Revitalizing the VR Industry: A New Playbook for Success

The recent unveiling of Apple's XR headset, Vision Pro, has sparked immense excitement and interest in the VR industry. Similarly, Meta's announcement of the Quest Pro has shed light on the vast potential of VR. Over the past two years, the industry has made significant strides in creating more immersive and engaging VR experiences, with early adopters witnessing tremendous growth since the release of the first Quest in 2019. However, despite the hype, the industry is still struggling to achieve mass VR adoption, with IDC reporting a 20.9% decline in VR sales in 2022. Furthermore, Meta executives have found that many owners use their headsets for only a short period, highlighting a clear engagement issue. Developers are still relying on the "if you build it, they will come" approach, but the growing disparity between hype and adoption suggests that the industry needs to reassess its strategy to achieve widespread adoption. To expand the market and drive broader adoption, I believe there are four key areas that need attention. Firstly, the lack of data is a significant challenge for developers. Major headset manufacturers like Meta, Sony, and Apple must prioritize providing comprehensive analytics to game developers, including accurate demographic information and engagement metrics. As a global leader in serving tailored content to billions of users, Meta has a unique opportunity to share its expertise with game developers. By providing access to user data, developers can create personalized experiences, make informed decisions about game design and marketing, and effectively reach their target audience. For instance, external data has revealed that VR's largest audience is between the ages of 18-24, which is significantly younger than what many developers initially believed. This insight has prompted developers to reconsider their game creation and moderation strategies. Another crucial aspect is hands-on experience. Many people are hesitant to try VR without first experiencing it themselves. Apple's upcoming headset, despite its hefty price tag, will have an advantage due to the immersive, tactile experiences it offers. Companies like Meta can also host mall installations, create pop-up shops, or partner with gyms to showcase VR use cases. Human connection is now largely virtual, with platforms like Instagram and BeReal facilitating social interactions. Meta has been a pioneer in this space, using Facebook to create fast networks of friends. However, VR still falls short in encouraging users to engage with their broader networks. To address this, it should be easier for users to find friends, see who is online, and schedule playtime together. Developers who leverage pre-existing social graphs will be more likely to succeed, as this connection is key to growing the user base and keeping users engaged. The final key area of improvement is expanding the pool of potential players and keeping them engaged. VR offers something for everyone, whether it's gaming, fitness, education, or exploration. However, there's a misconception that VR is only for gamers. To address this, developers and manufacturers should focus on making games accessible to people of all abilities, such as seated or one-handed play. Apple's Vision Pro, which relies on gestures instead of physical controllers, raises concerns about accessibility that need to be addressed. Moreover, player protection is essential to creating a welcoming and comfortable experience. Opt-in virtual barriers, flags for bad actors, and feedback loops can help maintain a safe environment. Better parental controls, such as requiring parental approval for friend requests, are also necessary to keep young players safe. Once player safety is addressed, the focus shifts to continued engagement. Building habits through tailored push notifications, alerts, and ongoing challenges can encourage users to return. Despite the progress made in the VR industry, there are still significant challenges to overcome. With the right approach and investments, VR gaming can reach its mainstream moment and unlock a world of limitless possibilities for gamers and non-gamers alike.