Virtual and augmented reality may well become multi-billion dollar industries in the next few years, but not if there isn’t a whole lot more compelling content.
That’s one of the chief takeaways of a survey released today by the corporate law firm Perkins Coie. Thirty-seven percent of respondents said “inadequate content offerings” are the biggest challenges facing both VR and AR going forward, followed by “consumer and business reluctance to embrace AR/VR innovation” at 23% and “technological limitations” at 20%.
That suggests that, Pokemon Go’s massive success notwithstanding, if the companies at the heart of the virtual and augmented reality ecosystems want to truly build multi-billion dollar industries, they need to ramp up the amount of quality content available.
Other conclusions suggest that AR has a much bigger financial upside than VR, with 66% of the survey’s respondents reporting that they expect AR will surpass VR in revenue. However, 46% said they expect it to take five years or more before that happens, while just 18% said it would happen in three years or less.
The study covers a lot of other ground as well, including the funding status of startups in the two industries, the major concerns of investors in the area, the exit strategies of startups in the field, and much more.