Investing in Virtual Reality
Virtual Reality is one of the fastest growing sectors in the technology landscape. However, it is still a small market, just 1% of the computers is ready for VR. But this doesn’t prevent companies like Facebook, Nvidia, Sony and GoPro to invest millions in this promising technology.
The following years, the potential of virtual reality will only really come to light. According to Trend Force the number of users of VR will increase to 171 million over the next two years. By 2020 it is expected that the market for VR will already amount to $ 70 billion.
Which companies provide investors with a good opportunity to take advantage of this new trend? We have listed the best virtual reality stock picks.
Nvidia already has a dominant position in the market for graphic processors for VR. It owns about 60% of the GPU market. Nvidia is not planning to give up its dominant position in the market. This month, the company once again launched a series of graphics cards which make every laptop VR compatible.
Nvidia’s dominant position probably makes it one of the biggest winners of the virtual reality trend.
Sony starts in October with the sale of a Virtual Reality set, games – musculoskeletal and VR headset – for $ 499. PlayStation VR is compatible with the PlayStation 4 , of which over 40 million are sold. Experts say consumers prefer Virtual Reality through a games console than via PC or Laptop. Sony already has some 230 VR games for PlayStation.
Facebook bought Oculus for $ 2 billion two years ago. The Rift Headset for Virtual Reality is state of the art in the sector and is on the shelves for $ 599 since January. For Mark Zuckerberg, Oculus is a long-term investment.
According to Oculus CEO, Palmer Luckey, it will take another 5 to 10 years before Virtual Reality really starts to grow, just as PCs and mobile phones needed time to conquer the world.
Earlier this year, GoPro launched a cube-like device with six cameras to create stunning 3D videos. These videos can be used in virtual reality programs. The device, the Omni, costs $ 1500 but to use it in VR you also need the HERO4 cameras which cost an additional $ 5,000. This limits the use for consumers and will more than likely provoke competition for cheaper handsets.