracts. It’s essential to assess your team’s strengths and allocate resources effectively to maximize returns.
Be cautious when exploring different areas of VR. The market is expanding into fields like engineering and design, offering new opportunities. Find a project that aligns with your team’s capabilities and fosters innovation.
Team composition is also crucial. Ensure that the right people are in the right roles. If you’re planning to take on funded projects, balance your team with experts and generalists. You can also hire external specialists during peak workloads and reduce staff when needed.
Collaborating with local universities can also bring fresh ideas and research into your development process.
**VR Is Not Dead**
Finally, don’t let the skeptics discourage you. Although the VR market hasn’t met everyone’s expectations, it’s far from over. Recent price drops and the release of new devices like Microsoft MR, *Skyrim*, and *LA Noire* suggest a potential resurgence.
nDreams has already sold 300,000 VR games and generated $3.5 million in revenue. This is just the beginning, and we hope it inspires other developers to keep pushing forward. The future of VR is still bright—if we stay patient, creative, and adaptable.
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