vr: the future is now?

Elena LobovaiLogos CEO

Imagine...

VR is a new mobile?

75

38

13

4 3,5 3 2,5 35

YEARS

YEARS

YEARS

YEARS YEARS YEARS YEARSDAYS

Reaching 50 million users

VR is sexy

Increased number of investments in past

5 years

Enormous interest in media

If this is something Facebook does, I have

to do it

Where is the market?

Total investments in VR and AR reached

$6.1B between 2012 and 2015

More than 800 VR games are in

development now

Nearly 300 companies and 40k employees

in the industry

Total worldwide market for the Virtual Reality gaming hardware,software and peripherals market, 2016 E

2015

$ 662 M

$ 1.8 M$ 121 M$ 540 M

2016e

$ 5.1 B

$ 0.7 B

$ 3.5 B

$ 1.0 B

2017e

$ 8.9 B

$ 1.5 B

$ 5.9 B

$ 1.5 B

2018e

12.3$ B

$ 2.7 B

$ 6.8 B

$ 2.8 B

$ 5.1 b

Mobile PC Console

Funding raised by Virtual and Augmented Realitycompanies, 2015E

notableinvestmentsto date:

Where is the money?Notable Investments and Acquisitions

$ 592 M

$ 131 M

$ 110 M

$ 100 M

$ 94.8 M

$ 56 M

$ 44 M

$ 2 b

the most notableexit to date:

magic leap

Game Development

Camera Tech

Peripherals

3D Engines

Social VR

Headsets 60%

30%

4%3%3%1%

Where is the money?Investment ratios by VR sector

2012 – 2015

Who’s in the game?

Investors

PrivateEquity Investors

Tech DevelopmentInvestors

ContentMarketplaces

Capture, Production & Delivery Software

Game Engines

HeadsetManufacturers

Platform HardwareManufacturers

PeripheralManufacturers

Game Makers

Brands

Other EntertainmentProviders

Analytics

Other B2B & Enterprise Uses

Software, Platforms& Delivery Services

Hardwaremanufacturers

Contentdevelopers

LIGHTMOBILE VR

Notable devicesGoogle Cardoard

($10-120)

Supporting hardwareSmartphone ($350+)

71%PREMIUM

MOBILE VR

7%

Notable devicesSamsung Gear VR ($100)

Supporting hardwareSamsung Galaxy

Smartphone ($500+)

17%

PC VR

Notable devicesOculus Rift, HTS Vive

($300-700+)

Supporting hardwareGaming PC ($1000+)

CONCOLEVR

Notable devicesPlaystation VR

($400-600)

Supporting hardwarePlaystation 4 ($350)

5%

Who’s leading the pack?

Low immersion(low end)

Wirelessheadsets

Wiredheadsets

Wiredheadsets

LIGHTMOBILE VR

Notable devicesGoogle Cardboard

($10-120)

Supporting hardwareSmartphone ($350+)

71%PREMIUM

MOBILE VR

7%

Notable devicesSamsung Gear VR ($100)

Supporting hardwareSamsung Galaxy

Smartphone ($500+)

17%

PC VR

Notable devicesOculus Rift, HTC Vive

($300-700+)

Supporting hardwareGaming PC ($1000+)

CONSOLEVR

Notable devicesPlaystation VR

($400-600)

Supporting hardwarePlaystation 4 ($350)

5%


Nothing really new in the games industry for more

than 5 years

The growth of smartphones has lowered the price of processing power

People are excited about VR and awareness

is growing

Gamers will be (are?) the early adopters of VR

An opportunity for small developers while larger publishers are taking

a wait-and-see approach

A blue ocean of new genres and other opportunities

Why now?

Why not now?

Market size is still very small

No successstories

Too much excitement can lead to overvaluation

(e.g., technology bubble)

Technology is still not perfect

Physical and mentalhealth concerns

What’s next?

Oculus starts shipping on March

28th, 2016

Acquired AR software market Metaio

and hired a VR expert

Reportedly has projects under the hood in its computer vision R&D department

HTC Vive pre-orders to open on February 29th,

2016

PlayStation VR will be coming in the first half

of 2016

Waiting for Google, Apple and Amazon to join

the pack

THE INDUSTRY IS WAITINGto hear what two sleeping giants are up to

What’s next?

Starting in 2016, VR will be in the consumer market

permanently

The worldwide market for VR gaming will reach around $5B in 2016

and $60-200B in 2025 with an install base of 55M and 500-1000M

consumers accordingly

Consumers will use their smartphones to first explore Virtual

Reality, before committing to the more expensive platforms

(around 70% of the market in 2016)

What’s next?

Headsets sales will grow dramatically each year (especially wireless),

as well as the their variety

Microsoft will join PlayStation with the headset for XBox

New VR game genres will appear

Next generation VR with hand tracking, full body tracking

and finally eye tracking

User created content (starting from videos 360)

The technology improves, the cost drops

What’s next?

Augmented reality will be the next big thing, even bigger

than VR

The mix of AR & VR

Travelling Time travelling Movies Live streaming

TV, Reality Shows

Adultentertainment

Education, Healthcare, Courtrooms

Theme park and Attraction

VR Socialnetworks

This is not the end of innovation.It’s not even the end of the beginning. It’s only the beginning

of the beginning.

Welcome to 2016The Year of VR Dawn

The Future is Now

Elena LobovaiLogos CEO

THANKYOU