VR gaming dates right back to the early to mid 1990s, however, it’s unrecognizable when compared to the technology that is available today. Virtual reality gaming is all about making you feel immersed in a virtual world, differing from 2D monitors or 3D environments in that it’s fully interactive and you take a plunge into a brand new space.
It generates realistic sensations for the user and you can truly inhabit the virtual world that you’re in. It’s transformed gaming and although currently it’s not as widespread as the likes of the latest Xbox or PlayStation consoles, we suspect that a shift could be imminent. This being said, there are also drawbacks, particularly around security risks, that every VR gamer should be aware of.
We’re here to discuss all things VR gaming, who is leading the industry and how immersive entertainment is predicted to evolve moving forward.
Which Tech Companies Are Leading In VR Gaming?
Some of the world’s biggest tech companies are becoming major players in the world of VR gaming. The biggest currently, without a doubt, is Meta. After acquiring the company Oculus, which created and built VR headsets for $2 billion in 2014, this set Meta up with the highly complex tech that it needed to dominate in this industry. Also, according to Forbes, as of Q2 2023, Meta held a 50.2% market share in the industry, with the rest being split amongst Sony, ByteDance, PlayStation and Pico. The majority of our examples here are centered around Meta, as they are undoubtedly dominating.
Why Is VR Gaming Not Becoming A Widely Adopted Consumer Technology?
VR gaming is not currently a widely adopted form of consumer technology, and just to clarify, here we’re talking about head-mounted VR technology as opposed to the 2D versions. There is clearly demand for the VR gaming experience, with virtual reality arcade experiences in high demand, particularly in UK cities. For example, in Manchester, there are 4 different experiences available, from VR arcades to escape rooms, that are making VR gaming more accessible. However, in the US, whilst 46% of the US population has tried a form of VR headset experience, less than 10% own one. The uptake in the UK is similar, with around 6% of the UK population owning a VR headset, compared to 33% owning or having access to a gaming console.
Also, looking at the pricing component, while there are uncertainties in both global and national economies that could be causing people to hold back, in relation to other technologies, it’s not unattainable. Oculus Quest headsets sit between £200 and £400, compared to a PS5, which can be upwards of £400.
So, the demand is there; they’re competitively priced in the world of gaming, so where is the gap? One factor to consider is that, as this form of gaming isn’t widespread, the sense of community that you get with other options like PlayStation or PC games isn’t there yet. Of course, this is a vicious circle, as until more people buy the headsets, this sense of community or gaming with friends remotely won’t occur. According to Google’s Keyword Planner, searches for “metaverse” decreased by 64% comparing 2023 to 2022, and the marketing around Meta’s VR gaming experience was massively centered around what the metaverse had to offer. With general interest declining, whether as a result of less aggressive awareness campaigns, quite vague general definitions unless people do their own research or the potential risks that come with the metaverse (that we will move onto),
This being said, with the PS5 being released at the end of 2020, as well as the most recent Xbox, avid gamers may feel ready for a change. It will be interesting to see whether enough value is seen in VR gaming to push consumers to make that shift toward a new experience.
What Are The Opportunities?
In Meta’s general marketing of their VR headsets, and we’re focusing on Meta here as we know that they are driving the market, it’s quite vague. Most people have heard of their headsets and know that they create a virtual environment for gaming, but not much more. However, if people were to go away and do their own research, they’d see the incredible opportunities that come with VR gaming, including but not limited to:
- Stream shows, including on Netflix, in a virtual theatre simulator in HD resolution
- Socialise and meet people within the metaverse, sitting in a digital cafe with your friends or making new connections, as well as attending live music shows
- Learn new skills in metaverse Learning, from bricklaying to carpentry, language skills to engineering, cooking to cybersecurity and everything in between
- Visit virtual art galleries, whether it's NFTs or actual art galleries
- Gaming is, of course, the obvious use of this form of VR, from solo gaming to multiplayer games. These are all in The Sandbox, with well-known games including Minecraft and Red Dead Redemption, as well as brand-new experiences that are ideally suited to virtual worlds
- Shop within the metaverse, with your avatar walking around shops, trying on items and then making payments in Bitcoin, either for your avatar or real-life items that will later be delivered to you
- Travel around the world virtually, exploring new places that you’re curious about, especially useful if you’re stuck between choosing your next holiday location
What Are The Drawbacks?
So, we already know that cost isn’t particularly a major factor when it comes to the drawbacks of VR gaming; it seems to be more so the reduced demand that is resulting in a lack of community feel that other forms of gaming offer. However, one major drawback we haven’t discussed yet is the security concerns that come with VR gaming, specifically in the metaverse. In a survey, 62% of respondents were concerned about fraud within the platform as well as the inability to distinguish between truth and falsehood. 61% also reported that privacy and personal information concerns were a challenge to wanting to actively engage in VR gaming.
As with any online environment, scams are undoubtedly a risk. There have been reports that the metaverse has produced a breeding ground for cybercriminals, and whilst many users do take the time to make themselves aware of the common scams and understand that giving away sensitive information or engaging with unsolicited investment opportunities through the platform would definitely not be advised, 83.5% of metaverse virtual world users are under 18, making them vulnerable to the likes of crypto scams, NFT scams, fraudulent agents and phishing scams. Often the social element of the platform is manipulated in order to carry out complex social engineering scams, too. For example, a digital token inspired by Squid Game was pitched as a play-to-earn metaverse game, which soon turned out to be a complete scam with its value being lost instantly, with the developers/fraudsters of $SQUID making off with $3.38m of investments.
Whilst investing is a possibility through the metaverse, a lack of regulation remains in the metaverse, making it easy for fraudsters to target people and carry out their schemes. If you’re ever approached within the metaverse with an investment opportunity, be extremely cautious about progressing. Flashy online marketing can be very convincing, but it’s key that you look past it, never share personal information and never give into emotional manipulation and remember that within the metaverse. It’s very easy to get carried away in virtual environments, and with VR gaming platforms offering much more than just games, being aware of the drawbacks of utilizing these platforms is key to keeping yourself, your information and your money safe.
