SlideShare a Scribd company logo
1 of 55
Download to read offline
VIRTUAL REALITY GAMING
OCULUS RIFT
BUSINESS MODEL
Chua Ping Shiuan
Priscilla Mariani
William Suryadiputra

Yeo Kiat Hwee
AGENDA
1. Introduction to Oculus
2. Gaming ecosystem
3. Value proposition
4. Customer selection
5. Value capture

6. Scope of activities

7. Strategic control

8. Future Possibilities
2/
42
INTRODUCTION
TO OCULUS
THE TECHNOLOGY:
VIRTUAL REALITY
Virtual reality


Use of computer modelling and simulation to enable a person
to interact with an artificial three-dimensional visual or
other sensory environment.



The illusion of being in the created environment
(telepresence) is accomplished by motion sensors that pick
up user’s movements... usually in real time.

INTRODUCTION TO OCULUS

4/
42
CONVENTIONAL GAMING

INTRODUCTION TO OCULUS

5/
42
VIRTUAL REALITY GAMING
THE PRODUCT: OCULUS RIFT


VR head-mounted display



Fast head tracking



Large Field of View



HD screen and 3D vision



Adjustable focus



Price: 300 USD

INTRODUCTION TO OCULUS

7/
42
GAMING ECOSYSTEM
GAMING ECOSYSTEM

10 /
42
CURRENT ECOSYSTEM
Product

Oculus
Rift

End users
Revenue
Dev. Kit

Revenue from
Dev. Kit Sales
+ % Revenue
from Game
Sales in
Oculus Share

Games
Revenue from
Game Sales in
Oculus Share

Game
Developers

Game Console
Manufacturers
(Sony, Nintendo,
Microsoft)

GAMING ECOSYSTEM

11 /
42
MARKET SITUATION


Current Competitors



Sony Playstation





Microsoft Xbox

Nintendo Wii

Rising competitors


Sony VR Headset



Zeiss Cinemizer OLED

GAMING ECOSYSTEM

12 /
42
FLAWS IN CURRENT DIRECTION ?
●

Difficult to compete
No suitable control consoles and the market has stiff competition
between three large game console makers (Sony Playstation,
Nintendo Wii, Microsoft Xbox)

●

Technology can be easily copied
Sony is in the process of developing its own VR kit

●

Still limited games can be played using Oculus
Will get even harder to attract game developers with the existing
“incomplete” console

GAMING ECOSYSTEM

13 /
42
A BETTER ECOSYSTEM?
Hardware
licensing

Product

Console Makers
Revenue

Oculus
Rift

Sale Revenue

% Game
Sales

Console
Development
Kit

Oculus SDK

Game
Developers
% Game
Sales

GAMING ECOSYSTEM

End users

Games

Sale Revenue

14 /
42
VALUE
PROPOSITION
VIRTUAL REALITY


Immersive gaming



Allow new possibilities of gaming

VALUE PROPOSITION

16 /
42
STRATEGY CANVAS

PC Gaming
Console Gaming
Motion Gaming
VR Gaming

Graphics

Number of games

VALUE PROPOSITION

Intuitiveness

Interactivity

Immersiveness
17 /
42
IMMERSIVE GAMING
OCULUS RIFT
“The magic that sets the Rift apart is
immersive stereoscopic 3D rendering, a

massive field of view, and ultra low
latency head tracking.”
- Palmer Luckey, Founder of Oculus

VALUE PROPOSITION

19 /
42
OCULUS RIFT
THE OCULUS RIFT
ADVANTAGE


Better gaming experience whereby visual display is
instinctive




Gamers can orientate their perspective base on head motion

Create the impression of an immense environment
within a small physical space


Large field of view



Oculus offers low latency, fast head-tracking
performance



Head movement tracking without motion sickness



Adjustable focus for near- or far-sighted gamers

VALUE PROPOSITION

21 /
42
FOR CONSOLE MAKERS


Attract more gamers because of more immersive gaming
experience



Charge higher price for VR games



Large hype and demand in the market





There is already much hype from developers, media
$2,437,429 pledged of $250,000 goal in Kickstarter shows
demand

Guaranteed reputation





People in the company are experts in their field
Oculus as a leader in the VR game industry

Save time and money from R&D

VALUE PROPOSITION

22 /
42
TECHNICAL
DISADVANTAGES


Lack of compatible games



Not enough content

VALUE PROPOSITION

23 /
42
CUSTOMER
SELECTION
TARGET SEGMENTS


Early adopters of novel game technologies


Have the latest games and consoles



Doesn’t mind lack of support



Age group 20-30 years old



Gamers who frequent gaming conventions



Mostly males



People with willingness and ability to spend on game, consoles and
accessories.



Adventurous


Explore new gaming experiences



Loves to explore game worlds

CUSTOMER SELECTION

25 /
42
TARGET SEGMENTS


Gamers who enjoy first-person games


Racing



Shooting



Horror



Sandbox

CUSTOMER SELECTION

26 /
42
CONSOLE MAKERS
Sony

Microsoft

 More exclusive games
 Game developer itself
(Sony Computer
Entertainment)
 More support for indie
game developers

 Better online experience –  Complements the motionmore players
based games and motion
controls
 Complements the Kinect
motion gaming
 Offline multiplayer
experience generate more
 More first-person games
demand of Oculus Rift
(Halo, Gears of War – Xbox
exclusive)
 More interactive games

-

Developing its own VR
Headset
Conflict with Sony’s TV
business

CUSTOMER SELECTION

-

Less exclusive games

Nintendo

- Different customer
segment

27 /
42
CONSOLE MAKERS
Sony

Microsoft

 More exclusive games
 Game developer itself
(Sony Computer
Entertainment)
 More support for indie
game developers

 Better online experience –  Complements the motionmore players
based games and motion
controls
 Complements the Kinect
motion gaming
 Offline multiplayer
experience generate more
 More first-person games
demand of Oculus Rift
(Halo, Gears of War – Xbox
exclusive)
 More interactive games

-

Developing its own VR
Headset
Conflict with Sony’s TV
business

CUSTOMER SELECTION

-

Less exclusive games

Nintendo

- Different customer
segment

28 /
42
WHY NOT ON THE PC
PLATFORM


Native PC controllers are not suitable for VR



Less game developers on PC



Less gamers on PC



Difficult to have exclusive contract in PC

market

CUSTOMER SELECTION

29 /
42
VALUE CAPTURE
NEW VALUE CAPTURE
Hardware
licensing

Product

Console Makers
Revenue

Oculus
Rift

Sale Revenue

% Game
Sales

Console
Development
Kit

Oculus SDK

Game
Developers
% Game
Sales

VALUE CAPTURE

End users

Games

Sale Revenue

31 /
42
VALUE CAPTURE
METHODS


Sources of revenue can be through the


Licensing of hardware to other game

console makers


Percentage game sales from game

developers

VALUE CAPTURE

32 /
42
SCOPE OF
ACTIVITIES
SCOPE OF ACTIVITIES


Partnership with console makers




Distribution of Oculus SDK to game developers




Hardware license

Provide SDK updates and support

R&D In-house VR technology


Hardware



Software

SCOPE OF ACTIVITIES

34 /
42
PROCESS FLOW
Console Makers
Hardware
License

DESIGN

PRODUCTION

MARKETING

SALES

DISTRIBUTION

END
USERS

R&D
OCULUS

Oculus
SDK

(GAMERS)

CONCEPTUALISATION

DEVELOPMENT

TESTING

MARKETING

DISTRIBUTION

Game Developers

SCOPE OF ACTIVITIES

35 /
42
STRATEGIC
CONTROL
STRATEGIC CONTROL


Exclusive contract with game console
companies






Don’t allow partnership with other VR-related
companies
Continued usage of Oculus brand name

Intellectual Property Rights


Patent



Trademark

STRATEGIC CONTROL

37 /
42
STRATEGIC CONTROL


Leverage on network effect





More game developers on Oculus platform ⇔ More Oculus gamers
Create more community and online games

Continuous in-house R&D




ensure leadership in VR

HR management





Non-disclosure agreements (NDA)
Non-competition contracts

Work with complementary assets


Improving the game experience

STRATEGIC CONTROL

38 /
42
COMPLEMENTARY ASSETS
FUTURE
POSSIBILITIES
FUTURE POSSIBILITIES


Locked-in to one console manufacturer



Diversify into other markets



Theme parks: interactive cinemas, simulations and digital games



Training camps: military training, olympic training, pilot training, etc.



Schools: immersive learning experience



Property agents and interior designers: immersive design visualization





Cinemas: immersive movie experience

Many others

Further R&D


Full coverage of human vision span (i.e. peripheral vision)

FUTURE POSSIBILITIES

41 /
42
CONCLUSION
Strategic
Control
Scope of
activities

Value
Capture

Customer
selection
Value
Proposition

42 /
42
INDEX


Introduction to Oculus



Customer selection



Console Wars





Target Segments (1)



Revenue Model



Conventional Gaming



Target Segments (2)



Fourth Console



Virtual Reality Gaming <[ ]>



The Product



Console Makers



License Hardware Design





The Technology

The Company



Why Not PC?



Acquisition



Microsoft

Gaming ecosystem



Value capture


New Value Capture



Exclusive Games



Value Capture Methods



Backup Plan



Why Gaming



Latest Development




Current Situation



Market Situation



Flaws in Current Direction



Activities





Ocean

Better Ecosystem



Material Flow

Value proposition


Quote



Scope of activities

Strategic control

Immersive Gaming <[ ]>





Virtual Reality







Strategic Control (1)



Strategic Control (2)

Latency Demonstration <[ ]>



Complementary Assets



The Oculus Rift Advantage



Compl. Assets <[ ]>



For Console Makers



Future Possibilities



Technical Disadvantages



Conclusion
CONSOLE WARS


Currently at 8th Generation



Infamously led to death of SEGA as console maker




SEGA tried to compete graphics with Sony PS2

Long-time players Nintendo and Sony





Since 1990s after American Video Game Crash 1983
Microsoft is the only successful late entrant

Tug-of-war to get Game Developers


Aim to strike exclusive deals with developers

Appendix A
REVENUE MODEL
Profitability

Stable
Continuous
Revenue

For Large Game
Companies

For
Independent
Developers

One-off
Subscription
% Game
Sales

Appendix B
FOURTH CONSOLE


Sony developing their VR headset




Easily copied technology

Competitive console market





Competing for games
Timing is utmost importance

Difficult to create network effect






Game developers need to learn to develop for a new
console
Consumer switching cost

No suitable control system
Appendix C
HARDWARE DESIGN
LICENSE


Retain operating software



Prevent console maker from imitating the

full product

Appendix D
ACQUISITION

NO


Free to penetrate other markets


Can still push for own console



Other markets potentially more profitable



High capital markets – Medical and Military



Large user base – Cinema and Theme Parks

Appendix E
WHY MICROSOFT NEEDS
OCULUS


Competition with Sony




Graphics battle goes to the next level on VR

Losing the exclusive games battle to Sony





Oculus Rift will attract game developers to build on VR
Microsoft needs to dive into VR earlier than Sony to win

Realise the importance of first-mover in gaming industry

Appendix F
XBOX One
Below - Capybara Games
Cobalt - Mojang
D4: Dark Dreams Don't Die - Access Games
Fable Legends - Lionhead Studios
Fantasia: Music Evolved
Halo 5 - 343 Industries
Halo: Spartan Assault - Vanguard Entertainment / 343
Industries
Kinect Sports Rivals - Rare
LocoCycle
Max: The Curse of Brotherhood
Peggle 2
Plants vs. Zombies: Garden Warfare
Project Spark - Team Dakota
Quantum Break - Remedy Entertainment
Sunset Overdrive - Insomniac Games
Titanfall - Respawn Entertainment
Xbox Fitness - Microsoft Studios
Zoo Tycoon

EXCLUSI
VE
GAMES
XBOX
ONE
vs PS4

PLAYSTATION 4
Assault Android Cactus - Witch Beam
Octodad: Dadliest Catch - Young Horses, Inc
Basement Crawl - Bloober Team
Onigiri - Cyberstep (free-to-play)
Blast 'Em Bunnies - Nnooo
Outlast - Red Barrels Studio
Cosmic Star Heroine - Zeboyd Games
Pavillion - Visiontrick Media
CounterSpy - Dynamighty
Phantom Breaker: Battle Grounds Overdrive - 5pb
Daylight - Zombie Studios
PlanetSide 2 - Sony Online Entertainment
Deep Down - Capcom
Pool Nation Extreme/FX - Cherry Pop Games
Divekick - Iron Galaxy
Primal Carnage: Genesis - Lukewarm Media
Doki-Doki Universe - HumaNature Studios
Project Phoenix - Creative Intelligence Arts
Don't Starve - Klei Entertainment
Project: Heart and Soul - Reach Game Studios
Dragon's Prophet - Sony Online Entertainment (free-to-play)
Putty Squad - System 3
Dream Club: Host Girls on Stage - Tamsoft
QuickDraw - Greenfly Studios
DriveClub - Evolution Studios
Ray's the Dead - Ragtag Studios
DUST 514 - CCP (free-to-play)
Rime - Tequila Works
Dynasty Warriors 8 w/ Xtreme Legends Bundle - Tecmo Koei
Road Not Taken - Spry Fox
Earth Defense Force
Rocketbirds 2: Evolution - Ratloop
Escape Plan - Fun Bits Interactive
Rogue Legacy - Cellar Door Games
Everquest Next - Sony Online Entertainment (free-to-play)
Samurai Gunn - Maxistentialism
Everybody's Gone to the Rapture - The Chinese Room / Sony
Secret Ponchos - Switchblade Monkeys
Santa Monica
Fez - Polytron Corporation
Shadow of the Beast - Heavy Spectrum
Final Fantasy XIV: A Realm Reborn - Square Enix
Sherlock Holmes: Crimes and Punishments - Frogwares
Final Horizon - Eiconic Games
SOMA - Frictional Games
flOw - Thatgamecompany
Sportsfriends - Die Gute Fabrik
Galak-Z: The Dimensional 17-BIT
Starbound - Chucklefish
GlowTag - Greenfly Studios
Super Exploding Zoo - Honeyslug
Guns of Icarus Online - Muse Games
Switch Galaxy Ultra - Atomicom
H-Hour: World's Elite - SOF Studios
The Binding of Isaac: Rebirth - Nicalis
Helldivers - Arrowhead Studios
The Idolm@ster - Namco Bandai Games
Hohokum - Honeyslug
The Order: 1886 - Ready at Dawn / Sony Santa Monica
Hotline Miami 2: Wrong Number - Dennaton Games
The Playroom - Sony
Hyper Light Drifter - Heart Machine
The Witness - Jonathan Blow
Joysound Drive 2 - Xing Entertainment
Tiny Brains - Spearhead Games
Lily Bergamo - Grasshopper Manufacture
Tottemo E Mahjong Plus - Arc System Works
Mercenary Kings - Tribute Games
Transistor - Supergiant Games
MLB 14: The Show - Sony San Diego
Velocity 2X - FuturLab
Mobile Suit Gundam - Namco Bandai Games
Volume - Mike Bithell Games
N++ - Metanet Software
War Thunder - Gaijin Entertainment (free-to-play)
Natural Doctrine - Kadokawa Games
Wasteland Kings - Vlambeer
Nikoli no Puzzle 4: Sudoku - Hamster
Yakuza Ishin - Sega
Nuclear Throne - Vlambeer

Source: http://www.neowin.net/news/list-of-xbox-one-and-playstation-4-exclusive-games

Appendix G
BACKUP PLAN


Develop own game console



Approach as many game developers as possible





A chance to create a new gaming experience

Preferably first-person game developers

Strike partnership with vital accessories





Razer Hydra – motion controller perfect for shooter games
Virtuix Omni Treadmill

Intensive marketing effort

Appendix H
WHY GAMING


Virtuality is something gamers have been wanting



More adapters of new tech


E.g. motion gaming caught on within less than a year
(2011)



Large pool of tech enthusiasts




Large portion of adventurous individuals

But, there is a danger of price buyers
Appendix H
Nov 11, 2013
Source:
http://www.techradar.com/news/gaming/oc
ulus-rift-creator-xbox-one-and-ps4-are-fartoo-limited-for-what-we-re-planning1198420

LATEST DEVELOPMENT

Appendix I
Nov 11, 2013
Source:
http://www.techradar.com/news/gaming/oc
ulus-rift-creator-xbox-one-and-ps4-are-fartoo-limited-for-what-we-re-planning1198420

LATEST DEVELOPMENT

"Consoles are too limited for what we want to do," he says. "We're

trying to make the best virtual reality device in the world and we want to
continue to innovate and upgrade every year - continue making
progress internally - and whenever we make big jumps we want to push

that to the public.”
- Palmer Luckey, founder of Oculus

Appendix I
WHY OCULUS IS PUSHING


Dislikes the long life cycle of consoles





Prevent them from continuously improving
Graphical performance bound by graphics processors
(hardware)

Eager to disrupt the video game business






Shorter life cycle of consoles

Full-fledged VR gaming

On the lookout for Valve


Steam Box and SteamOS
Appendix I

More Related Content

What's hot

Crossing The Chasm
Crossing The ChasmCrossing The Chasm
Crossing The ChasmSrini Kumar
 
AR / VR -- Rise of Technology
AR / VR -- Rise of Technology AR / VR -- Rise of Technology
AR / VR -- Rise of Technology ShaheenTaj10
 
ZMET Technique In Marketing Research
ZMET Technique In Marketing ResearchZMET Technique In Marketing Research
ZMET Technique In Marketing ResearchTaylan Demirkaya
 
Augmented Reality
Augmented RealityAugmented Reality
Augmented RealityAnkit Raj
 
Augmented Reality - the next big thing in mobile
Augmented Reality - the next big thing in mobileAugmented Reality - the next big thing in mobile
Augmented Reality - the next big thing in mobileHari Gottipati
 
Virtual reality
Virtual realityVirtual reality
Virtual realityyp95
 
How to Build Winning Products by Microsoft Sr. Product Manager
How to Build Winning Products by Microsoft Sr. Product ManagerHow to Build Winning Products by Microsoft Sr. Product Manager
How to Build Winning Products by Microsoft Sr. Product ManagerProduct School
 
The Emerging Virtual Reality Landscape: a Primer
The Emerging Virtual Reality Landscape: a PrimerThe Emerging Virtual Reality Landscape: a Primer
The Emerging Virtual Reality Landscape: a PrimerSim Blaustein
 
XR and the Future of Immersive Technology
XR and the Future of Immersive TechnologyXR and the Future of Immersive Technology
XR and the Future of Immersive TechnologyVincent Lau
 
What is the Metaverse?
What is the Metaverse?What is the Metaverse?
What is the Metaverse?Stephen Irvine
 
Recent advances in applications of augmented reality
Recent advances in applications of augmented realityRecent advances in applications of augmented reality
Recent advances in applications of augmented realityVaibhav Mehta
 

What's hot (20)

Crossing The Chasm
Crossing The ChasmCrossing The Chasm
Crossing The Chasm
 
Netflix
NetflixNetflix
Netflix
 
VR
VR VR
VR
 
AR / VR -- Rise of Technology
AR / VR -- Rise of Technology AR / VR -- Rise of Technology
AR / VR -- Rise of Technology
 
Oculus Rift
Oculus RiftOculus Rift
Oculus Rift
 
Cirque du Soleil
Cirque du SoleilCirque du Soleil
Cirque du Soleil
 
ZMET Technique In Marketing Research
ZMET Technique In Marketing ResearchZMET Technique In Marketing Research
ZMET Technique In Marketing Research
 
Augmented Reality (AR)
Augmented Reality (AR)Augmented Reality (AR)
Augmented Reality (AR)
 
Augmented Reality
Augmented RealityAugmented Reality
Augmented Reality
 
Augmented Reality - the next big thing in mobile
Augmented Reality - the next big thing in mobileAugmented Reality - the next big thing in mobile
Augmented Reality - the next big thing in mobile
 
Virtual reality
Virtual realityVirtual reality
Virtual reality
 
Virtual reality
Virtual realityVirtual reality
Virtual reality
 
How to Build Winning Products by Microsoft Sr. Product Manager
How to Build Winning Products by Microsoft Sr. Product ManagerHow to Build Winning Products by Microsoft Sr. Product Manager
How to Build Winning Products by Microsoft Sr. Product Manager
 
The Emerging Virtual Reality Landscape: a Primer
The Emerging Virtual Reality Landscape: a PrimerThe Emerging Virtual Reality Landscape: a Primer
The Emerging Virtual Reality Landscape: a Primer
 
VR Marketing
VR MarketingVR Marketing
VR Marketing
 
Virtual reality
Virtual realityVirtual reality
Virtual reality
 
XR and the Future of Immersive Technology
XR and the Future of Immersive TechnologyXR and the Future of Immersive Technology
XR and the Future of Immersive Technology
 
What is the Metaverse?
What is the Metaverse?What is the Metaverse?
What is the Metaverse?
 
Virtual reality
Virtual realityVirtual reality
Virtual reality
 
Recent advances in applications of augmented reality
Recent advances in applications of augmented realityRecent advances in applications of augmented reality
Recent advances in applications of augmented reality
 

Similar to Virtual Reality, Oculus Rift, Business Model

Building the Matrix: Your First VR App (SVCC 2016)
Building the Matrix: Your First VR App (SVCC 2016)Building the Matrix: Your First VR App (SVCC 2016)
Building the Matrix: Your First VR App (SVCC 2016)Liv Erickson
 
Ideaworks Game Studio Profile
Ideaworks Game Studio ProfileIdeaworks Game Studio Profile
Ideaworks Game Studio Profilerobhendry
 
Storytelling using Immersive Technologies
Storytelling using Immersive TechnologiesStorytelling using Immersive Technologies
Storytelling using Immersive TechnologiesKumar Ahir
 
Financing and Business Realities Meet Virtual Reality | Jurgen Goeldner
Financing and Business Realities Meet Virtual Reality | Jurgen GoeldnerFinancing and Business Realities Meet Virtual Reality | Jurgen Goeldner
Financing and Business Realities Meet Virtual Reality | Jurgen GoeldnerJessica Tams
 
Building New Realities in AEC with NVIDIA Quadro VR Webinar
Building New Realities in AEC with NVIDIA Quadro VR WebinarBuilding New Realities in AEC with NVIDIA Quadro VR Webinar
Building New Realities in AEC with NVIDIA Quadro VR WebinarNVIDIA
 
Enabling Mobile Virtual Reality Gaming | Nizar Romdan
Enabling Mobile Virtual Reality Gaming | Nizar RomdanEnabling Mobile Virtual Reality Gaming | Nizar Romdan
Enabling Mobile Virtual Reality Gaming | Nizar RomdanJessica Tams
 
Design for VR - workshop for IDF Bangalore
Design for VR - workshop for IDF BangaloreDesign for VR - workshop for IDF Bangalore
Design for VR - workshop for IDF BangaloreKumar Ahir
 
Portland vr-meetup-deck-final-shareable
Portland vr-meetup-deck-final-shareablePortland vr-meetup-deck-final-shareable
Portland vr-meetup-deck-final-shareableIntel® Software
 
Games Industry Adaptive Roadmap CGAT 2017
Games Industry Adaptive Roadmap CGAT 2017Games Industry Adaptive Roadmap CGAT 2017
Games Industry Adaptive Roadmap CGAT 2017David Wortley
 
Nintendo YOO - The next generation of Console Gaming
Nintendo YOO - The next generation of Console GamingNintendo YOO - The next generation of Console Gaming
Nintendo YOO - The next generation of Console GamingNintendoYoo
 
VR/AR introduction & state-of-the-art VR/AR prototyping
VR/AR introduction & state-of-the-art VR/AR prototypingVR/AR introduction & state-of-the-art VR/AR prototyping
VR/AR introduction & state-of-the-art VR/AR prototypingValentijn Destoop
 
Build Your Own VR Display Course - SIGGRAPH 2017: Part 1
Build Your Own VR Display Course - SIGGRAPH 2017: Part 1Build Your Own VR Display Course - SIGGRAPH 2017: Part 1
Build Your Own VR Display Course - SIGGRAPH 2017: Part 1StanfordComputationalImaging
 
コロンビア経営大学院にて講義
コロンビア経営大学院にて講義コロンビア経営大学院にて講義
コロンビア経営大学院にて講義Shinra_Technologies
 
Making Immersive Virtual Reality Possible in Mobile
Making Immersive Virtual Reality Possible in MobileMaking Immersive Virtual Reality Possible in Mobile
Making Immersive Virtual Reality Possible in MobileQualcomm Research
 
On-device Motion Tracking for Immersive VR
On-device Motion Tracking for Immersive VROn-device Motion Tracking for Immersive VR
On-device Motion Tracking for Immersive VRQualcomm Research
 
[Paper Presentation] FoveAR: Combining an Optically See-Through Near-Eye Disp...
[Paper Presentation] FoveAR: Combining an Optically See-Through Near-Eye Disp...[Paper Presentation] FoveAR: Combining an Optically See-Through Near-Eye Disp...
[Paper Presentation] FoveAR: Combining an Optically See-Through Near-Eye Disp...Pei-Hsuan (Ike) Tsai
 
Game engineering_Tappy plane - jiit13-14
Game engineering_Tappy plane - jiit13-14Game engineering_Tappy plane - jiit13-14
Game engineering_Tappy plane - jiit13-14Sidharth Sharma
 
Emerging technology presentation
Emerging  technology  presentationEmerging  technology  presentation
Emerging technology presentationSimanthakur43
 

Similar to Virtual Reality, Oculus Rift, Business Model (20)

Google Cardboard
Google CardboardGoogle Cardboard
Google Cardboard
 
Building the Matrix: Your First VR App (SVCC 2016)
Building the Matrix: Your First VR App (SVCC 2016)Building the Matrix: Your First VR App (SVCC 2016)
Building the Matrix: Your First VR App (SVCC 2016)
 
Ideaworks Game Studio Profile
Ideaworks Game Studio ProfileIdeaworks Game Studio Profile
Ideaworks Game Studio Profile
 
Storytelling using Immersive Technologies
Storytelling using Immersive TechnologiesStorytelling using Immersive Technologies
Storytelling using Immersive Technologies
 
Financing and Business Realities Meet Virtual Reality | Jurgen Goeldner
Financing and Business Realities Meet Virtual Reality | Jurgen GoeldnerFinancing and Business Realities Meet Virtual Reality | Jurgen Goeldner
Financing and Business Realities Meet Virtual Reality | Jurgen Goeldner
 
Building New Realities in AEC with NVIDIA Quadro VR Webinar
Building New Realities in AEC with NVIDIA Quadro VR WebinarBuilding New Realities in AEC with NVIDIA Quadro VR Webinar
Building New Realities in AEC with NVIDIA Quadro VR Webinar
 
Enabling Mobile Virtual Reality Gaming | Nizar Romdan
Enabling Mobile Virtual Reality Gaming | Nizar RomdanEnabling Mobile Virtual Reality Gaming | Nizar Romdan
Enabling Mobile Virtual Reality Gaming | Nizar Romdan
 
Design for VR - workshop for IDF Bangalore
Design for VR - workshop for IDF BangaloreDesign for VR - workshop for IDF Bangalore
Design for VR - workshop for IDF Bangalore
 
Portland vr-meetup-deck-final-shareable
Portland vr-meetup-deck-final-shareablePortland vr-meetup-deck-final-shareable
Portland vr-meetup-deck-final-shareable
 
Games Industry Adaptive Roadmap CGAT 2017
Games Industry Adaptive Roadmap CGAT 2017Games Industry Adaptive Roadmap CGAT 2017
Games Industry Adaptive Roadmap CGAT 2017
 
Nizar Romdhane, ARM
Nizar Romdhane, ARMNizar Romdhane, ARM
Nizar Romdhane, ARM
 
Nintendo YOO - The next generation of Console Gaming
Nintendo YOO - The next generation of Console GamingNintendo YOO - The next generation of Console Gaming
Nintendo YOO - The next generation of Console Gaming
 
VR/AR introduction & state-of-the-art VR/AR prototyping
VR/AR introduction & state-of-the-art VR/AR prototypingVR/AR introduction & state-of-the-art VR/AR prototyping
VR/AR introduction & state-of-the-art VR/AR prototyping
 
Build Your Own VR Display Course - SIGGRAPH 2017: Part 1
Build Your Own VR Display Course - SIGGRAPH 2017: Part 1Build Your Own VR Display Course - SIGGRAPH 2017: Part 1
Build Your Own VR Display Course - SIGGRAPH 2017: Part 1
 
コロンビア経営大学院にて講義
コロンビア経営大学院にて講義コロンビア経営大学院にて講義
コロンビア経営大学院にて講義
 
Making Immersive Virtual Reality Possible in Mobile
Making Immersive Virtual Reality Possible in MobileMaking Immersive Virtual Reality Possible in Mobile
Making Immersive Virtual Reality Possible in Mobile
 
On-device Motion Tracking for Immersive VR
On-device Motion Tracking for Immersive VROn-device Motion Tracking for Immersive VR
On-device Motion Tracking for Immersive VR
 
[Paper Presentation] FoveAR: Combining an Optically See-Through Near-Eye Disp...
[Paper Presentation] FoveAR: Combining an Optically See-Through Near-Eye Disp...[Paper Presentation] FoveAR: Combining an Optically See-Through Near-Eye Disp...
[Paper Presentation] FoveAR: Combining an Optically See-Through Near-Eye Disp...
 
Game engineering_Tappy plane - jiit13-14
Game engineering_Tappy plane - jiit13-14Game engineering_Tappy plane - jiit13-14
Game engineering_Tappy plane - jiit13-14
 
Emerging technology presentation
Emerging  technology  presentationEmerging  technology  presentation
Emerging technology presentation
 

More from Jeffrey Funk Business Models

Ola Cabs: Dominating India and Challenging Uber at Global Level
Ola Cabs: Dominating India and Challenging Uber at Global LevelOla Cabs: Dominating India and Challenging Uber at Global Level
Ola Cabs: Dominating India and Challenging Uber at Global LevelJeffrey Funk Business Models
 
Zomato: Transforming the Global Restaurant Business
Zomato: Transforming the Global Restaurant BusinessZomato: Transforming the Global Restaurant Business
Zomato: Transforming the Global Restaurant BusinessJeffrey Funk Business Models
 
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...Beyond Flipped Classrooms and MOOCs: The future of engineering and management...
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...Jeffrey Funk Business Models
 
Network Effects, Platforms, Standards, and Complex Systems
Network Effects, Platforms, Standards, and Complex SystemsNetwork Effects, Platforms, Standards, and Complex Systems
Network Effects, Platforms, Standards, and Complex Systems Jeffrey Funk Business Models
 
Value Propositions and Billion Dollar Startup Club
Value Propositions and Billion Dollar Startup ClubValue Propositions and Billion Dollar Startup Club
Value Propositions and Billion Dollar Startup ClubJeffrey Funk Business Models
 

More from Jeffrey Funk Business Models (20)

Online Education: A New Business Model
Online Education: A New Business ModelOnline Education: A New Business Model
Online Education: A New Business Model
 
Biz Models for High-Tech Products
Biz Models for High-Tech ProductsBiz Models for High-Tech Products
Biz Models for High-Tech Products
 
Ola Cabs: Dominating India and Challenging Uber at Global Level
Ola Cabs: Dominating India and Challenging Uber at Global LevelOla Cabs: Dominating India and Challenging Uber at Global Level
Ola Cabs: Dominating India and Challenging Uber at Global Level
 
PlugSurfing: global network of charging stations
PlugSurfing: global network of charging stationsPlugSurfing: global network of charging stations
PlugSurfing: global network of charging stations
 
Zomato: Transforming the Global Restaurant Business
Zomato: Transforming the Global Restaurant BusinessZomato: Transforming the Global Restaurant Business
Zomato: Transforming the Global Restaurant Business
 
Vishuo Biomedical
Vishuo BiomedicalVishuo Biomedical
Vishuo Biomedical
 
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...Beyond Flipped Classrooms and MOOCs: The future of engineering and management...
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...
 
Network Effects, Platforms, Standards, and Complex Systems
Network Effects, Platforms, Standards, and Complex SystemsNetwork Effects, Platforms, Standards, and Complex Systems
Network Effects, Platforms, Standards, and Complex Systems
 
Value Propositions and Billion Dollar Startup Club
Value Propositions and Billion Dollar Startup ClubValue Propositions and Billion Dollar Startup Club
Value Propositions and Billion Dollar Startup Club
 
Augmented Reality for Travel: A Business Model
Augmented Reality for Travel: A Business ModelAugmented Reality for Travel: A Business Model
Augmented Reality for Travel: A Business Model
 
Molecular Sensor from SCIO
Molecular Sensor from SCIOMolecular Sensor from SCIO
Molecular Sensor from SCIO
 
Garena Online
Garena OnlineGarena Online
Garena Online
 
Expliseat - World's Lightest Seats
Expliseat - World's Lightest SeatsExpliseat - World's Lightest Seats
Expliseat - World's Lightest Seats
 
Theranos Biz Model
Theranos Biz ModelTheranos Biz Model
Theranos Biz Model
 
Airware for Drones
Airware for DronesAirware for Drones
Airware for Drones
 
Wireless charging: Qualcomm and Bosch
Wireless charging: Qualcomm and BoschWireless charging: Qualcomm and Bosch
Wireless charging: Qualcomm and Bosch
 
Jasper, Internet of Things
Jasper, Internet of ThingsJasper, Internet of Things
Jasper, Internet of Things
 
Slack
SlackSlack
Slack
 
Oscar health insurance
Oscar health insuranceOscar health insurance
Oscar health insurance
 
Zenefits
Zenefits  Zenefits
Zenefits
 

Recently uploaded

How Generative AI Is Transforming Your Business | Byond Growth Insights | Apr...
How Generative AI Is Transforming Your Business | Byond Growth Insights | Apr...How Generative AI Is Transforming Your Business | Byond Growth Insights | Apr...
How Generative AI Is Transforming Your Business | Byond Growth Insights | Apr...Hector Del Castillo, CPM, CPMM
 
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...ssuserf63bd7
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfJamesConcepcion7
 
Supercharge Your eCommerce Stores-acowebs
Supercharge Your eCommerce Stores-acowebsSupercharge Your eCommerce Stores-acowebs
Supercharge Your eCommerce Stores-acowebsGOKUL JS
 
Welding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsWelding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsIndiaMART InterMESH Limited
 
Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesDoe Paoro
 
Entrepreneurship lessons in Philippines
Entrepreneurship lessons in  PhilippinesEntrepreneurship lessons in  Philippines
Entrepreneurship lessons in PhilippinesDavidSamuel525586
 
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Associazione Digital Days
 
Planetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifePlanetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifeBhavana Pujan Kendra
 
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...ssuserf63bd7
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterJamesConcepcion7
 
Introducing the Analogic framework for business planning applications
Introducing the Analogic framework for business planning applicationsIntroducing the Analogic framework for business planning applications
Introducing the Analogic framework for business planning applicationsKnowledgeSeed
 
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdfChris Skinner
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdfChris Skinner
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024Adnet Communications
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 
Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environmentelijahj01012
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxmbikashkanyari
 
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdftrending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdfMintel Group
 

Recently uploaded (20)

How Generative AI Is Transforming Your Business | Byond Growth Insights | Apr...
How Generative AI Is Transforming Your Business | Byond Growth Insights | Apr...How Generative AI Is Transforming Your Business | Byond Growth Insights | Apr...
How Generative AI Is Transforming Your Business | Byond Growth Insights | Apr...
 
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdf
 
Supercharge Your eCommerce Stores-acowebs
Supercharge Your eCommerce Stores-acowebsSupercharge Your eCommerce Stores-acowebs
Supercharge Your eCommerce Stores-acowebs
 
Welding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsWelding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan Dynamics
 
Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic Experiences
 
Entrepreneurship lessons in Philippines
Entrepreneurship lessons in  PhilippinesEntrepreneurship lessons in  Philippines
Entrepreneurship lessons in Philippines
 
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
 
Planetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifePlanetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in Life
 
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare Newsletter
 
Introducing the Analogic framework for business planning applications
Introducing the Analogic framework for business planning applicationsIntroducing the Analogic framework for business planning applications
Introducing the Analogic framework for business planning applications
 
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptxThe Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
 
Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environment
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
 
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdftrending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
 

Virtual Reality, Oculus Rift, Business Model

  • 1. VIRTUAL REALITY GAMING OCULUS RIFT BUSINESS MODEL Chua Ping Shiuan Priscilla Mariani William Suryadiputra Yeo Kiat Hwee
  • 2. AGENDA 1. Introduction to Oculus 2. Gaming ecosystem 3. Value proposition 4. Customer selection 5. Value capture 6. Scope of activities 7. Strategic control 8. Future Possibilities 2/ 42
  • 4. THE TECHNOLOGY: VIRTUAL REALITY Virtual reality  Use of computer modelling and simulation to enable a person to interact with an artificial three-dimensional visual or other sensory environment.  The illusion of being in the created environment (telepresence) is accomplished by motion sensors that pick up user’s movements... usually in real time. INTRODUCTION TO OCULUS 4/ 42
  • 7. THE PRODUCT: OCULUS RIFT  VR head-mounted display  Fast head tracking  Large Field of View  HD screen and 3D vision  Adjustable focus  Price: 300 USD INTRODUCTION TO OCULUS 7/ 42
  • 10. CURRENT ECOSYSTEM Product Oculus Rift End users Revenue Dev. Kit Revenue from Dev. Kit Sales + % Revenue from Game Sales in Oculus Share Games Revenue from Game Sales in Oculus Share Game Developers Game Console Manufacturers (Sony, Nintendo, Microsoft) GAMING ECOSYSTEM 11 / 42
  • 11. MARKET SITUATION  Current Competitors   Sony Playstation   Microsoft Xbox Nintendo Wii Rising competitors  Sony VR Headset  Zeiss Cinemizer OLED GAMING ECOSYSTEM 12 / 42
  • 12. FLAWS IN CURRENT DIRECTION ? ● Difficult to compete No suitable control consoles and the market has stiff competition between three large game console makers (Sony Playstation, Nintendo Wii, Microsoft Xbox) ● Technology can be easily copied Sony is in the process of developing its own VR kit ● Still limited games can be played using Oculus Will get even harder to attract game developers with the existing “incomplete” console GAMING ECOSYSTEM 13 / 42
  • 13. A BETTER ECOSYSTEM? Hardware licensing Product Console Makers Revenue Oculus Rift Sale Revenue % Game Sales Console Development Kit Oculus SDK Game Developers % Game Sales GAMING ECOSYSTEM End users Games Sale Revenue 14 / 42
  • 15. VIRTUAL REALITY  Immersive gaming  Allow new possibilities of gaming VALUE PROPOSITION 16 / 42
  • 16. STRATEGY CANVAS PC Gaming Console Gaming Motion Gaming VR Gaming Graphics Number of games VALUE PROPOSITION Intuitiveness Interactivity Immersiveness 17 / 42
  • 18. OCULUS RIFT “The magic that sets the Rift apart is immersive stereoscopic 3D rendering, a massive field of view, and ultra low latency head tracking.” - Palmer Luckey, Founder of Oculus VALUE PROPOSITION 19 / 42
  • 20. THE OCULUS RIFT ADVANTAGE  Better gaming experience whereby visual display is instinctive   Gamers can orientate their perspective base on head motion Create the impression of an immense environment within a small physical space  Large field of view  Oculus offers low latency, fast head-tracking performance  Head movement tracking without motion sickness  Adjustable focus for near- or far-sighted gamers VALUE PROPOSITION 21 / 42
  • 21. FOR CONSOLE MAKERS  Attract more gamers because of more immersive gaming experience  Charge higher price for VR games  Large hype and demand in the market    There is already much hype from developers, media $2,437,429 pledged of $250,000 goal in Kickstarter shows demand Guaranteed reputation    People in the company are experts in their field Oculus as a leader in the VR game industry Save time and money from R&D VALUE PROPOSITION 22 / 42
  • 22. TECHNICAL DISADVANTAGES  Lack of compatible games  Not enough content VALUE PROPOSITION 23 / 42
  • 24. TARGET SEGMENTS  Early adopters of novel game technologies  Have the latest games and consoles  Doesn’t mind lack of support  Age group 20-30 years old  Gamers who frequent gaming conventions  Mostly males  People with willingness and ability to spend on game, consoles and accessories.  Adventurous  Explore new gaming experiences  Loves to explore game worlds CUSTOMER SELECTION 25 / 42
  • 25. TARGET SEGMENTS  Gamers who enjoy first-person games  Racing  Shooting  Horror  Sandbox CUSTOMER SELECTION 26 / 42
  • 26. CONSOLE MAKERS Sony Microsoft  More exclusive games  Game developer itself (Sony Computer Entertainment)  More support for indie game developers  Better online experience –  Complements the motionmore players based games and motion controls  Complements the Kinect motion gaming  Offline multiplayer experience generate more  More first-person games demand of Oculus Rift (Halo, Gears of War – Xbox exclusive)  More interactive games - Developing its own VR Headset Conflict with Sony’s TV business CUSTOMER SELECTION - Less exclusive games Nintendo - Different customer segment 27 / 42
  • 27. CONSOLE MAKERS Sony Microsoft  More exclusive games  Game developer itself (Sony Computer Entertainment)  More support for indie game developers  Better online experience –  Complements the motionmore players based games and motion controls  Complements the Kinect motion gaming  Offline multiplayer experience generate more  More first-person games demand of Oculus Rift (Halo, Gears of War – Xbox exclusive)  More interactive games - Developing its own VR Headset Conflict with Sony’s TV business CUSTOMER SELECTION - Less exclusive games Nintendo - Different customer segment 28 / 42
  • 28. WHY NOT ON THE PC PLATFORM  Native PC controllers are not suitable for VR  Less game developers on PC  Less gamers on PC  Difficult to have exclusive contract in PC market CUSTOMER SELECTION 29 / 42
  • 30. NEW VALUE CAPTURE Hardware licensing Product Console Makers Revenue Oculus Rift Sale Revenue % Game Sales Console Development Kit Oculus SDK Game Developers % Game Sales VALUE CAPTURE End users Games Sale Revenue 31 / 42
  • 31. VALUE CAPTURE METHODS  Sources of revenue can be through the  Licensing of hardware to other game console makers  Percentage game sales from game developers VALUE CAPTURE 32 / 42
  • 33. SCOPE OF ACTIVITIES  Partnership with console makers   Distribution of Oculus SDK to game developers   Hardware license Provide SDK updates and support R&D In-house VR technology  Hardware  Software SCOPE OF ACTIVITIES 34 / 42
  • 36. STRATEGIC CONTROL  Exclusive contract with game console companies    Don’t allow partnership with other VR-related companies Continued usage of Oculus brand name Intellectual Property Rights  Patent  Trademark STRATEGIC CONTROL 37 / 42
  • 37. STRATEGIC CONTROL  Leverage on network effect    More game developers on Oculus platform ⇔ More Oculus gamers Create more community and online games Continuous in-house R&D   ensure leadership in VR HR management    Non-disclosure agreements (NDA) Non-competition contracts Work with complementary assets  Improving the game experience STRATEGIC CONTROL 38 / 42
  • 40. FUTURE POSSIBILITIES  Locked-in to one console manufacturer  Diversify into other markets   Theme parks: interactive cinemas, simulations and digital games  Training camps: military training, olympic training, pilot training, etc.  Schools: immersive learning experience  Property agents and interior designers: immersive design visualization   Cinemas: immersive movie experience Many others Further R&D  Full coverage of human vision span (i.e. peripheral vision) FUTURE POSSIBILITIES 41 / 42
  • 42.
  • 43. INDEX  Introduction to Oculus  Customer selection  Console Wars   Target Segments (1)  Revenue Model  Conventional Gaming  Target Segments (2)  Fourth Console  Virtual Reality Gaming <[ ]>  The Product  Console Makers  License Hardware Design   The Technology The Company  Why Not PC?  Acquisition  Microsoft Gaming ecosystem  Value capture  New Value Capture  Exclusive Games  Value Capture Methods  Backup Plan  Why Gaming  Latest Development   Current Situation  Market Situation  Flaws in Current Direction  Activities   Ocean Better Ecosystem  Material Flow Value proposition  Quote  Scope of activities Strategic control Immersive Gaming <[ ]>   Virtual Reality    Strategic Control (1)  Strategic Control (2) Latency Demonstration <[ ]>  Complementary Assets  The Oculus Rift Advantage  Compl. Assets <[ ]>  For Console Makers  Future Possibilities  Technical Disadvantages  Conclusion
  • 44. CONSOLE WARS  Currently at 8th Generation  Infamously led to death of SEGA as console maker   SEGA tried to compete graphics with Sony PS2 Long-time players Nintendo and Sony    Since 1990s after American Video Game Crash 1983 Microsoft is the only successful late entrant Tug-of-war to get Game Developers  Aim to strike exclusive deals with developers Appendix A
  • 45. REVENUE MODEL Profitability Stable Continuous Revenue For Large Game Companies For Independent Developers One-off Subscription % Game Sales Appendix B
  • 46. FOURTH CONSOLE  Sony developing their VR headset   Easily copied technology Competitive console market    Competing for games Timing is utmost importance Difficult to create network effect    Game developers need to learn to develop for a new console Consumer switching cost No suitable control system Appendix C
  • 47. HARDWARE DESIGN LICENSE  Retain operating software  Prevent console maker from imitating the full product Appendix D
  • 48. ACQUISITION NO  Free to penetrate other markets  Can still push for own console  Other markets potentially more profitable  High capital markets – Medical and Military  Large user base – Cinema and Theme Parks Appendix E
  • 49. WHY MICROSOFT NEEDS OCULUS  Competition with Sony   Graphics battle goes to the next level on VR Losing the exclusive games battle to Sony    Oculus Rift will attract game developers to build on VR Microsoft needs to dive into VR earlier than Sony to win Realise the importance of first-mover in gaming industry Appendix F
  • 50. XBOX One Below - Capybara Games Cobalt - Mojang D4: Dark Dreams Don't Die - Access Games Fable Legends - Lionhead Studios Fantasia: Music Evolved Halo 5 - 343 Industries Halo: Spartan Assault - Vanguard Entertainment / 343 Industries Kinect Sports Rivals - Rare LocoCycle Max: The Curse of Brotherhood Peggle 2 Plants vs. Zombies: Garden Warfare Project Spark - Team Dakota Quantum Break - Remedy Entertainment Sunset Overdrive - Insomniac Games Titanfall - Respawn Entertainment Xbox Fitness - Microsoft Studios Zoo Tycoon EXCLUSI VE GAMES XBOX ONE vs PS4 PLAYSTATION 4 Assault Android Cactus - Witch Beam Octodad: Dadliest Catch - Young Horses, Inc Basement Crawl - Bloober Team Onigiri - Cyberstep (free-to-play) Blast 'Em Bunnies - Nnooo Outlast - Red Barrels Studio Cosmic Star Heroine - Zeboyd Games Pavillion - Visiontrick Media CounterSpy - Dynamighty Phantom Breaker: Battle Grounds Overdrive - 5pb Daylight - Zombie Studios PlanetSide 2 - Sony Online Entertainment Deep Down - Capcom Pool Nation Extreme/FX - Cherry Pop Games Divekick - Iron Galaxy Primal Carnage: Genesis - Lukewarm Media Doki-Doki Universe - HumaNature Studios Project Phoenix - Creative Intelligence Arts Don't Starve - Klei Entertainment Project: Heart and Soul - Reach Game Studios Dragon's Prophet - Sony Online Entertainment (free-to-play) Putty Squad - System 3 Dream Club: Host Girls on Stage - Tamsoft QuickDraw - Greenfly Studios DriveClub - Evolution Studios Ray's the Dead - Ragtag Studios DUST 514 - CCP (free-to-play) Rime - Tequila Works Dynasty Warriors 8 w/ Xtreme Legends Bundle - Tecmo Koei Road Not Taken - Spry Fox Earth Defense Force Rocketbirds 2: Evolution - Ratloop Escape Plan - Fun Bits Interactive Rogue Legacy - Cellar Door Games Everquest Next - Sony Online Entertainment (free-to-play) Samurai Gunn - Maxistentialism Everybody's Gone to the Rapture - The Chinese Room / Sony Secret Ponchos - Switchblade Monkeys Santa Monica Fez - Polytron Corporation Shadow of the Beast - Heavy Spectrum Final Fantasy XIV: A Realm Reborn - Square Enix Sherlock Holmes: Crimes and Punishments - Frogwares Final Horizon - Eiconic Games SOMA - Frictional Games flOw - Thatgamecompany Sportsfriends - Die Gute Fabrik Galak-Z: The Dimensional 17-BIT Starbound - Chucklefish GlowTag - Greenfly Studios Super Exploding Zoo - Honeyslug Guns of Icarus Online - Muse Games Switch Galaxy Ultra - Atomicom H-Hour: World's Elite - SOF Studios The Binding of Isaac: Rebirth - Nicalis Helldivers - Arrowhead Studios The Idolm@ster - Namco Bandai Games Hohokum - Honeyslug The Order: 1886 - Ready at Dawn / Sony Santa Monica Hotline Miami 2: Wrong Number - Dennaton Games The Playroom - Sony Hyper Light Drifter - Heart Machine The Witness - Jonathan Blow Joysound Drive 2 - Xing Entertainment Tiny Brains - Spearhead Games Lily Bergamo - Grasshopper Manufacture Tottemo E Mahjong Plus - Arc System Works Mercenary Kings - Tribute Games Transistor - Supergiant Games MLB 14: The Show - Sony San Diego Velocity 2X - FuturLab Mobile Suit Gundam - Namco Bandai Games Volume - Mike Bithell Games N++ - Metanet Software War Thunder - Gaijin Entertainment (free-to-play) Natural Doctrine - Kadokawa Games Wasteland Kings - Vlambeer Nikoli no Puzzle 4: Sudoku - Hamster Yakuza Ishin - Sega Nuclear Throne - Vlambeer Source: http://www.neowin.net/news/list-of-xbox-one-and-playstation-4-exclusive-games Appendix G
  • 51. BACKUP PLAN  Develop own game console  Approach as many game developers as possible    A chance to create a new gaming experience Preferably first-person game developers Strike partnership with vital accessories    Razer Hydra – motion controller perfect for shooter games Virtuix Omni Treadmill Intensive marketing effort Appendix H
  • 52. WHY GAMING  Virtuality is something gamers have been wanting  More adapters of new tech  E.g. motion gaming caught on within less than a year (2011)  Large pool of tech enthusiasts   Large portion of adventurous individuals But, there is a danger of price buyers Appendix H
  • 54. Nov 11, 2013 Source: http://www.techradar.com/news/gaming/oc ulus-rift-creator-xbox-one-and-ps4-are-fartoo-limited-for-what-we-re-planning1198420 LATEST DEVELOPMENT "Consoles are too limited for what we want to do," he says. "We're trying to make the best virtual reality device in the world and we want to continue to innovate and upgrade every year - continue making progress internally - and whenever we make big jumps we want to push that to the public.” - Palmer Luckey, founder of Oculus Appendix I
  • 55. WHY OCULUS IS PUSHING  Dislikes the long life cycle of consoles    Prevent them from continuously improving Graphical performance bound by graphics processors (hardware) Eager to disrupt the video game business    Shorter life cycle of consoles Full-fledged VR gaming On the lookout for Valve  Steam Box and SteamOS Appendix I