Nine Ways Sluggish Economy Changed My Outlook On VR Games

Throughout the previous few years, we have seen a plethora of news articles about the way virtual reality was about to save the classic arcade. The idea goes that the VR equipment is too expensive for home users, so it creates an opportunity for operators to pony up the big bucks to purchase it and make their money back by charging a match to play with it.
"While several high-end cans were released last year which can bring virtual-reality adventures to your living room, adoption of this technology remains in its first days to get a bunch of reasons--it is still bulky, pricey, and there is not all that much to do as soon as you've got it on your face. Over two million cans were shipped globally in 2016, according to a quote from market researcher Canalys, but this figure pales in comparison to the prevalence of, say, video game consoles (earnings of the leading one, Sony's PS4, topped six million throughout the 2016 holiday season ). Consumer virtual reality will likely catch on as prices come down and headsets improve. In the meantime, though, a variety of companies are betting that consumers may be pleased to cover a much smaller amount to try out the technology with their friends at, say, an arcade, theme park, or bowling alley."
It is tempting to fall into this trap, but in the operator's standpoint VR is a terrible deal. Operators are being asked to pay top dollar for https://www.amusementcity.net/ tech that's all but guaranteed to plummet in value within the very short term. Aside from buying a brand new car and driving it a time, I can not think about a way you could eliminate money faster between what you pay and what you will have the ability to get for it down the street.
Another limit for operators is that while you might be able to supply a space for VR individuals to roam around in now, as fresh VR tech is unveiled, we're going to find the stage expanded from 100 square feet into the whole world. Instead of viewing just the matches in your headset, you will realize the real world with sport play overlayed. Children can go to the park and relive the knights of the round table or parking garages to shoot aliens. Since the technology allows more real world areas to be explored, it's going to earn a cramped arcade seem pretty lame in comparison.
VR is heading for mass market acceptance, however it is demand isn't being driven by gamers who wish to pay big buck to play with video games, but like the BETAMAX that came before it, by individuals who wish to watch porn in their homes.
Even when an operator can create a little bit of money for the next few decades, after VR achieves critical mass, then it will crush whatever earnings stream that operators're dreaming of. Don't believe me? Just check out what is going on in China.
Last year, an eye popping 35,000 virtual reality arcades opened in China. A year after 22,000 of these have closed.
This is an unbelievable failure rate over this brief period of time and one which should serve as a sharp warning to anyone considering investing in the VR games. Perhaps Dave and Busters is able to take losses on the matches longer than Chinese startup arcades, however I doubt most North American operators will fare far better using the technology in their match rooms and will just wind up in debt in the close of the day.
The problem basically boils down to customers not being prepared to pay a premium to the experience. Tech In Asia, describes the issue perfectly in their article, on the Chinese VR boom and bust.

"Enterprising store owners jumped into VR are finding it impossible to charge fees akin to cinemas or bowling alleys to get a VR experience. 1 VR arcade proprietor told iHeima he saw eager queues when charging US$1.50 for a 30-minute session, but everyone disappeared when it climbed to US$5. By that kind of revenue it's impossible to pay the lease."
Even if the match was sold out all day, at $1.50 per half hour they are only earning $30 per day.
The real world information flowing in from China must serve as a canary in the quarter plantations of North America. Operators who spend large amounts of money on elaborate VR setups will probably find their little VR rooms being replaced by the whole world as a stage. As the installations get more expensive, smaller and more portable, the digital arcades will seem more costly, bulky and restricted. I'd love to be proven wrong on this one, but I think that the arcade VR fad is more hype than hope.