- 12-30-2016, 10:49 PM #1
90% Chinese VR companies got bankrupt under the burdern of the competition
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.
- 01-01-2017, 11:35 AM #4
I think the main problem is they didn't offer something exclusive or new, just more of the same without a new brand, so the people will prefer to go with a better brand instead of trying a new one.
- 01-01-2017, 02:05 PM #5
- 01-01-2017, 06:51 PM #6
Don't even want to spend half of the price if the brand isn't pretty known, I won't pay $300 for an unknown brand while it's more likely I will pay $600 for the Rift.
Last edited by Chemy JMHT; 01-02-2017 at 07:37 PM.
- 01-04-2017, 05:42 PM #9
And even if they offered something better, I am not sure if they are able to market it well enough in order to succeed.
It am just speculating, but it may be possible that there are better headset than the Rift/Vive that we aren't really aware of because they are not owned by companies that have a lot of money for marketing.
Of course that big companies have more money for development though, so it is still very likely that the Rift and the Vive are the best headsets out there with all their research teams.
- 01-04-2017, 10:58 PM #10
- 01-05-2017, 01:11 PM #11
I guess that the chinese companies are heavily copying things on the hardware side, so maybe they don't even require research-they just take a finished product from another high end company, examine it and copy many features.
So maybe it is worth it after all, since we may be getting almost the same product as the Rift, just at a lower price (and with problematic software as you said).
That said, I doubt that quality will be even close...
- 01-06-2017, 08:03 AM #12
- 01-08-2017, 09:32 PM #13
The marketing is very important, but if any company does something impressive for sure a big company will want that technology, the best example is Oculus, was a crowfounded company which was acquired by Facebook because what it was doing was great at the time, Fove (which is not Chinese but just as example) is developing the eye tracking technology, so other companies (including some from China) starting doing the same and some of the Chinese companies were bought by bigger companies, so somehow we can say those companies survived.
- 01-10-2017, 09:27 PM #14
- 01-10-2017, 10:32 PM #15
Yes I'm sure more of those 90℅ are just those cheap cardboard copies and from that 10℅ I'm sure most are to cheap cardboard copies, but I think in both groups should be some developments.
- 01-18-2017, 06:42 PM #16
Here's the big issue: All of these companies were making devices that did not play well with established channels for content, or were using Google APIs and then locking down content. Most of these companies had bad business models and no real plan. I'm glad they burned because the quality is going to be key for VR and AR adoption. Fly-by-night companies will kill it before it starts.
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