Presented at VRX Europe May 11, 2017 With 6.3M high-end headsets and over 80M Google Cardboards shipped last year, roughly 70% of VR innovators agree that growth was right on track. As with any early stage technology, there is a slow start that quickly amps up, putting VR in line with media's historical narrative. Increasing innovation, accessibility and quality content will lead the industry to reach just under $40 billion by 2020, up from $1.8B in 2016. Market transparency is important now more than ever since companies are staking billions of dollars on the potential of this nascent and nebulous medium. Join Stephanie Llamas, SuperData's VP of Research and Strategy, as we look back on consumer VR’s flagship year, and look forward to the opportunities of today and beyond. Learn what questions you need to be asking and how to use those answers to make big decisions. Walk away with hard data including worldwide VR revenue by platform, year-over-year comparisons and sales projections, as well as insights on what will drive consumer adoption, and the industry at large going forward.

1. The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
THE STATE OF THE VR INDUSTRY
& THE VIRTUAL CONSUMER
VRX Europe, May 2017
@stephinaners | @VR_Intelligence | #VRXEurope

2. 2
The SuperData Arcade and Player Profile
are the world's most robust and only
cross-plaIorm business intelligence tools
on the worldwide games market.
The Arcade and Player Profile allow users
to:
• Gain a comprehensive overview of the digital games
market, across plaIorms, Mtles and markets.
• Learn beyond the numbers, seeing what players like and
why.
• Create custom queries and segmentaAon across all data and
export to .csv or PDF format for full analyMcal control and
presentaMons.
• Spot opportuniAes early and find out when key compeMtors
struggle to maintain conversion rates and average spending.
• AutomaAcally receive custom data pulls by email as soon as
updates are available.
To arrange a demo, contact Sam Barberie at
sam@superdataresearch.com.
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

3. 3
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
The VR Data Network is the first industry collaboration to quantify and validate the global VR
market.
• Partners include headset makers, developers and ad networks
• Partners get ongoing insights and data to improve strategy
• Reviewing applications now
To apply, visit www.superdataresearch.com/superdata-vr-data-network/
VR Data Network
@stephinaners | @VR_Intelligence | #VRXEurope

4. 4
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
STEPHANIE LLAMAS
VP, Research & Strategy
Head of Immersive Tech Insights
stephanie@superdataresearch.com
@stephinaners
@VR_Intelligence
#VRXEurope

5. THE VIRTUAL REALITY INDUSTRY:
PAST, PRESENT AND FUTURE
5
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
@stephinaners | @VR_Intelligence | #VRXEurope

6. 2016 2017 2018 2019 2020
$1.8B
$4.9B
Consumer software/services
Hardware
6
Virtual Reality consumer revenue by segment: 2016-2020E
Billions of USD, worldwide
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

7. 2016 2017 2018 2019 2020
$1.8B
$4.9B
Consumer software/services
Hardware
7
Virtual Reality consumer revenue by segment: 2016-2020E
Billions of USD, worldwide
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

8. 2016 2017 2018 2019 2020
$1.8B
$4.9B
Consumer software/services
Hardware
Total earnings will rise
168% from 2016 to 2017.
8
Virtual Reality consumer revenue by segment: 2016-2020E
Billions of USD, worldwide
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

9. The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights
9
@stephinaners | @VR_Intelligence | #VRXEurope

10. The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights
10
25%
50%
75%
100%
1960 1970 1980 1990 2000 2010 2020E
Color TV
VCR
PC
Internet
Cell phone
MAJOR U.S. TECHNOLOGY ADOPTION RATES BY HOUSEHOLD
@stephinaners | @VR_Intelligence | #VRXEurope

11. The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights
11
25%
50%
75%
100%
1960 1970 1980 1990 2000 2010 2020E
MAJOR U.S. TECHNOLOGY ADOPTION RATES BY HOUSEHOLD
VR
@stephinaners | @VR_Intelligence | #VRXEurope

12. 2016 2017 2018 2019 2020
Total earnings will rise
168% from 2016 to 2017.
VR soLware revenue will
reach $20B by 2020,
surpassing hardware
earnings for the first Pme.
$1.8B
$4.9B
12
$13.6B
$23.4B
$37.7B
Consumer software/services
Hardware
Virtual Reality consumer revenue by segment: 2016-2020E
Billions of USD, worldwide
Gap of
disappointment
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

13. Oculus Ri]
HTC Vive
PlayStaMon VR
Samsung Gear VR
Google Daydream 0.3M
4.5M
0.8M
0.4M
0.2M
13
Sell-through shipments by headset: 2016
Millions, worldwide
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope
6.3M
2016

14. Oculus Ri]
HTC Vive
PlayStaMon VR
Samsung Gear VR
Google Daydream 0.3M
4.5M
0.8M
0.4M
0.2M
6.3M
2016
14
Sell-through shipments by headset: 2016
Millions, worldwide
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

15. 15
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

16. 16
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
BARRIER TO ENTRY:
PROACTIVE
CONSUMER
@stephinaners | @VR_Intelligence | #VRXEurope

17. 17
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
BARRIER TO ENTRY:
KNOWLEDGABLE
ASSISTANTS
@stephinaners | @VR_Intelligence | #VRXEurope

18. 18
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
Google
Daydream
Gear VR Gear VR 2 PSVR Oculus Ri] HTC Vive
€899
€499
€379
€129
€58€69
+PC
= €1500+
total
+full rig
+PC
= €1000+
total
+PS4
= €679+
total
BARRIER TO ENTRY:
@stephinaners | @VR_Intelligence | #VRXEurope

19. Oculus Ri]
HTC Vive
PlayStaMon VR
Samsung Gear VR
Google Daydream 0.3M
4.5M
0.8M
0.4M
0.2M
6.3M
2016
170K
781K
375K
95K
64K
19
Sell-through shipments by headset: 2016 vs. 2017E
Millions, worldwide
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
Q1 2017
1.5M
@stephinaners | @VR_Intelligence | #VRXEurope

20. 6.3M
2016
Oculus Ri]
HTC Vive
PlayStaMon VR
Samsung Gear VR
Google Daydream
3.5M
6.7M
2.6M
0.6M
0.3M
20
Sell-through shipments by headset: 2016 vs. 2017E
Millions, worldwide
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope
2017
13.7M

21. Gaming has become the
primary use for VR, but
LocaPon-based
experiences are gaining
tracPon.
21
Consumer so^ware revenue: 2016-2020E
Billions of USD, worldwide
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
Other
16%
Video
content
9%
LocaPon-based
33%
Games
42%
2016
$331M
Other
19%
Video
content
11%
LocaPon-based
18%
Games
51%
2017
$1.3B
@stephinaners | @VR_Intelligence | #VRXEurope

22. Gaming has become the
primary use for VR, but
LocaPon-based
experiences are gaining
tracPon.
22
Consumer so^ware revenue: 2016-2020E
Billions of USD, worldwide
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
Other
16%
Video
content
9%
LocaPon-based
33%
Games
42%
2016
$331M
Other
19%
Video
content
11%
LocaPon-based
18%
Games
51%
2017
$1.3B
@stephinaners | @VR_Intelligence | #VRXEurope

23. Gaming has become the
primary use for VR, but
LocaPon-based
experiences are gaining
tracPon.
Video content will become
the second highest-
grossing soLware segment
by 2020, earning $3.9B.
23
Consumer so^ware revenue: 2016-2020E
Billions of USD, worldwide
The Virtual Market
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
Other
16%
Video
content
9%
LocaPon-based
33%
Games
42%
2016
$331M
Other
16%
A_racPons
8%
InteracPve
entertainment
14%
Social media
16%
Video
content
19%
Games
27%
2020
$19.9B
Other
19%
Video
content
11%
LocaPon-based
18%
Games
51%
2017
$1.3B
@stephinaners | @VR_Intelligence | #VRXEurope

24. THE VIRTUAL CONSUMER
24
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
@stephinaners | @VR_Intelligence | #VRXEurope

25. The move to digital
Cord-cu`ers and cord-nevers
Annual percentage of US households: 2014—2019
0%
10%
20%
30%
25
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights @stephinaners | @VR_Intelligence | #VRXEurope

26. The move to digital
Revenue share of full game downloads
Monthly percentage of US retail sales: 2012—2015
Source: publicly reported figures by NPD, SuperData Research.
0%
10%
20%
30%
40%
26
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights @stephinaners | @VR_Intelligence | #VRXEurope

27. 27
Females
35+
14%
Males
35+
23%
Females
18-34
26%
Males
18-34
37%U.S. VR
audience
(18+)
The Immersed
Console Player
The Engaged
Mobile Crusader
The High-Earning
Virtual Tourist
The Starstruck
Explorer
The Virtual Consumer
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

28. 28
The Immersed
Console Player
Male Millennials age 18-24
The Virtual Consumer
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

29. 29
The Immersed
Console Player
Male Millennials age 18-24
The Starstruck
Explorer
Female Millennials age 18-24
The Virtual Consumer
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

30. 30
The Immersed
Console Player
Male Millennials age 18-24
The Starstruck
Explorer
Female Millennials age 18-24
The High-Earning
Virtual Tourist
Males 35 years old and over
The Virtual Consumer
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

31. 31
The Immersed
Console Player
Male Millennials age 18-24
The Starstruck
Explorer
Female Millennials age 18-24
The High-Earning
Virtual Tourist
Males 35 years old and over
The Engaged Mobile
Crusader
Females 35 years old and over
The Virtual Consumer
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

32. 32
The Virtual Consumer
Video games Films/TV Live sports Live music InteracTve
learning
Travel to real-life
desTnaTons
Social Online
shopping
13%16%18%19%20%20%
43%
65%
What VR users plan to do in VR
U.S. VR users 18+ years old
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

33. 33
Males
18-34
Females
18-34
Males
35+
Females
35+
$25$28
$22
$43
How much male millennials spend each
month on VR content
Direct ROI
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved. @stephinaners | @VR_Intelligence | #VRXEurope

34. AUGMENTED + MIXED REALITY
34
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights reserved.
@stephinaners | @VR_Intelligence | #VRXEurope

35. $37.7B
$23.4B
$13.6B
$4.9B
$1.8B
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights
35
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
$6.6B
$5.0B
$3.4B
$1.0B$1.0B
$19.9B
$7.4B
$1.9B
$.4B$.0B
Virtual Reality vs. Augmented Reality vs. Mixed Reality
Immersive technology consumer revenue by plaborm: 2016-2020E
Billions of USD, worldwide
The Immersive Market

36. The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights
36
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights

37. The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights
37

38. 38
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights

39. 39
The Virtual Consumer, VRX Europe | © 2017 SuperData Research. All rights
THANKS!
@StephiNaners
#VRXEurope
www.superdataresearch.com