virtual reality: nunatak update iv

7/27/2019 Virtual Reality: Nunatak Update IV

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S P O T L I G H T

After many years of existence with early adopters in gaming and entertainment, Virtual Reality(VR) is just about to break into the mass market.

Headsets running customized software create an immersion into an artificial world inducing

reality-like feelings and experiences using 3D visuals and sound.

Oculus VR is the first player to introduce an affordable device for the mass market. Its

acquisition by Facebook for USD 2 bn raised awareness for future use of the technology.1

It is a fast growing market: Total cumulative headset units by all manufacturers sold from

2014 to 2018 are estimated to reach more than 55 m.2Samsung and Google made headlines

recently with the announcement of new devices connected to smartphones.

UPDATEVIRTUAL REALITY

www.nunatak.com Issue 4

Sources:1Business Insider (2014), 2Kzero (2014), 3Techtimes (2014), 4Tomshardware (2014), 5Howstuffworks (2014), 6Forbes(2014), 7Kickstarter (2012), 8TheVerge (2014), 9Sammobile (2014)

August 2014

D E F I N I T I O N

T I M E L I N E O F V R I N N O VAT I O N

VR immerses the user in an articial environment created by software on display

screens or through wearable devices like head mounted displays, VR glasses etc. These

environments are experienced through the senses of sight and sound. The users

conscience moves out of its real world environment. The simplest form of VR is a 3D

image. Evolution of VR has led to the emergence of innovative technologies like

haptic devices that deliver results based on touch coordination and pressure sensitivity.

VR has its frst

appearance in

arcade games: Users

enter a 3D-world

via goggles in

a closed cabinet4

SEGA introduces its

wrap around VR glass

"Genesis" at the

Consumer Electronics

Show4

VR devices are

used to perform the

frst robotic

surgery in Paris5

Ford starts using

VR in design and

production of vehicle

prototypes6

Oculus uses Kickstarter

to fnance its VR

device "Rift" and

allows developers to

build games for their

headsets7

Facebook buys Oculus

VR for USD 2 bn.

Samsung cooperates

with Oculus for Gear

VR, Google creates

Google Cardboard8,9

1991 1993 1998 2000 2012 2014


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Active users worldwideareexpected to grow from 600,000 in

2014 to 47.6 m by 2018.

Unit sales of VR products areexpected to rise from 200,000 by the

end of 2014 to 23.8 m by 2018.

Sources:11Adage (2014), 12Ehow (2014), 13Adnews (2014), 14Virtuix (2014), 15Thomasnet (2014), 16Ripublication (2013), 17Kzero(2014), 18Kzero (2014), 19Adage (2014), 20Red Bull Cliff Diving (2014), 21Marketingmagazine (2014), 22Kzero (2014)

Market estimates 2014 and 201818

Business opportunities using Virtual Reality

Total Revenue for Consumer VR17(in m USD)

Hardware(Devices)

Software(Games&

Apps)

Virtual Car Design

Virtual Cliff Diving

Virtual Catwalk

Virtual Newsrooms

Nissan and Oculus VR

designed a virtual

environment, in which young

consumers were able to

design their own Nissan car

at the Tokyo Motor Show.19

Through Oculus Rift, Red Bull

let users experience a

realistic cliff dive resulting in

strong physical reactions.20

Topshop gave customers the

opportunity to watch

its fashion show via VR

glasses in order to make itaccessible to everyone

present in the store at that

particular time.21

BBC provides their viewers

with a real time experience of

being in the newsroom.22

B R A N D S

U S I N G V R F O R

M A R K E T I N G

>Media & Advertising:

Generates new forms of interactive,

social advertising, which puts

users in direct contact with the

product and the brand11

>Entertainment industry:

Enriches user experience through

full immersion of the user in

the virtual world of entertainment

(virtual museums, interactive

theater performances etc.)12

>Sales & E-Commerce:

VR is a great sales tool

for things that are hard to

visualize remotely like fashionor real estate13

>Gaming:

Improved gameplay experiences

through ever more realistic

representation: For instance, Virtuix

Omnis hardware records physical

movements and transports theminto the game.14

>Automotive Industry:

VR engineering allows simultaneous

work on different entry points

of the rendered model as well as

product demos.15

>HR & Trainings:

Helps to conduct realistic

trainings and virtual meetings thatsave costs and CO216

In 2014, a VR device costsaround USD300 per unit and is expected to

drop by circa USD 50 per year till 2018.

2014 2018 2014 2018 2014 2018

90

2300

5200

20140

1000

2000

3000

4000

5000

6000

2015 20172016 2018

38004600


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VR Products (Hardware)

Sources (all 2014):23Nytimes, 24Oculusvr, 25Save Continue, 26Techcrunch, 27Dodocase, 28Google, 29Chip

H E A D MO U N T E D D I S PL AY S M A R T PH O N E E X T E N S I O NS

Oculus Rift

>Acquired by Facebook for USD 2bn >"The most

advanced immersive entertainment system"23>Used

beyond gaming (architecture, education, etc.)

Price:USD 35024

Sony Project Morpheus

>First major hardware company entering

the market >Only VR headset on the market

working with other gaming devices

Price:USD 249-29925

Google Cardboard

>Foldable cardboard headset combined with

Smartphone >Smartphone app serves as VR

interface presented at Google I/O in June 201426

Price:USD 2027

Googles Project Tango (cooperation with LG)

>Prototype of 7"-tablet device that tracks

motion and creates a 3D model of an environment

>Collaboration between nine countries,

several companies and universities28

Price:n/a

Samsungs Gear VR (prospective design)

>This VR headset will have

a slot to attach a Galaxy

smartphone within

>Software is developed with

Facebooks Oculus

>Expected to be released

by end of 2014

>Entire sectors and Samsung

apps to be dedicated to

Gear VR

Price:n/a29


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The Nunatak Group is a digital strategy consultancy based in Munich.

Our focus is on Mobile Media, Social Media, Growth Strategy, Digital Coaching and

Investment Support for companies in growth industries.

The Nunatak Group GmbH |Managing Partners: Robert Jacobi, Rupert Schfer |www.nunatak.com |[email protected]

Sources (all 2014):30VirtualReality.io, 31The Guardian, 32Counton2, 33Thalmic labs, 34Virtusphere, 35Mashable

Emergence of VR Software and Apps

>VR headsets are incomplete without the software.

Oculus Rift created the open source software

VirtualReality.io that is available for developers to

use, modify and run on any VR device.30

>VR apps are being developed for gaming and

entertainment applications, like Oculus VR Cinema

software and the recently released version of Second

Life, which allows the use of the Oculus Rift headset.31

>Agencies and Publishers see great potential in ad-

vertising on the VR space. E.g. Oculu is developing

a video player to serve pre-roll ads directly into the

platforms using VR technologies.32

Although VR has recently emerged in terms of hard-

and software development, the industry still faces

huge challenges, e.g. in terms of lack of technical

expertise and under-developed infrastructure.

F U R T H E R R E A D I N G

If you have enjoyed reading this Nunatak Update, be sure

to check out our past issues on nunatak.com:

Myo by Thalmic Labs

Virtusphere

VR Gloves & Sensors

The armband tracks muscle

movements on the users forearm

and wirelessly connects to

different devices to control them

(laptop, phone, TV, etc.).33

The company produces a

locomotion sphere that gives

users the impression of movingfreely while staying in the

same place.34

WorldViz produces a 22-

sensor data glove, which helps

in tracking gestures, and

picking and dropping objects in

the virtual world.35

C O M P A N I E S

WITH

V R A S S O L E

P R O D U C T

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virtual reality: nunatak update iv

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