MTBS3D .@34bigthings developer of the sci-fi racing game REDOUT joins the @official_ita3d! #Redout #VR #VirtualRealityhttps://t.co/f31jVSkLWO
MTBS3D It's Always Sunny in Philadelphia goes #VR 360 tonight! @alwayssunny #SunnyFXX #VirtualRealityhttps://t.co/gk9mJcVoxo
MTBS3D On this week's show #Zenimax vs #Oculus verdict, and an interview with Tero Sarkkinen, Founder of @BasemarkLtd! #VRhttps://t.co/kbQHe39HI4
MTBS3D Judgement Served With a $500 Million Bill For Oculus. #Oculus #Facebook #ZeniMax #VR https://t.co/gKRTZ77K0a https://t.co/Dri0lGKysG
MTBS3D Bertrand Nepveu of @Vrvana talked with us about their latest HMD upgrades at @CES. #CES2017 #VR #AR #MixedRealityhttps://t.co/R6HEQL6Uw3
MTBS3D .@panasonic discussed their new 220 degree FOV VR HMD with us at @CES. #CES2017 #Panasonic #VR #VirtualRealityhttps://t.co/0PW67eaKIp
MTBS3D .@NGCodec is working on a cloud-based #VR platform. They showed us the potential at @CES. @OlyG #CES2017https://t.co/odlHIRIDZm
MTBS3D We interviewed @SamsungCanada's Chief Marketing Officer at @CES. #CES2017 #GearVR #Oculus #VR #VirtualRealityhttps://t.co/F2HKIiFw1L
MTBS3D We spoke w/@ImmerVision at @CES. They make 360 panamorph lenses for several leading 360 camera systems. #CES2017https://t.co/1hyfeHziTK
MTBS3D We spoke w/@ImmerVision at @CES. They make 360 panamorph lenses for several leading 360 camera systems. #CES2017https://t.co/age4LhRIvp
MTBS3D We spoke to Mark Childs, Chief Marketing Officer for @SamsungCanada at @CES. #CES2017 #GearVR #Oculus #VRhttps://t.co/wsb07lv6OP
MTBS3D We spoke to @kwikvr_sgx about their new tetherless #VR enabling prototype at @CES. #CES2017 #VirtualRealityhttps://t.co/4E6FjFtngQ
MTBS3D We interviewed @GoTouchVR at @CES about their new haptics device prototype for #VirtualReality devices. #CES2017https://t.co/gDHX3dVi48
MTBS3D RT @Robertsmania: Still freaks me out to see myself on videos... Do I really sound like that?!? #VR #SimRacing @MTBS3D #CES2017 https://t.…
MTBS3D We spoke with @htc at @CES about their new audio add-on for the @htcvive, Vive Port, #VR arcades & more! #CES2017https://t.co/dT7nfuGrAw
MTBS3D We spoke to @FibrumVR at @CES about their HMDs for mobile phones and growing ecosystem of games! #CES2017 #VRhttps://t.co/BShIoaqHZi
MTBS3D .@AMD spoke with us at @CES about the long awaited Vega GPU architecture coming up around the bend! #CES2017 #AMDhttps://t.co/pRCSkHHSfj

Less IS More in the PC VR Market

PC Gaming Hardware MarketEarlier this week, Jon Peddie Research announced three new market analysis reports detailing the PC Gaming Hardware make-up (PCs, peripherals, support hardware, etc.).  Arguably the most important headline of JPR's work is that for the firs time...ever...the PC gaming hardware market exceeded $30 billion.  That's a lot of dough!

Reflecting on this, we've been putting a lot of thought into virtual reality and the strategic importance of the PC market to virtual reality.  Ever since the realistic numbers of PC VR HMD sales were realized (primarily limited by Moore's Law and early adopter cost), we are witnessing a trend where the VR market is assuming that mobile is the way to go for mass market growth.  Yes, we agree that mobile has a mass market advantage.  However, it doesn't yet reflect the content that got the industry truly excited about virtual reality in the first place.  While it's promising and it's a way to get VR out there to a lot of people, it doesn't have the wow factor that PC had from the get-go; and consumers need to experience that wow factor for a long time to come.

In contrast, PC has a lot of room for growth and each sale is a very fruitful one.  So what if there are only about 300,000 in sales across all PC VR platforms (that's our estimate)?  Moore's Law is making upgrades more inexpensive with each passing year (provided the HMD makers don't increase the processing requirements), and this number will grow and grow provided the content is there and the marketing is handled properly.

Good PC content makers can charge more per game or experience than they ever would imagine on mobile.  Would developers rather be in a market surrounded by thousands of dirt cheap apps and experiences with their amazing stuff buried in there somewhere, or would they rather be a big fish in a smaller pond making a real premium on each sale in a growing market?  We'd go with the pond.

Finally, and this is from the point of view of the whole ecosystem, every VR sale is a good excuse for a new graphics card, an updated motherboard, new performance hardware, and more.  PC VR sales benefit the whole ecosystem and they offer the most rewarding experience for the end user.  Mobile VR sales primarily benefit the HMD seller and possibly the smartphone seller - and that's as far as their influence goes.  Yes, the mobile VR content maker has a bigger potential reach...and more competitors to contend with as well.

The moral of the story is that just because something is mass market doesn't mean it's profitable, and the VR mass market hasn't even been achieved yet.  With JPR Research's latest findings about the healthy growth of the PC gaming hardware market, we see potential for PC VR and a lot of it.  We just have to be realistic with the sales numbers and play the long game.