Two years back when social media giant Facebook did a huge deal in the virtual reality world by acquiring Oculus for a whopping $2 billion, the Chinese firms started noticing the change and where the trend was heading and soon there were tons of startups all over for the purpose.
A lot of companies invested into the technology though soon the idea felt like crippling and things seemed to change for the bad very soon.
Between 2014 and 2015 there were about 200 plus virtual reality startups that got launched in a hope to make it big very soon, though over 90% of them failed or filed for bankruptcy. Most of them got buried under the competitive copycats that role out similar and cheaper products, while other found it hard to make a name when there were popular and well-established brands like Samsung, HTC or Oculus already there.
No doubt that the massive deal of Palmer Luckey, who was the founder of the Oculus firm motivated many teams to jump right into the market, though very soon due to the lack of innovation in the Industry for over an year, over 70 percent of the smartphone users in China responded with zero willingness to buy a virtual reality headset.
2015 alone brought more than 2.4 billion yuan that were raised, all by the virtual reality startups though this year there were only 1.54 billion that came forward, which clearly shows the negative trend.
This doesn’t mean that there won’t be any scope for VR in the coming years, in fact, it would surely continue to rise up the ladders in next 5 years.
Source:
https://www.mobilescout.com/android/...-bankrupt.html