Virtual Reality More Than Just Gaming
categories: [article]
By: Jotham Lim
Virtual Reality (VR) was once a hot topic that took the world by storm, with many major corporations competing to take the lead in the advancement of this technology. Sony, HTC and Samsung are a few of the many brands investing heavily in this space, and giants like Facebook and YouTube are looking to integrate its content into their systems.
The VR craze started with the emergence of the Oculus Rift, which crowdfunded its way into mainstream success and was bought by Facebook in 2014 for US$3 billion. It is one of the most successful start-up stories of the century, and the device was initially used in the gaming space. However, due to its origin, VR has been heavily associated with the gaming and entertainment industry, but is that the limit of its potential?
Many entrepreneurs have seen the potential that lies within Virtual Reality outside the realms of gaming, and new industries have emerged in its place. This article hopes to serve as a case study for entrepreneurs, to see how a single device can have many uses and how different businesses can evolve alongside the development of new technologies.
VR for Property
VR is steadily gaining traction as a marketing tool for property developers to market their newly launched projects. It allows customers to experience what a finished property will look like in extreme detail, down to the view outside your window at any given floor. It offers customers a layer of understanding beyond a simple floor plan and artist impression videos.
VR also serves as an alternative to show units, being a viable marketing tool for when the show unit is still under construction or for new developers with tight budgets. One advantage of having VR as a marketing tool is that it is a 24-hour service where customers can access the service online at any time and anywhere. VR goes beyond physical constraints, giving customers the ability to view multiple properties in one go without ever needing to leave the comfort of their own home.
A property sales agent shared online, “My agency has managed to sell a few units while the show unit is still under renovation. It definitely gives us something to do while waiting for renovations to be completed and reduces our costs.”
An investor also shared, “Experiencing VR was definitely a wow factor for me, but I wouldn’t base my purchasing decisions off it. Just like any other tool, it provides the information I need to make an informed decision, but investment fundamentals should trump marketing attempts. I prefer to visit a physical show unit instead.”
While it is indeed a rare sight here in Malaysia, it is quite common to find VR services in the secondary market overseas. In fact, the company 3DCapsLock was founded with the sub-sale market in mind. Co-owner Oyvind Romundset explained that VR technology is widely adopted in his native country of Norway and he is looking forward to bringing the concept here to Malaysia.
“I believe in a few years there will be a boom in the sub-sale market here. Currently, there is a glut of Malaysian properties and developers would be holding back announcing new launches. Soon, the secondary market will take centre stage, with investors competing to sell existing units.”
VR can be a great tool to help these investors market their property, said Oyvind. “But right now, the focus is on newly launched projects to provide customers with a wonderful experience.”
VR for Education
The evolution and advancement of the educational sector have been stagnant for the longest time, not just in Malaysia but across the entire world. In an attempt to catch up with evolving trends, we have installed LCD projectors in classrooms and children now bring iPads and laptops to school instead of books. While it is still a remarkable feat to adopt tech devices in the schooling system, it does little to improve the quality of education.
The key issue is that we have been using the same teaching methods for centuries. The traditional model involves a teacher lecturing upfront while students read text through textbooks or iPad screens - a form of passive learning that works to a certain extent but is slowly phasing out in favour of newer, more innovative ways of learning.
VR technology has slowly changed how education works in a classroom setting. ClassVR, a standalone VR and augmented reality (AR) headgear, has completed an entire learning ecosystem with full-fledged courses. Students are able to interact with their surroundings digitally, research queries through hand gestures, and conduct simulations and experiments in a safe, monitored environment without needing additional tools.
This form of active learning is a welcome addition to the current education system. Having students participate actively in the learning process helps them learn concepts better and faster. The difference between learning a lesson and experiencing it first-hand is significant. Traditionally, active learning was primarily found in early childhood and primary educational programmes through games, experiments and playtime.
However, ClassVR can be used across all age groups and different levels of education. The technology has proven effective in vocational studies, helping students develop highly technical skills through simulations and hands-on practice. VR in education is definitely a sector worth exploring further in the future.
VR as a Cybercafe
It is now common for the average household to have multiple laptops and desktop computers, yet cyber cafes have never truly fallen out of favour. On the contrary, they are making a comeback and have gained rapid momentum, evolving into e-sport arenas. Cyber cafes are an attractive pastime for many teenagers and young adults. This is attributed to many factors: cyber cafes are a great place for gamers to socialise and are regularly endorsed by PC hardware companies for competitive gaming events.
Now, apply the same concept to Virtual Reality and you have a workable and exciting business model. VR Arena, a virtual reality cyber cafe located in e-Curve, aims to provide an immersive gaming experience beyond what traditional cyber cafes offer.
VR equipment is not easily accessible to the general public due to its price and the extensive technical knowledge needed to operate the equipment. However, renting out the equipment and having it managed by store attendants makes the technology accessible to the general consumer, just like the early days of cyber cafes.
On paper, it sounds like a solid idea that can be easily replicated and expanded upon. However, we have yet to see VR cyber cafes popping up left and right across the country. This is attributed to many different reasons.
VR technology is still relatively new and the equipment is prone to breaking down at random intervals. Coupled with the general lack of proper care when using these public devices, the equipment can go out of service really quickly, making it expensive to try and maintain or repair said equipment.
To remain profitable, cyber cafe owners are forced to increase their sale prices, which is a significant deal breaker for the intended audience. The average cost is more than RM10 for a 20-minute play session in a VR cyber cafe, whereas it only costs RM3 for a 1-hour session in a traditional cyber cafe. With traditional cyber cafes costing only a fraction of what VR cyber cafes offer, it is hard to build a loyal and committed customer base for the concept.
Yet, there is still a massive demand for the services provided. If the owner can come up with solutions to these issues, there is a possibility of hitting the mainstream anytime soon.
Conclusion
This technology, in its current state, faces multiple challenges before it can be considered a serious investment. From the lack of content, decentralised platforms, and the expensive price tag associated with such a device, it is hard to see it gaining widespread use right now. However, there are plenty of business opportunities and potential to be tapped into. As entrepreneurs seek to unlock such potential, they may leave a lasting and significant impact on society.