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VR’s 2021 Outlook: 14 Indicators in One Place




Hard data on the VR market is often difficult to come by, while broad ‘industry reports’ are often so general that it’s difficult to see what things look like ‘on the ground’. To get a sense of VR’s outlook in 2021, we’ve collected 14 of the most recent and concrete indicators for your perusal.

Update (February 26th, 2021): Sony’s confirmation this week that a next-gen PlayStation VR headset is in development was big news for the industry at large. We’ve updated this article with the news to give the most accurate picture of the VR landscape in 2021.

Oculus Quest

Zuckerberg: Quest 2 ‘on track to be first mainstream VR headset’, Next Headset Confirmed

Key Data Points:
  • Quest 2 sales drove Facebook’s Q4 non-advertising revenue to $885 million, a 156% increase year-over-year
  • More than 60 Oculus developers have reached $1M+ revenue
  • Estimates based on this data suggest between 500,000 and 1,000,000 Quest 2 units sold in Q4 2020 alone
  • Zuckerberg claims Quest 2 is “on track to be the first mainstream virtual reality headset,” and confirms the next iteration of the headset is in development

Takeaway: Thanks to Quest 2’s performance, Facebook is more bullish than ever on VR. While Zuckerberg in years past has described the company’s VR work as long-term investments not expected to pay out for years; he says about the company’s latest results, driven by Quest 2, “I think that this quarter’s results show that this future [that we’ve been working toward in VR] is here.”

Total Quest Games Reviews Have Exceeded Oculus PC Reviews in Less Than Two Years

Key Data Points
  • The total count of game reviews on the Quest store have surpassed those of the Oculus PC store (see chart)
  • The Quest store is seeing many times more reviews per day on average (see chart)
  • 79% of Quest games have surpassed 100 reviews, compared to just 19% of Oculus PC games
  • Games on the Quest store are also rated higher on average than games on the Oculus PC store (see chart 1, chart 2)

Takeaway: These signals show Quest’s momentum compared to Oculus PC, and why Facebook is largely abandoning the latter. Valve, however, continues to support the PC VR ecosystem through SteamVR, and will likely get a boost in growth as a result of users abandoning the Oculus PC ecosystem.


Facebook to Discontinue Rift Product Line in 2021, Will No Longer Build PC-only VR Headsets

Key Data Points:
  • Facebook betting the future of VR on standalone headsets like Quest 2
  • Not just the Rift S will be discontinued this year, but the entire Rift product line (no more PC-only headsets from Facebook)
  • Players can continue to use Quest with a PC thanks to Oculus Link which allows the headset to plug into a capable computer to use high-end VR content

Takeaway: Once a leader in the PC VR space, Facebook seems content to leave that portion of the market to someone else (namely, Valve). While Quest and Quest 2 can continue to work with a PC by plugging in, the company’s PC VR store has been left to languish. Facebook believes affordable standalone headsets will capture the mainstream market it’s seeking

Valve: Steam Saw 1.7 Million New VR Users in 2020, 71% Increase in VR Game Revenue

Key Data Points:
  • 1.7 million new VR users on Steam in 2020
  • 104 million VR sessions on Steam in 2020
  • Average VR session playtime in 2020 was 32 minutes, a 30% increase year-over-year
  • VR game revenue on Steam grew by 71% year-over-year (Half-Life: Alyx accounts for 39% of that growth)

Takeaway: Steam may not have seen the breakout success of Quest in 2020, but the platform continues to grow. A large portion of revenue growth in 2020 came directly from Half-Life: Alyx, which shows the game cementing its mark as one of VR’s killer apps.

Analysis: Monthly-connected VR Headsets on Steam Pass 2 Million Milestone

Key Data Points:
  • Monthly-connected headsets on Steam reached 2 million for the first time in 2020
  • 2 million headset milestone first reached in April 2020, but now held consistently for four months running, with an all-time high in November 2020 at 2.3 million (see graph)
  • It took 40 months for Steam to reach 1 million monthly-connected headsets, but just 7 more months to reach 2 million
  • Monthly-connected headsets up 94% year-over-year

Takeaway: The number of Steam users with VR headsets continues on a strong growth trajectory. While Facebook headsets make up 51% of connected headsets (see graph), a larger number of induvial headsets now hold sizeable shares, showing increasing competition and choice for consumers (see graph). The five most popular headsets on Steam are: Rift S, HTC Vive, Oculus Quest, Valve Index, and Rift.

Despite Shortages, Valve Index Among Steam’s 5 Top-grossing Products for 13 Weeks Straight

Key Data Points:
  • Index has been among the 5 top-grossing products on Steam for 13 weeks running (see chart)
  • The headset has also peaked as the #1 grossing Steam product on eight separate occasions since release (see chart)

Takeaway: Index may not be selling in massive numbers, but its big price tag means it has been earning as much if not more revenue than many major games on Steam. The data suggests that Index has been a significant revenue stream for Valve—likely much larger than Half-Life: Alyx—showing that the enthusiast VR segment is willing to shell out cash for high-end headsets.

PlayStation VR

Sony Confirms Next-Gen PSVR is Coming, New Controllers to Feature DualSense Tech

Key Data Points
  • Sony has finally, in no uncertain terms, confirmed it will be launching a next-gen PSVR headset for PS5—but not in 2021
  • Technology from PS5’s lauded ‘DualSense’ controllers will be part of the next-gen controller design 
  • The company had not previously outlined its future VR plans, leaving many to wonder if the company would be exiting the segment

Takeaway: Despite a strong sales record and some great games for Sony’s first-gen PlayStation VR headset, in recent years the company’s silence on its future VR plans had grown deafening. With a new console just hitting the market and the aging PSVR nearing its fifth anniversary, it was beginning to look like Sony was muling an exit of the VR segment. While a new headset is on the way, the company says it won’t be released in 2021.

VR Content

For a Veteran Studio That’s Weathered the Storm, VR Has Become a Lucrative Business

Key Data Points
  • VR studio Cloudhead Games shared a graph showing its relative revenue from 2016 through 2020 (see graph)
  • December 2020 revenue grew 60% year-over-year
  • In 2020, unique users that played the studio’s game grew by 131% year-over-year

Takeaway: Cloudhead Games is one of the most veteran VR studios in the industry. CEO Denny Unger revealed the many ups and downs the studio and the industry at large has seen since the launch of the first consumer VR headsets to today. Cloudhead saw the initial VR launch hype dying down by 2018, leaving the studio on the verge of pivoting away from VR. Thanks to a new perspective on VR game design culminating in its latest title, Pistol Whip, and the launch of Oculus Quest, the studio has seen new levels of success in 2019 and 2020.

Google Makes ‘Tilt Brush’ Open Source as Active Development Comes to a Halt

Key Data Points:
  • Google formerly ceased development on Tilt Brush, a VR painting app which has been called an early VR ‘killer app’ by some
  • Though official development comes to a halt, Google open-sourced the project so that it can live on

Takeaway: Though Google was very bullish on VR through 2016 and 2017, the company didn’t see the traction it hoped for with Daydream, its Android-based VR platform. Having largely dropped its VR ambitions by 2018, the fact that Tilt Brush lasted as long as it did is somewhat surprising. Alas, the company’s history of shutting down projects made this a likely eventuality. For companies like Google, which are only interested in projects that quickly find significant traction, VR remains a difficult sector to enter because the use-cases which can drive mass scale are still limited by the quality and cost of VR hardware.

‘The Walking Dead: Saints & Sinners’ Surpasses $29M in Revenue

Key Data Points:
  • The Walking Dead: Saints & Sinners reached $29 million revenue in just one year
  • In a little over three months, the Quest version of the game sold 10 times better than the Oculus PC version despite being available for one year

Takeaway: Though the VR gaming market is still small compared to the non-VR gaming market, small teams that understand the medium are finding growing success. The Walking Dead: Saints & Sinners comes from a small studio which has been immersed in VR development since the early days, and has found a strong product-market fit. Quest is increasingly becoming a top priority as a target platform for VR content among studios hoping to maximize their customer base.

‘Rec Room’ Now Has Over 1 Million Monthly Active VR Users

Key Data Points:
  • Social VR app Rec Room has surpassed 1 million monthly active VR users, making it one of the most frequently trafficked VR apps thus far
  • Daily active VR users are spending an average of 2.7 hours per day in Rec Room
  • Quest 2 users make up about half of the app’s VR population

Takeaway: Social VR applications which also provide activities for users to partake in (rather than just chat rooms) are emerging as increasingly popular apps, though supporting both VR and non-VR players seems to be a key component to growth. Apps like Rec Room and VRChat have both benefited from that approach, as well as growth powered by a broad increase in digital entertainment in 2020 as a result of Coronavirus lockdowns.

Wave Deprecates VR App to Focus on Broader Distribution of Its Virtual Performances

Key Data Point
  • Wave started out hoping to bring virtual concerts to VR as ‘the future of music’ but has pivoted away from the medium to deliver its productions through traditional screens to reach a wider audience

Takeaway: VR is still far from a mass medium; live-event businesses that require large audience reach won’t find it on VR without either building it themselves through a killer app or waiting several more years for the market to continue to grow. While some VR games have amassed millions of monthly active VR users, such audiences are divided across several content ecosystems and do not easily flow from one app to another.

Out-of-home VR

VR Destination ‘Sandbox VR’ Emerges from Chapter 11 Bankruptcy After Reorganization

Key Data Point:
  • After filing for bankruptcy in August, 2020, the VR arcade company was able to emerge from bankruptcy in December after restructuring $13.6 million in debt

Takeaway: The slowly growing sector of out-of-home VR businesses, like VR attractions & arcades, was hit exceptionally hard by the pandemic. While many traditional businesses have managed to re-open after putting various restrictions in place, out-of-home VR businesses had an understandably difficult time convincing customers to wear headsets on their face that were previously worn by strangers. While Sandbox VR managed to stave off an outright shuttering, many, like The VOID, recognized as a leader in the space, weren’t so lucky.

Notable Investments & Acquisitions

  • Coatsink acquired by Thunderful
    Veteran VR developer acquired in deal worth up to $85 million
  • Varjo – $54 million
    High-end enterprise PC VR headsets
  • Rec Room – $20 million
    Social VR-optional game and creator platform
  • Pimax– $20 million
    Enthusiast PC VR headsets
  • Survios – $16.8 million
    VR game studio
  • Osso VR – $14 million
    VR surgery training software
  • Transfr– $12 million
    VR job training
  • Thirdverse– $8.5 million
    VR game studio
  • CREAL– $7.2 million
    Light-field display tech for VR and AR headsets
  • Kuato – $6 million
    Educational games for VR
  • Arthur Technologies – $2.5 million
    VR office collaboration software
  • Immerse – $1.5 million
    VR language learning platform
  • ForeVR– $1.5 million
    Social VR games

Takeaway: With the pandemic on everybody’s mind, it’s no surprise to see recent investment activity centered around both social VR and VR collaboration & education applications, as lockdowns have highlighted VR’s ability to make distant connections feel more real. In the backdrop we can see investment interest in future VR hardware and technology from the likes of Varjo, CREAL, and Pimax.

The post VR’s 2021 Outlook: 14 Indicators in One Place appeared first on Road to VR.



MLB The Show heads to Game Pass, and Mario has passed away | GB Decides 190




Join Transform 2021 for the most important themes in enterprise AI & Data. Learn more.

On this week’s episode of the GamesBeat Decides podcast, reviews editor Mike Minotti shares some deeply troubling information about the nature of the game Kingdom Hearts 358/2 Days.

Also, Mike and fellow editor Jeff Grubb talk about MLB The Show launching on Xbox Game Pass, Mario’s death, and Balan Wonderworld. Join us, won’t you?


GamesBeat’s creed when covering the game industry is “where passion meets business.” What does this mean? We want to tell you how the news matters to you — not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. How will you do that? Membership includes access to:

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  • Special members-only interviews, chats, and “open office” events with GamesBeat staff
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Solaris: Offworld Combat Gets PSVR Physical Launch In June, Planned Digital Release In May




Solaris: Offworld Combat is coming to PSVR this June with a physical release from Perp Games. According to a First Contact Entertainment representative, the digital version is planned to release a month earlier in May.

Perp Games on Twitter: “We’re not finished just yet. Solaris Offworld Combat is the next game to be getting a physical box release. Coming in June to global markets! Will you be buying it?” / Twitter

Solaris: Offworld Combat on PSVR

Originally, Solaris was coming to PSVR late last year around the same time as the Quest and PC VR version of the game but got delayed. Now, it’s slated for release in just a couple of months.

The latest VR shooter from First Contact Entertainment (creators of Firewall Zero Hour) is a sci-fi competitive VR shooter that feels a bit like Quake in VR due to its speed and intense arena levels. It’s a very breezy, fast-paced game that’s accessible and easy to quickly jump in and out of. The closest comparison is probably Hyper Dash.

Soalris is a notable release because other than Firewall Zero Hour, there really haven’t been many options for shooter fans on PSVR. Alvo is coming soon too, but the headset is on its last legs at this point.

The PS Aim Controller continues to be one of the best things about the PSVR platform, so I’m all for seeing more games support it, but it’s a shame games like this didn’t hit PSVR earlier in its life cycle. Hopefully PSVR 2 on PS5 is backwards compatible and it can give late-life cycle games like this one new life when it releases.

Solaris is coming to PSVR very soon with a planned digital release in May and physical release from Perp Games in June. For more on this game make sure and read our Solaris: Offworld Combat review and stay tuned for all the latest in VR.

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Black Box VR Developers Share Thoughts on the History and Future of VR Fitness




The VR fitness genre is still relatively new, all things considered. Even though the space is still somewhat niche, it’s absolutely growing at a fast pace as seen by the number of games and players that continue to spring up. How did we get to this point though, you might ask?

Continue reading on VR Fitness Insider.

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US Army Signs Contract For Wide-FoV HoloLens Headsets From Microsoft




Microsoft won a large US Army contract to supply advanced AR headsets for frontline soldiers, based on the HoloLens platform.

The US Army’s Integrated Visual Augmentation System (IVAS) program aims to equip infantry with AR helmets for situational awareness and convenient display of sensor outputs.

The contract is worth up to $21.88 billion over 5-10 years. While the order has been widely reported as 120,000 units, a US Army statement to Breaking Defence suggests that is the maximum, not a fixed quantity.

Early evaluation units based on HoloLens 2

In 2018 Microsoft won the $480 million evaluation contract for just over 2500 units, based on HoloLens 2 with some modifications and an extra sensor.

The current, ruggedized, upgraded IVAS

The evaluation found the hardware not rugged enough for military use, and identified problems with the sensors at night. Since then the hardware has been significantly upgraded. It’s more ruggedized and houses many more sensors.

The field of view has been significantly increased from roughly 40°x30° to 80°x40°. That’s significantly wider than any other see-through AR headset on the market.

Reported use cases for the headset include:

  • overlaying icons on friendly units, objectives, threats, and points of interest
  • built-in night vision & thermal view modes
  • live picture-in-picture feeds from drones, including the Soldier Borne Sensors (SBS) personal drone
  • simulated weapons & enemies for training exercises
  • scanning nearby people for high temperature (COVID-19)
  • facial recognition for hostage rescue situations

The Army is also testing integrations with vehicles, such as soldiers being able to see-through the walls of the armored vehicle carrying them. That means on dismounting they’ll be situationally aware.

Some Microsoft employees have protested providing technology for the military, but that’s unlikely to have any effect given the enormous potential value of the contract.

IVAS is still in the late testing & evaluation stage, and the scale of deployment will depend on future budgets. But if things go to plan, frontline soldiers could be equipped with these game-changing AR capabilities by the end of the decade.

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