Home Entertainment VR-specific games revenue will reach US$8.2b by 2023: study
VR-specific games revenue will reach US$8.2b by 2023: study Pixabay

Revenue from virtual reality-specific games will touch US$8.2 billion by 2023, the research firm Juniper Research claims, from a figure of US$1.2 billion this year.

The year 2018 was a disappointing year for sales of VR hardware, Juniper said, adding that the development of VR content for smartphones would be necessary to increase the level of consumer confidence in the technology across all platforms.

The company predicted that more than 100 million mobile VR devices, including smartphone and standalone headsets, would have access to games around the world by 2023.

This was off the back of 52 million devices accessing such content in 2019.

The claims were made in a study titled Virtual Reality Markets: Innovation, Disruption & Future Prospects 2019-2023.

It said that mobile VR would account for more than half the total VR games by 2023.

Research author Sam Barker said: “Revenues from VR-specific mobile games will exceed US$4.6 billion by 2023. However, average revenue per mobile VR games user will be the lowest of all VR platforms. In response, app developers must mitigate high app abandonment rates by providing engaging and continually-updated content”.

The study forecast that over half the mobile VR games accessed in 2019 would not be monetised due to the difficulty of implementing advertising in VR content without impeding the user experience, adding that app developers would have to leverage in-app purchases to recover this shortfall in potential advertising revenue.

It said that maintaining growth levels of VR hardware sales could only happen if a profitable VR content market was created.

"Juniper has identified 2023 as the year in which VR content revenues, including games, multimedia, gambling and others, will surpass hardware revenues for the first time," the company said.

It recommended that VR headset vendors focus on increasing their VR content libraries through app store partnerships to capitalise on the anticipated growth of VR users.

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the sitecame into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

 

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