VR market will be worth $50 billion by 2021

It seems that the now so young and prospering virtual reality industry is bound to succeed and grow in not so distant future, report says.

vr-market-projections

The console VR could lead the way to a massive expansion of virtual reality in the future. The PlayStation VR could be the one to push the way for this revolution to happen by giving households access to the new gaming platform even with little or no technical expertise.

Juniper Research released a new report with market analysis on the state of VR. They said that the VR hardware, like VR headsets, peripherals and 360 cameras, will be worth $50 billion by 2021. To put everything into perspective or just the speed of growth, Juniper sees the VR hardware revenues will hit $5 billion this year alone.

Growth from Gamers

We can safely say that these faster growth rate will come from gamers. PlayStation VR will be out on October 13 using the PlayStation 4 as its base platform. It is much cheaper at $400. Console VR is relatively cheaper than PC VR with Oculus Rift costing $600 and the HTC Vive with $800 price tags. The price for the new PlayStation VR could propel the virtual reality market up.

Juniper also sees that Console VR is a good sweet spot between Mobile VR and PC VR. Two of the industries’ most extremes. The Console VR experience is much better compared to Mobile VR (like Google Daydream) and also more affordable, in terms of hardware cost, than PC VR.

It is projected that Console VR will be 50% of the entire VR hardware revenues by 2021.

Consoles also have another benefit compared to PC VR, at least when it comes to publishers and developers setting prices.

Joe Crabtree, the research author emailing GamesBeat, said,

“Some of the most popular VR titles are currently priced much lower than traditional triple-A games, sometimes as low as half the price… In the several months since the launch of PC-based VR this year, consumer expectations are likely to have changed to expect shorter, cheaper games. When triple-A publishers release to PC, they may have trouble selling with traditional triple-A prices, while console users have no such habit to break.”

Good news for the people selling those games, but not so great for consumers.