Sales, layoffs, price reduction VR is no longer hot in the future how to go?
[According to the “China VR Industry Application Survey Report†published by GFK, the planners are more concentrated in various fields, with 60% of planners designing entertainment/gaming areas, and the second place is education, accounting for 35%. ]
The rush of VR entrepreneurship that has swarmed in has been calm in the process of closures, transitions, and layoffs. Under China's entrepreneurial environment, VR has completed the first round of market education: an unprecedented immersive experience will lead to new changes in hardware and content production. However, at the same time, there are bottlenecks in the underlying technologies of VR hardware, consumer content needs to be enriched, and consumer cost performance needs to be improved. The mature business model has not yet been established.
Different from the industry model where the hardware and software of the mobile phone industry chain can be separated, how to break through the double constraints of content and hardware experience, from the hardware device, operating system, content development, application to the distribution platform driving the whole industry chain to participate, become more lasting for VR giants The battle.
Tough battle starts from B end
“In the industry just in its first year of development, it would be very difficult if we depend on us to pull the entire industry. It needs more partners and more people in the industry chain to help promote this market.†At the 2017 Vive Eco-Conference Wang Congqing, president of HTCVive China, told reporters. In the two-day eco-conference, the application of ecosystems and verticals was emphasized repeatedly, and it was also considered as the key to VR from the B-side to the C-side.
During the period of time, HTC’s performance declined, executives left the company, and layoffs continued. HTC recently announced that it plans to sell the Shanghai mobile phone manufacturing plant for 630 million yuan. It was also interpreted by outsiders as “HTC will bet all virtual reality in the future. The factory sells blood for HTCVive."
In response, Bao Yongzhe, vice president of HTCVive’s new virtual reality technology department, responded, “The mobile phone business and VR business are two relatively independent departments. The closure of the factory is an asset activation consideration and has nothing to do with VR.†Wang Congqing laughed and said: “I Can only say some people's imagination is very rich.†Although the two clarified again that the two are not related, but from the ecological assembly of a series of moves, VR is an important chess piece after the HTC after the mobile phone era.
"New profit model, killer app, more natural interaction, better display effect, more integrated AI, lower computational efficiency, more economical and easy method positioning, faster network, better battery Storage technology, more convenient content creation tools." In Wang Congqing's view, these are both the challenges faced by VR and the opportunities for VR development.
From the perspective of market applications, limited by the above factors, VR's breakthrough in new commercialization is increasingly centering on B-side applications. Entertainment, education, and enterprise-level applications have first-mover advantages.
“This year's industry applications will show a rising trend and serve as another important channel for C-end penetration.†Tan Ying, chief analyst of GFK emerging smart hardware, told reporters. According to the “China VR Industry Application Research Report†published by GFK, the planners are more concentrated in various fields, with 60% of the planners designing entertainment/games, and the second place is education, accounting for 35%.
“Enterprise-level users are not so sensitive to price, and they value the improvement of team efficiency by a good product. Through the industry application, they can also bring more C-end users to understand the use of VR.†Wang Congqing said, “It's not a long-term task to implement hardware alone. "The adoption of industry application solutions is more conducive to driving hardware landing and development.
Sinking Road
As Wang Congqing said, “The entire VR industry is looking for new sources of income and distribution channels.†Developers as the most important part of VR ecology, how to make developers in the early market to make money, access to sustainable revenue model, relationship Participation and activity throughout the ecosystem.
From the perspective of the development of the Internet, advertising is the most important method. In the 2017 strategy, HTCVive proposes to open the VR Advertising SDK (Software Development Kit) to turn free or paid VR content into a revenue platform. For example, in-game props, badges, etc. can also be charged. According to industry practice, the platform will draw a 30% share from it.
And the other thing that enables developers to get revenue quickly is the experience store. "When a user group is still developing, these experience stores can bring some income to developers and it is a sustainable income. "However, Wang Congqing said that he does not want to rely on experience shops to make big money. The purpose of experiencing the store more directly is to tell the user in the fastest way what VR is.
Although the HTCVive experience in the industry has been highly regarded, it does not have an advantage in terms of price alone. HTCVive is currently priced at US$800, including a head-up and a pair of sports trackers. The sales price in China is 6,888 yuan. In order to expand the market, many manufacturers have taken steps to cut prices this year. For example, Samsung Gear360 dropped from 349 US dollars to 249 US dollars, OculusRift will also cut prices across the board, and the price of the handheld sensor and the whole set of handheld Sensors dropped from 798 US dollars to 598 US dollars.
Will HTC launch low-cost VR devices to increase market coverage? Unlike other vendors, HTCVive brings content developed by developers to different users and platforms to cover the low-end market.
For example, in the mobile VR market, HTCViveportM (mobile application distribution market) has signed cooperation agreements with six VR glasses box manufacturers, and plans to take platform content to tens of millions of users. Expanding the scope of arrival and arrival of content is the base of realisation, and hardware vendors can also cultivate potential consumer groups.
Needless to say, market education still has a long way to go. Although the hardware price is temporarily unchanged, HTCVive has made adjustments in software subscription services. For example, in Viveport, a new monthly subscription service is launched. Consumers can subscribe to 5 VR applications in the Viveport App Store at a very low price of 29.99 yuan/month. Will enjoy the first month of free preferential policies, according to reports in the past year, each user will spend about 100 yuan to buy products in one month.
In addition, HTC has also begun cooperation with the film giants, hand in Warner Brothers, around the virtual reality themed movie "Player 1" for exclusive strategic cooperation. Players One is directed by the famous director Steven Spielberg. Behind the generous cooperation is still the desire to educate the C-side market through cinema and home entertainment channels.
“The VR industry will continue to develop in 2017 and will not experience explosive growth for the time being.†Wang Congqing judged how to bring practical help to the industry after the baptism of 2015 and 2016. This is a realistic problem before the arrival of virtual reality.
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