VR Revenue in China to Triple This Year
VR revenue and that of its related products are expected to triple this year in China in contrast to last year’s revenue; however, rapidly increasing tech sector requires considerable development as regards content creation and user experience.
An expanding community of companies, including big and small firms, are working quickly in order to make VR a household item, new research by Xinhua News Agency and China Electronics Standard Institute says.
The research states that in 2015 China’s VR market was worth 1.54 billion yuan (valued at $236 million). This VR revenue is believed to rise above 5 billion yuan by the end of 2016.
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How VR Revenue Started Increasing in Chinese Market
About a dozen of China’s top VR companies at this year’s Consumer Electronic Show Asia in Shangai gathered to display their newest VR products such as glasses, headsets, and associated content display gizmos.
“Most VR products now focus on entertainment systems, which offer video game players vivid images and feelings that enhance their entertainment experiences,” said Jiang Li, a sales manager at Pico Inc., a Beijing-based VR hardware and software provider company.
Another splendid information for users is the drop in the prices of regular VR merchandise as innovations grow and more companies join the fracas, thereby toughening the competition, according to companies at the event.
“Glasses that help users watch VR content displayed on their own smartphones or televisions cost less than 300 yuan, while headsets with integrated displayers and audio systems cost no more than 4,000 yuan, which are both around 30 percent lower than last year,” Lin Jinfu, a VR product trader with Xiamen-based Shimao Game and Entertainment Ltd told China Daily.
A lot of callers at the event expressed dissatisfaction in that they had to stand on a line for nearly 30 minutes to participate in a demonstration that lasts for only two minutes, they also expressed disappointment at the contents displayed saying the anticipated better.
“I experienced five trials at three different exhibitors, and almost all were about games science,” said Wang Zhihao, a 21-year-old student. “It is not really the virtual reality that I had expected, because these are not the kinds of images I am waiting to experience.”
Zhihao continued, “I was hoping for something different, such as a tour of an exotic destination or something that is hard to find in reality. These kinds of shows have to try harder to offer something different,” said Wang.
Alfred Zhou, general manager of GfK China, a market research and consultancy services provider, complimentarily stated that developers of VR products need to enhance their consumer experiences through addition of more innovation to both software and hardware packages.
“It is estimated 1.5 million hardware sets will be sold in China in 2016, so we really need to pay attention to what they offer and how they are likely to be used,” said Zhou. “Software and hardware developers should expand, not only in how they serve consumers, but also how they market and brand certain products. Customer service will become an important pillar of the VR market growth.”