![\"VRChat\"](\"https:\/\/www.dfcint.com\/dossier\/wp-content\/uploads\/2019\/05\/everybodysgolf.jpg\")
<\/p>\nVirtual reality was all the rage in 2016.\u00a0 New systems were launching, and the media was describing VR as the next big thing.\u00a0 The actual reality hit pretty quickly, and the noise died down.\u00a0 However, now there are finally signs that mass market interest in VR is starting to increase.\u00a0 Leading the way is the VRChat application.<\/p>\n
In 2016, Facebook launched the Oculus Rift, HTC launched the Vive and Sony launched the PlayStation 4 VR system. \u00a0DFC Intelligence was seen as the pessimists because of our modest forecast for the new VR systems.\u00a0 At the time we forecasted that the PSVR would be the leading system with 500,000 units sold in 2016.<\/p>\n
As we flash forward to 2019, Facebook is keeping at with the newly launched Oculus Quest.\u00a0 Meanwhile, Sony recently announced the PlayStation VR has sold over 4 million units.\u00a0 That makes it the leading high-end VR system.\u00a0 However, 4 million after 3 years is a small platform for software developers.\u00a0 Those are definitely not the kind of numbers you need for investing in developing the type of high-end game VR needs to thrive.<\/p>\n
Sony is the big driver of PSVR software development.\u00a0 Last week they released Everybody\u2019s Golf for PSVR at $30.\u00a0 This is a VR version of Sony\u2019s popular anime golf series that started for the original PlayStation in 1997 (under the name Hot Shots Golf in North America).<\/p>\n
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Everybody\u2019s Golf for PSVR is a great example of both the pros and cons of the PSVR.\u00a0 This is definitely one of the games to show your friends. \u00a0It is fun to play, and the visuals are immersive.\u00a0 Although nothing like simulating real golf, it is really a challenge to master.<\/p>\n
On the downside, this game is hampered by controls.\u00a0 The title plays best with the old Move controllers which launched way back in 2010.\u00a0 Prices vary significantly but you can now get a PSVR for just a little over $200 but the Move controllers generally add $100 to the package.<\/p>\n
The other big new VR game from Sony is Blood & Truth launching this week.\u00a0 This is an action crime game based in London.\u00a0 It is along the lines of The Getaway, a popular 2002 PlayStation 2 game developed by the same London Studio.<\/p>\n
![\"VRChat\"](\"https:\/\/www.dfcint.com\/dossier\/wp-content\/uploads\/2019\/05\/bloodtruth.jpg\")
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Games like Everybody\u2019s Golf and Blood & Truth are examples of solid VR titles.\u00a0 However, very few people will actually see these products.\u00a0 The reality is they are doing little to drive VR to the masses.<\/p>\n
What is driving significant interest in VR is the free open world VRChat.\u00a0 VRChat is not even a game, it is basically an old-fashioned chatroom with 3D avatars.\u00a0 It is a social platform and VRChat has released its own SDK for users to create their own places and mini-games.<\/p>\n
VRChat has definitely hit the buzz level among the younger mass market.\u00a0 Most of never played the game using a VR system.\u00a0 In many cases, users have never even played VRChat.\u00a0 The awareness comes from watching videos of other users on YouTube or Twitch.<\/p>\n
The new Oculus Quest system is a $400 standalone VR device that looks fairly compelling.\u00a0 A key selling feature is there are no wires or clunky controllers.\u00a0 It will run VRChat and other Oculus enabled games.\u00a0 However, it appears VRChat worlds will require a special Quest optimized version.\u00a0 Once again Quest is a solid hardware system limited by lack of unique software and a consumer focus.<\/p>\n
![\"VRChat\"](\"https:\/\/www.dfcint.com\/dossier\/wp-content\/uploads\/2019\/05\/oculusquest.jpg\")
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VRChat is a market driver because it effectively builds a desire for consumers to buy new hardware.\u00a0 The only other mass driver we have seen in this space is Pokemon Go.\u00a0 Pokemon Go is an augmented reality (AR) game that hit in mid-2016 along with the expensive new VR systems.<\/p>\n
Pokemon Go soared to success because it was free and worked on basic mobile devices.\u00a0 There was no need for expensive new hardware.\u00a0 Some companies like Microsoft are betting that AR will be just as big, or bigger, than VR.<\/p>\n
Microsoft may have the next big market driver for the VR\/AR space with Minecraft Earth.\u00a0 As we discussed recently, Microsoft has really brought Minecraft back in recent months.\u00a0 For the games tenth anniversary, they announced the Minecraft Earth AR game.<\/p>\n
It is still early, but Minecraft Earth has huge potential.\u00a0 It has the same advantages of Pokemon Go.\u00a0 It is free, works on multiple devices and is based on a very popular franchise.\u00a0 If the gameplay is compelling it is likely to be a huge hit.<\/p>\n
PlayStation VR and games like Everybody\u2019s Golf and Blood & Truth are the current reality of VR.\u00a0 They are fun to play but have a limited market impact. Products like VRChat, Pokemon Go and Minecraft Earth are the ones driving VR and AR in the public perception.<\/p>\n
DFC recently released its recent forecast for PC game hardware where it was estimated that consumer spending would reach $70 billion by 2023.\u00a0 The need for high-end systems to play VR and other products is a key driver of this spending.\u00a0 It is a slow build, but it is happening now.<\/p>\n
Virtual reality analysis are part of the DFC Intelligence PC Game Service as well as standalone reports and forecasts.\u00a0\u00a0The new PC Game Hardware Forecast report<\/a>\u00a0is part of a series of reports that look at the PC game market from several perspectives. It is also part of the video game industry segmentation series that sizes the video game market from both a supplier and a consumer demand perspective.<\/p>\n For an initial look at the industry from a supplier perspective, we urge you to check out the segmentation that DFC Intelligence did in conjunction with Venture Beat and Atlas Technology Group. It is available on the Venture Beat website<\/a>. This segmentation lists the major companies in each industry segment.<\/p>\n