Previously, I argued that you should look at the Q4-2016 VR sales figures closely and then make decisions about whether to jump in. Some figures are in. SuperData Research, a technology research firm, estimated that Oculus had sold 360,000 headsets and HTC 450,000 since their products went on sale in March and June, respectively. Both of those headsets require high-end PCs with powerful processors. The firm estimated that Sony, which began selling a virtual reality headset in October, has sold about 750,000. — NYtimes Jan 8/2017 Those aren’t encouraging install bases. Obligatory Gartner Hype Cycle image: Consolidation is a long ways off. Facebook, has deep pockets and can sustain a long chasm crossing. The legal issues with Zenimax are a distraction. This is[…]

A lot of what seems to be alarming news on the Virtual Reality front. Steam is reporting a 0.18% penetration on VR headsets. The gadget press is calling it a crashing halt. Or a nose dive. It’s interesting. Let’s reserve judgement. Google Trends suggests a summer lull in interest in VR. What happens in 2017/18 for VR really depends on what happens on the weekend of November 24 – Black Friday. If the demand from early adopters responds the way the supply side wants, we’re in for a roaring year of consolidation in the space. And we’ll be feeling the effects of that consolidation for a very long time. If you’re looking to make a long term bet on a[…]