Last week's Apple Fall conference captured the attention of VR/AR (Virtual Reality/Augmented Reality) professionals. During the event, Apple highlighted that both the iPhone 8 and iPhone X are optimized for mobile AR, positioning them as key platforms for future AR experiences. This means that iPhone users will soon be able to access AR features, making them a significant part of the growing AR industry.
After the introduction of AR hardware, an increasing number of applications can now be accessed anytime, accelerating the arrival of the AR era. However, unlike AR, VR has not enjoyed the same level of success. Following the so-called "VR boom" in 2016, the industry has seen a slowdown this year. Even in the gaming sector, where VR integration was expected to thrive, the adoption rate among players remains low.
One of the main challenges facing the VR industry is its high entry barrier. Most high-end VR systems, such as the Oculus Rift and HTC Vive, require powerful PCs, which limits their accessibility. Sony’s PS VR, on the other hand, operates on the PS4, offering a more affordable and user-friendly option. According to data from June, Sony’s PS VR had sold over 1 million units globally. While this seems impressive, it represents only about 1.6% of the total PS4 user base of 60 million.
Dong Xiaolei, director of CIC Fuzzi Consulting, explained that PS VR’s success lies in its lower threshold. Unlike PC-based VR, PS VR only requires a PS4 and an additional VR headset, making it more accessible to existing users. Additionally, strong game support encourages PS4 owners to try VR. Despite this, the market still faces challenges, including high costs and limited content.
Currently, PC-based VR devices often cost over 2,000 yuan, with high-end models reaching up to 10,000 yuan. Dong believes this is due to an immature ecosystem, where demand is still low, and scale production hasn't been achieved yet. However, he expects prices to drop over time as the market grows.
In terms of content, Dong emphasized that for big companies, hardware is just the foundation, while content distribution is key to long-term profitability. Both aspects are essential for the industry’s growth.
Regarding the idea that adult entertainment could boost VR, Dong clarified that China does not have a rating system for films, music, or games. As a result, adult content cannot be freely distributed until such a system is in place. He stressed that the VR industry in China should not rely on adult content to grow.
On the other hand, AR is gaining traction. Unlike VR, which has struggled with comfort and usability, AR is becoming more appealing. At Apple’s WWDC conference, the company launched ARKit, a platform that allows developers to create AR apps using Unity, Unreal, and SceneKit. With the release of the iPhone X, AR is moving closer to mainstream adoption.
According to Dongxing Securities, by the end of 2017, there could be 580 million ARKit-compatible devices worldwide. If even 25% of these users adopt AR, that would mean 145 million active AR users by the end of the year.
The Wall Street Journal reported that Apple is working hard to bring AR into everyday use. New hardware and software updates are expected to make it easier for users to shop virtually, play games, and stream videos in their living rooms.
Overall, while VR faces challenges, AR is showing strong potential, thanks to Apple’s push and the growing availability of AR-compatible devices. The future of AR looks bright, and its impact on daily life is likely to grow significantly in the coming years.
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