Global Virtual Reality Marketplace Drivers

  • Facebook purchased Oculus in Feb 2014 for $2B

    • The Oculus Rift headset is widely acclaimed as the first successful virtual reality experience

    • Their consumer program will be launching Q1 2016 with an expected sub-$400 price point

  • According to Business Insider Intelligence:

    • Estimated shipments of VR headsets will grow at a swift 99% compound annual growth rate between 2015 and 2020

    • VR shipments will create a $2.8 billion hardware market by 2020, up from an estimated $37 million market this year. [We believe this is pessimistic]

    • VR headsets are a fairly low-cost consumer electronics category, and this will help drive adoption  

    • VR will be an important platform for streaming content and even shopping. Oculus has already experimented with Story Studio, a platform for VR movie creation. In addition, many consumers claim the VR experience will drive them to shop more online rather than in stores