Eight Signs You Made A Great Impact On VR Games

Throughout the previous couple of years, we have seen a plethora of news articles about the way virtual reality was going to save the classic arcade. The theory goes that the VR indoor jungle gym equipment is too expensive for home users, therefore it creates an chance for operators to pony up the big bucks to purchase it and then make their money back by charging a match to play with it.
"While many high-end headsets were released annually which can bring virtual-reality adventures to your living room, adoption of this technology remains in its first days for a bunch of reasons--it is still bulky, expensive, and there isn't all that far to do as soon as you've got it on your face. More than two million cans were shipped worldwide in 2016, according to an estimate from market researcher Canalys, but this figure pales compared to the prevalence of, say, video game consoles (sales of their top one, Sony's PS4, topped six million during the 2016 holiday season ). Consumer virtual reality will likely catch on as costs come down and cans improve. Meanwhile, however, a number of businesses are betting that customers may be pleased to pay a much smaller amount to try the tech with their buddies at, say, an arcade, theme park, or bowling alley"
It's tempting to fall into this trap, but from an operator's perspective VR is a terrible thing. Operators are being asked to pay top dollar for tech that's all but guaranteed to plummet in value within the very short term. Aside from purchasing a brand-new car and driving it a mile, I can't think about a way that you could eliminate money faster between what you pay and what you'll have the ability to get for it down the road.
Another limit for operators is that while you might have the ability to provide a space for VR people to roam around in today, as new VR tech is unveiled, we are going to see the point expanded from 100 square feet to the entire world. Instead of viewing just the games in your headset, you'll realize the real world with game play overlayed. Since the tech allows more actual world areas to be explored, it's going to earn a cramped arcade look fairly feeble in comparison.
VR is already heading for mass market acceptance, however it's demand isn't being pushed by players who wish to pay big buck to play with video games, but such as the BETAMAX that came before it, by people who wish to watch pornography in their homes.
Even if an operator can make just a little bit of money for the next few decades, after VR achieves critical mass, it will crush whatever revenue flow that operators're dreaming of. Do not believe me? Just check out what is happening in China.
A year later 22,000 of these have closed.
This is an incredible failure rate over such a brief time period and one which should serve as a sharp warning to anyone considering investing in the VR games. Perhaps Dave and Busters can afford to take losses on the games more than Chinese startup arcades, however I doubt that most North American operators are going to fare far better using the tech in their game rooms and will only end up in debt in the close of the day.
The problem basically boils down to customers not being willing to pay a premium to the encounter. Tech In Asia, clarifies the issue perfectly in their own article, on that the Chinese VR boom and bust.

"Enterprising shop owners jumped into VR are finding it impossible to charge fees akin to cinemas or bowling alleys to get a VR experience. One VR arcade proprietor told iHeima that he saw eager queues when charging US$1.50 to get a 30-minute session, but everybody vanished as it climbed to US$5. From that sort of revenue it's impossible to cover the rent."
Even if the match was sold out all day, at $1.50 per half hour they're only earning $30 a day. Together with retail rents in North America running $1 -- $2 a square foot, there is no way to make the math work, even if you assume that Americans will pay more to play the matches.
The actual world information flowing in from China must function as a canary in the quarter plantations of North America. Operators who spend considerable amounts of money on fancy VR setups will probably find their small VR rooms being replaced by the entire world for a stage. As the setups get cheaper, smaller and more portable, the virtual arcades will seem more costly, bulky and limited. I'd like to be proven wrong on this one, but I think the arcade VR fad is more hype than hope.