VR Game Revenue To Exceed $8 Billion By 2023
Latest research from Juniper forecasts virtual reality (VR) game revenues to hit US$8.2 billion by 2023 – a whopping jump from US$1.9 billion tipped in 2019.
The year 2023 is set to be the first where VR content revenues [games, gambling and multimedia] exceed hardware revenues.
Research recommends VR headset manufacturers focus on increasing VR content libraries (e.g. via app store partnerships) to capitalise on the expected user growth.
The study claims smartphone VR content is essential to increasing consumer confidence, spiking growth across all VR-capable platforms.
Revenues from VR-specific mobile games alone are expected to notch US$4.6 billion by 2023. Despite this, average revenue per mobile user is set to be the lowest of all VR platforms.
Over 100 million mobile VR devices (including smartphone and standalone headsets) are forecast to globally access games by 2023 – up from 52 million devices in 2019.
The study argues low-cost mobile VR content is needed to encourage users to embrace other platforms.
Research suggests the majority of VR games in 2019 will not be monetised, citing a difficulty to implement advertising in VR content. App developers are encouraged to leverage in-app purchases.
Engaging VR content is considered the key driver to sustain VR hardware sales, in order to meet Juniper’s game revenue forecasts.
Read Juniper Research’s Virtual Reality Markets: Innovation, Disruption & Future Prospects 2019 – 2023 report here.