VIRTUAL REALITY

SESSION 6
TECHNOLOGY VARIATIONS

Virtual Reality Augmented Reality Merged/Mixed Reality

VR , AR & MR

¡ Virtual Reality : This is the generalized term for any type of experience that essentially places the user “in”
another world or dimension. It may be used in reference to entirely digital worlds, or worlds that incorporate a
mix of real and virtual
¡ Augmented Reality : This is a term for basically placing content “into” the real world by way of, using your camera
on your iPhone.
¡ Merged/Mixed reality : This is a combination of real content, and digital content that sometimes consists of, for
instance, two types of video essentially layered over each other.
How is AR different from MR?
¡ In MR, the virtual and real things interact with each other.
VIRTUAL REALITY

¡ This is the generalized term for

any type of experience that
essentially places the user “in”
another world or dimension.
¡ It may be used in reference to
entirely digital worlds, or
worlds that incorporate a mix
of real and virtual
AUGMENTED
REALITY

¡ Placing content “into” the real

world by way of, for instance,
using your phone camera
MERGED/MIXED
REALITY

¡ This is a combination of real

content, and digital content that
sometimes consists of, for
instance, two types of video
essentially layered over each other.
¡ The virtual and real things interact
with each other.
OTHER APPLICATIONS

¡ New York Times: A couple of years ago, the New York Times delivered Google Cardboard glasses to all of their
subscribers in order to watch a VR film and then did it a few times over with different films

¡ The Outdoor Niche: The North Face offered participants an opportunity to hike through Yosemite National Park
as well as Nepal.

¡ The Home Improvement Niche: Lowe’s home improvement store set up a virtual reality initiative that allows
customers into a Holoroom to help them see what their house will look like after desired home improvements.
VR JOURNEY

¡ 1987 : Existed as a concept

¡ Continuous improvement in screen resolution, computing capacity and networking speeds
¡ Capability of creating high-definition renderings at low ‘latency’ (delay between instruction for data transfer and completion
of transfer)
¡ Phenomenon of ‘presence’
1995: MAINSTREAM MARKET LAUNCH
AS NINTENDO’S VIRTUAL BOY

¡ Did not succeed

¡ Low resolution (384 X 224 pixels)
¡ Only Black and red colors
¡ Lack of presence
2012: OCULUS VR
HEADSET

¡ 10 person startup
¡ Launched a Kickstarter
campaign
¡ Raised $9.5 million
¡ Twice field view of prior
headsets
¡ Better resolution (640 X 800)
¡ Facebook acquired Oculus in
2014
2014 ONWARDS MANY PLAYERS ENTERED THE MARKET

¡ Facebook acquired Oculus

¡ Sony announced console-based VR PlayStation headset
¡ Microsoft announced Hololense
¡ HTC announced Vive
¡ Google announced VR platform Daydream
VR THE ‘LAST MEDIUM’

¡ Replaced the need to click or tap the screen to navigate

¡ Removed the perception of ’medium’ standing between user and the content
¡ User could navigate with use of more ‘natural’ functions: voice & body gestures
¡ Applications in arts , computer-aided design, social interaction & personal productivity
HARDWARE SEGMENTATION

¡ Mobile based headsets

¡ Home-console based headsets; e.g Sony Playstation VR
¡ Stand alone headsets; e.g. Facebooks Oculus & HTC vive
VR APPLICATIONS

¡ Feedback loop between :

¡ Large user base
¡ Application development
¡ To justify investment in hardware costs by the users, perceived value of aggregated content should be greater than
hardware costs
¡ Without a critical mass of users, major application developers were hesitant to produce content
¡ This was still achievable in Business applications but difficult in consumer applications
APPROACHES TO CONTENT DEVELOPMENT

¡ Open Ecosystem : Games compatible across platforms; HTC Vive

¡ Closed Ecosystems: Platform-exclusive game development; Facebook & Oculus
¡ Developer community critical of closed ecosystems model
VR MARKETPLACE

¡ Sell & distribute VR content

¡ Provide software for game development
¡ Stream VR in partnership HTC & Valve (cross platform applicability)
¡ Oculus Home (only for Oculus users)
¡ HTC Viveport ; Subscription based marketplace (gaming and non gaming applications)
KEY CONCERN FOR VR INDUSTRY

¡ Need for killer application that can drive purchase by non-adopters

¡ High fixed costs in game development
¡ Demands for cross-platform standards to recoup high development costs
¡ High per unit costs for customers
¡ Need to reduce OEM’s costs
CAN VR BECOME NEXT MAJOR REVOLUTION IN THE
INDUSTRY?
CASE : POKEMON GO
BUSINESS MODEL

¡ Customer Value Proposition

¡ Customers : 90’s kids (aware pokemon) ; mobile gamer;
¡ Value : Nostalgia ; physical game play ; combine multiple stimulating aspects ; AR experience ; social gaming ;convenience ;
discovery ; social & helath
¡ Profit Model : in- app purchases; partnership with retailers for pokestops; complementory products; advertising
¡ Key resources : AR technology ; POKEMON trade work ;
¡ Key Processes : development process ; publicity & marketing; user behviour ; hardware inregration ; platform &
geography release ; Selecting pokestop
¡ Production ecosystem : AR tech; OS platforms; Partnership Pokemon company : GPS
¡ Consumenr eco-system : Smartphone ; Internet ; Battery life
¡ Digital Envelope : in app data ; playstore data, GPS data ; social media ; news
IS AR/VR A POTENTIAL DISRUPTIVE TECHNOLOGY

Characteristics of Disruptive DIGITAL entrants

¡ Often originate in low-end or new-market footholds
¡ Threaten the bottom lines of incumbents with great speed
¡ Attackers don’t simply take market share — they also often put pressure on price, alter customer behaviour, and
change how value is distributed among industry players
WHAT FACTORS CONTRIBUTED TO SUCCESS OF
SUDDEN SUCCESS OF POKEMON GO?
FUTURE OF AR/VR TECHNOLOGIES?
CAN POKEMON GO BE CONSIDERED AS A KILLER APPLICATION IN THE DOMAIN?
THANK YOU!