Financial Analysis

Naturally, there are cheap alternatives like Google Cardboard, but to achieve an awesome experience on VR technology, good VR hardware cannot be ignored. The cost to the hardware is not a cost that can be underrated. Only the head-wear device may cost user hundreds of dollars. Though, due to the development of VR technology, the price of it will drop down gradually. The essential part to make profit should be the software and its corresponding content. With more and more customer paying close attention to the VR development, there will be no doubt a bright future for VR.

4.1. Market expectation

According to a report from analyst firm SuperData Research data show that until the end of 2016, VR product users will reach 3.89 million, while VR market is expected to reach $ 5.1 billion. It is expected that 2016 will be the first European market VR products will reach $ 1.9 billion, the size of the market in North America was $ 1.5 billion, followed by the Asia market will reach $ 1.1 billion, plus the above-mentioned areas Rest of the world $ 600 million, in 2016 the total market size of VR up to $ 5.1 billion. It is worth mentioning that in 2016 the market size of VR 7.7 times bigger than $ 660 million in 2015, the analysis also pointed out that in 2017 this figure will jump to $ 8.9 billion, while in 2018 will reach 123 billion. [11] According Manatt Digital Media released a report. In 2020, VR / AR market will reach $ 150 billion. CCS Insight predicts that by 2020, VR / AR equipment sales will reach 97 million units. [12]

4.2. Market situation

• The homogenization of serious

2014 I / O conference, Google launched a box called Cardboard, and since then, it has been found in domestic and overseas markets a variety of VR glasses. Products are numerous, but after reading it again it is difficult to impress, the most fundamental reason is that the VR glasses content is almost the same.

• • The lack of core competitiveness

Experience is bad. There is only appearance, not high-tech and even basic functional design has serious flaws.