Entrance to the Metaverse: The VR Rivers and Lakes of “Fighting for the Deer”

See how domestic and foreign giants are deployed

Since the introduction of the Oculus Rift in 2012, the VR (virtual reality) product boom has re-emerged, and “the first year of VR” has appeared in the headlines of media articles almost every year. Although the current VR industry has not reached the “eve of the outbreak”, the pace tends to be steady, and there are obvious signs of recovery.

According to IDC data, the global VR headset shipments will reach 10.95 million units in 2021, a year-on-year increase of 97.1%. In the first half of 2022, a total of 172 financing mergers and acquisitions occurred in the global XR (extended reality, including AR, VR, MR) field, with a total investment and financing of 31.26 billion yuan, a year-on-year increase of 37%.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

Figure | Tianyancha

Soochow Securities expects a number of blockbuster VR products to be released in the next year, which will further stimulate the growth of the VR market. Meta Cambria (Quest pro), Pico 4/4 Pro series, Sony PS VR 2, etc. are expected to be mass-produced and shipped within this year , Quest 3 and Apple MR products are expected in 2023.

Although the VR equipment under the existing technology has not yet realized the scenes in “Ready Player One” and Cyberpunk, with the gradual decline of global mobile phone sales, mobile phones are no longer a point of interest for people to chase. At the same time, major VR manufacturers continue to release new products and superimpose the rich application scenarios of VR, making this track show a situation of “championship”.

01 Meta who does not want to wake up from the “Metaverse dream”

2021 is the consumer-level inflection point of the VR industry. The sales volume of Meta’s Oculus series products exceeded 10 million, which is a landmark event in the industry. In 22Q1, the global market share of Oculus series products has reached more than 90%, leading the market share.However, laying out the Metaverse has also cost Mark Zuckerberg dearly in the real world.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

As a technology giant in the U.S. stock market, Meta Platforms was once a star stock in the U.S. stock market, with a total market value close to a trillion dollars. As Meta shifts its focus to the Metaverse, public companies have also adopted a strategy of renaming and even changing the code of public companies.

After the name change, Meta has not been favored by market funds. As of September 20, Meta has fallen by more than 55% this year, and its total market value has also fallen sharply from a market value of nearly a trillion dollars to a market value of less than $400 billion.

Meta’s betting on the Metaverse was originally full of imagination, but unfortunately, the high R&D cost and long R&D cycle, and it is not possible to see returns in a short period of time.

According to the latest financial report, Meta’s VR division Reality Labs has continued to lose money, with revenue of $452 million in the second quarter of 2022, up from $305 million in the first quarter of 2021. Meanwhile, the unit cost a whopping $3.3 billion, up from $2.7 billion in the first quarter of 2021.As a result, the segment lost $2.8 billion, also higher than the $2.4 billion in the first quarter of 2021.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

Figure | Meta VR division Reality Labs

The industry believes that Meta was selling its VR products at a “loss” before, taking advantage of price advantages to gain a higher market share . However, when the core business is sluggish, Meta may adjust the price subsidy policy of VR products, so as to make its VR products more affordable. Product shipments are affected.

At the same time, at the VR content level, compared to large-scale virtual platforms such as Roblox, Fortnite, and Minecraft, Oculus’ user base, revenue, developer support, developer revenue, and cultural influence are far from enough. The future development is not easy.

In addition to its own business problems, Meta’s biggest challenge is that Apple and Google also plan to seize the head-mounted display market, leaving Meta’s time may be running out. Apart from these two giants, ByteDance also makes Meta feel very strong. the “chill”

02 Declaring war on Meta, what’s left of bytes?

The top VR brand in China is Pico. In August last year, ByteDance acquired Pico for a high price of 9 billion, and then Pico developed rapidly, maintaining the first share of China’s VR market. Pico is also the only VR brand with an increase in global market share besides Oculus. The market share of local brands will increase from 38% in the fourth quarter of 2021 to 70% in the second quarter of 2022; the global market share will increase from the third in 2021. 0.99% in the first quarter increased to 11.16% in the second quarter of 2022.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

At present, Pico is catching up with Meta with its byte ecology, human resources, and marketing system. Both Byte and Meta entered the VR industry through acquisitions, built their own content distribution platforms, and integrated them into their own ecosystems, while Meta is stronger than social media, and Byte is better than short videos. advantage.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

Oculus series products have gone through three product form periods: PC VR, VR all-in-one and 6DoF all-in-one. The 6DoF VR all-in-one represented by Quest2 has become the mainstream form of current VR headsets. content, etc. quickly open up the market.

The hardware performance and technical strength of Pico Neo3 are comparable to Quest2, and even better than Quest in terms of screen resolution, field of view, battery capacity, etc. Pico also enjoys price and domestic market advantages under the same product experience.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

Figure | Pico

From the perspective of new products, the upcoming Pico4 is the first time Pico competes with the Quest brand after it was incorporated into the byte ecosystem. The biggest highlight is that both of them will use the pancake optical solution.

In addition, Guosen Securities also mentioned that the root cause of the gap between the two VR ecosystems is content.

Although both Quest and Pico can stream into Steam, Meta’s own content platforms include the Quest Store, the relatively open source APP Lab, and the ecological supplement SideQuest. In contrast, the Pico Store content is dominated by external acquisitions, and its development is still in its early stages.

However, Guosen Securities also believes that Quest is mainly stronger than games, and Pico is expected to use video corners to overtake.

At present, the mainstream VR content platforms mainly include Steam, Oculus, Pico, and Viveport.According to Pico’s official website statistics, Pico’s VR content ecosystem has 213 types of content, including 162 games, 76% of which are VR games, and 51 other VR applications.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

Figure | Pico Play Store

Compared with the Oculus Quest official website store, there are a total of 383 VR content on the shelves, and in the past few years, the content launch speed of the Oculus Quest platform has maintained a year-on-year growth rate of more than 30%.

Compared with Pico, Oculus continues the development path of traditional game console manufacturers.

On the one hand, it stems from the strong PC console game soil in the United States, and on the other hand, it is due to the Quest-friendly developer ecology-effective content screening strategy, acquisition of leading VR game teams, and emphasis on long-tail content applications.

Based on the gene of byte algorithm and content, on the one hand, Pico’s VR live broadcast has an excellent performance out of the circle, and on the other hand, Pico has released the “Creator Incentive Plan” to support content production companies, technical parties and creators. In the long run, Pico Video is expected to be the leader in live VR video streaming. At the same time, Pico is also getting closer to the pan-entertainment itself that the public expects, such as VR movies, concerts, sports events and other content are also on the shelves.

03 Sony’s VR “ambition”

PlayStation VR is a VR product developed by Sony Interactive Entertainment. Released in October 2016, PS VR has sold 11 million units worldwide as of December 2021.

Not long ago, Sony announced on multiple social media that the virtual reality headset “PlayStationVR2” will be released early next year. When VR2 is officially released, Sony will also prepare more than 20 large-scale virtual reality games.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

Figure | PS VR2

Unlike Meta, Byte and other headset manufacturers, Sony took the lead in grabbing games, the most promising application track, with PSVR. For now, Meta’s headsets prefer to focus on the Metaverse, while Byte’s headsets may focus on video and content. Sony VR hardware is an extension of the game console PS. It forms a differentiated user positioning with mainstream VR hardware, and superimposes the advantages of high-quality exclusive game content. The market share and sales of PS VR continue to grow.

No matter what the initial price of PSVR2 is, it will make PS VR players pay for it, and in the “service” period of 2 to 4 years, this device will continue to promote the progress of PSVR games.

In addition, Sony has a large amount of high-quality content in games, music, film and television, etc., and can also increase the value of these high-quality IPs in the Metaverse.

In terms of games, Sony has built a series of products with PS games and hardware as the core, and occupies an important industry position in the field of console games. In terms of music, Sony Music Group has many top singers and musicians around the world, such as Michael Jackson, westlife, Miley Cyrus, Avril Lavigne, Britney, Beyonce, etc.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

Figure | Sony Music

In terms of film and television, Sony has successively acquired Columbia Film Group Corporation and MGM Studios, and has since developed into a leading film and television company in the world. It owns classic films such as Spider-Man, Men in Black, Peter Rabbit, Animation IP. Backed by a huge library of high-quality content resources, Sony is expected to play an important role in the content supply of the Metaverse.

Sony President Kenichiro Yoshida once said that with the help of the Metaverse, entertainment methods such as games, movies, and music can be expanded, and the market is expected to expand further. In addition, sensors are also being considered to capture and reproduce the movements of players in the stadium, so that spectators can watch the game from their preferred angle.

However, for Sony, PSVR 2 is by no means the end of its layout in the VR field – after all, the sales of peripheral products are always inferior to the console itself. In a sense, in order for VR to fully realize its value, VR products cannot only be positioned as an accessory to the host.

In the future, Sony may consider developing a standalone VR headset that is not inherently related to the PlayStation brand. This isn’t unfounded speculation: Back in August 2020, Sony Group posted a job posting to develop a VR headset “to be released in about five years.” In the future, Sony’s real ambitions for VR are likely not limited to enhancing the PlayStation brand.

04 The hardware growth rate is very fast, but the content ecology has not kept up

In the face of VR market opportunities, the layout of the VR industry by most domestic manufacturers mainly focuses on optical components, display and components, mechanical components and other components, batteries and other links, among which more representative companies includeGoertek. , Sanli Spectrum , United Optoelectronics , etc.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

Figure | “Science and Technology Innovation Board Daily” VR equipment hardware manufacturers

Goertek, the domestic VR leader, said in an institutional survey that acousto-optics, display, and structural components are the company’s core technologies for a long time, and are very important for XR track, optics and display, and the company will focus on the direction of the Metaverse industry.

Sanlipu, a leading domestic polarizer company, once said that the company has been researching and developing VR products for more than a year, and the product certification work is nearing completion. At the same time, the corresponding production equipment has been purchased, and it is currently being installed and debugged. It is expected to achieve small batch supply in the second half of the year. goods. Sanlipu said on the investor interactive platform a few days ago that the company has relevant technical reserves in the field of Pancake optical film products.

United Optoelectronics is investing in Da Peng and Xiaopai to advance the VR field. Both of them have become the leading VR companies in China. In 2021, the company’s AR/VR shipments will reach nearly 50,000 units. A number of domestic AR/VR companies such as Pai, Liangliang Vision , and Nader have reached in-depth cooperation.

At the content level, with the development of VR hardware technology, the core elements of hardware penetration rate improvement have turned to the emergence of popular content and the implementation of new business scenarios. Specifically, the current consumer-level VR application scenarios are gradually covering social, office, entertainment and other C-side application scenarios.According to data from the Prospective Industry Research Institute, in 2021, the market for pan-entertainment consumer applications such as VR games and videos will account for about 52%, which is currently the main content application field of VR.

Entrance to the Metaverse: The VR Rivers and Lakes of "Fighting for the Deer"

Figure | Financial Associated Press: VR equipment content provider

Haitong Securities Research Report shows that the domestic application ecology represented by Pico is still in the early stage of development. Under the circumstance that content is relatively scarce in the period of rapid upload of new platforms, the possibility of high-quality content becoming a hit has greatly increased, while traditional content developers It is expected to take the first step to obtain industry dividends.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/entrance-to-the-metaverse-the-vr-rivers-and-lakes-of-fighting-for-the-deer/
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