The virtual reality space is a fast growing market. Due to the potential of the market, the competition in the sector is growing rapidly.
With the fuss surrounding Vive, Rift, and Samsung's (SSNLF, Financial) Gear VR smartphone device, among others, Horizon Media took a survey from around 3,000 U.S. adults regarding virtual reality. According to the survey, two-thirds of customers are unaware of the virtual reality technology. That is a shockingly large portion of the population unaware of virtual reality, keeping in mind the amount of press it has received.
This two-thirds of the population could signify a marketing prospect for virtual reality vendors, but it also shows how virtual reality has gotten more media consideration than customer attention. However, the absence of virtual reality information among customers has not stopped industry specialists from predicting explosive growth.
According to analyst estimate, the virtual reality market will reach $30 billion in the next five years. Not all estimates are as high, but they still anticipate virtual reality will turn into a multibillion-dollar segment by 2019.
One thing that is similar among the market estimates is that virtual reality is at least a few years away from actually reaching his stride.
Sony’s PS VR
Sony (SNE, Financial) is on its way to introduce the PS VR as the most reasonable option at only $399 equated to the HTC Vive and Oculus Rift for $799 and $599. The PS VR will need a PS Move camera peripheral and a PS4 console to operate.
Sony expects the PS VR hardware to be an efficient and profitable product. The company is foreseeing substantial software support of the PS VR with an anticipation of more than 50 titles offered for the platform by the end of this year.
Sony’s PS VR will also support all existing PS4 games and supported movies in a cinema mode, which imitates a 200-plus inch screen in front of the consumer’s face. This screen can also be used to connect with PS4 as an output monitor.
Conclusion
To gain an early mover's advantage in the virtual reality space, it is important for any company to come up with cheaper products. Given the untapped potential of the market, I think Sony has taken the right steps to gain an advantage. Although other VR technologies are more popular right now, I think Sony is a company that investors should be betting on.
Disclosure: I don't hold a position in any of the stocks mentioned in the article.
