Ten Questions and Answers to VR Games

Throughout the previous few years, we've seen a plethora of news posts about the way virtual reality was about to save the classic arcade. The idea goes that the VR gear is too expensive for home users, so it creates an opportunity for operators to pony up the big dollars to buy it and then make their money back by charging per game to play it. From the MIT Technology Review.
"While many high-end cans were released last year which can bring virtual-reality adventures to your living room, adoption of the technology is still in its first days for a lot of reasons--it's still bulky, expensive, and there isn't all that much to do as soon as you've got it on your face. More than two million headsets were sent globally in 2016, according to an estimate from market researcher Canalys, yet this figure pales in comparison to the prevalence of, say, video game consoles (sales of the top one, Sony's PS4, topped six million during the 2016 holiday season alone). Consumer virtual reality will probably catch on as costs come down and headsets improve. In the meantime, however, a number of companies are betting that consumers may be pleased to pay a much smaller amount to try the tech with their friends at, say, an arcade, theme park, or even bowling alley"
It's tempting to fall into this snare, but in the operator's perspective VR is a terrible deal. Operators are being requested to pay top dollar for technology 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 not think of a way that you could eliminate money quicker between what you pay and what you will have the ability to get for it down the road.
Another limitation for operators is that while you might have the ability to supply a space for VR people to roam around in today, as new VR tech is introduced, we're going to see the point expanded from 100 square feet to the entire world. Rather than viewing just the games in your headset, you will see the real world with sport play overlayed. Since the technology allows more real world places to be explored, www.recreationreview.net it's going to earn a cramped arcade look fairly lame in comparison.
VR is heading for mass market acceptance, however it's demand isn't being driven by gamers who want to pay big buck to play video games, but like the BETAMAX that came before it, by individuals who want to watch pornography in their homes.
Even when an operator can create a bit of money for the upcoming few years, once VR achieves critical mass, then it is going to crush whatever revenue flow that operators're dreaming of. Do not believe me? Just check out what is happening in China.
This past year, an eye popping 35,000 virtual reality arcades opened up in China. A year after 22,000 of these have closed.
This is an unbelievable failure rate over this short time period and one that should function as a sharp warning to anyone considering investing in the VR games. Perhaps Dave and Busters can afford to take losses over the matches longer than Chinese startup arcades, but I doubt most North American operators will fare far better using the technology in their game rooms and will only wind up in debt at the close of the day.
The issue basically boils down to consumers not being prepared to pay a premium to the experience. Tech In Asia, describes the problem perfectly in their article, on the Chinese VR boom and bust.

"Enterprising store owners jumped into VR are finding it impossible to charge fees akin to cinemas or bowling alleys for a VR experience. 1 VR arcade owner told iHeima that he saw eager queues when charging US$1.50 to get a 30-minute session, but everybody vanished as it rose to US$5. By that sort of revenue it is not possible to cover the lease."
Even if the game was sold out daily, at $1.50 a half hour they are only earning $30 a day. Together with retail rents in North America running $1 -- $2 a square foot, there's no way to make the math work, even if you assume that Americans will pay more to play the games.
The actual world information streaming in from China should function as a canary in the quarter mines of North America. Operators who spend considerable amounts of money on fancy VR setups will soon find their little VR rooms being substituted by the entire world as a stage. Since the installations get more expensive, smaller and more portable, the digital arcades will look more costly, bulky and restricted. I'd like to be proven wrong on this one, but I think the arcade VR fad is more hype than hope.