2016 will be the year of VR; VR headsets and VR-capable hardware and software will be readily available to the public in 2016, and people will begin to experience VR and explore its near-endless potential.

VR’s addressable market is primarily core games and 3D films, plus niche enterprise users. VR could have tens of millions of users, with hardware price points similar to console.

VR could grow new markets and cannibalize existing ones after the market really gets going in 2016.Another key development is the recent introduction of Windows 10. Windows 10 will make it easy to set up and have an incredible VR gaming experience. Microsoft’s free upgrade program has been extremely successful, with Windows 10 installed on more than 110 million devices since it was released; the company’s goal is to reach 1 billion Windows 10 devices by2018. There are now more than 200,000 registered Oculus Developer Center users, and VR content has been announced by Microsoft (Minecraft), Netflix, 20th Century Fox, CNN and many others.

We are already seeing evidence of this. Movie studios are partnering with VR vendors to bring content to market. News organizations are similarly working with VR companies to bring immersive experiences of news directly into the home, including live events. The stage is set for broad adoption of VR.

Virtual reality is coming and a majority of American consumers who've played any sort of video game have heard of the technology, according to a new study.

Research company Frank N. Magid Associates says that about 70% of U.S. consumers have played a game and that nearly a quarter of them said they're "very interested" in having a virtual reality experience in the home. Another 23% said they were interested.

Among the companies jumping into the VR business, the brand more consumers are aware of is Oculus Rift at 25%. Samsung VR Gear had awareness among 21% of consumers, PlayStation VR's awareness was at 20% and Google Cardboard registered 17% awareness.

The people who were interested in virtual reality said they were most interested(66%) in movie and TV content. That was followed by console/PC gaming at 59%, music videos at 41%, travel at 39% and sports at 38%.
"In these super early days of Virtual Reality, it is certain that many American consumers are primed to try this new  technology/media platform," said Mike Vorhaus, president of Magid Advisors. "I was impressed by the strong interest shown by consumers in not just gaming, but also many mainstream content areas."

The study was released at the Consumer Electronics Show in Las Veg 2016.Virtual reality has exited the “vapor” stage and is moving rapidly into consumer products. Big names in VR like Oculus Rift,PlayStation VR, and HTC Vive, generated a lot of buzz at CES. Moreover, for those who thought Google and its Cardboard viewer were not as committed to VR as their competitors, Google formed its own dedicated virtual reality division. The industry is expected to witness profound growth over the next five years, as more consumer devices hit the market.Forecast is that VR could hit $30 billion revenue by 2020.

VR technology is now poised to transform the entertainment industry by introducing new immersive experiences to mainstream consumers, providing significant opportunities for consumer electronics manufacturers, content creators as well as consumers.

Here are a few VR headlines from Consumer Electronics Show in Las Veg 2016:

*With Oculus headsets hitting the market, Fox is launching a Ridley Scott approved VR offshoot of his Golden Globe- winning space drama “The Martian”.

*HTC showcased the developer’s version of its new Vive Pre virtual reality system at CES 2016, Fortune reports. However, the company is giving away 7,000 of the new products to game makers and other creatives this month.
*In an interview with the BBC, Sony CEO Kaz Hirai said developers are working on 100 or more titles for its upcoming virtual reality headset.

*STRIVR Labs has launched a Fan Experience and VR Production division that is creating a fully immersive and interactive experience in partnership with Madison Square Garden and the New York Rangers.

*Osterhout Design Group (ODG) showed off the latest version of its R-7 augmented reality (AR) glasses at CES. Since 21st Century Fox recently acquired a minority stake in ODG, the two companies may take the product to the entertainment market, Multichannel News reported.

AR vs VR

VR and AR headsets both provide stereo 3D high definition video and audio, but there’s a big difference. VR is closed and fully immersive, while AR is open and partly immersive – you can see through and around it. Where VR puts users inside virtual worlds, immersing them, AR puts virtual things into users’ real worlds, augmenting them.

You might think this distinction is splitting hairs, but that difference could give AR the edge over not just VR, but the entire smartphone and tablet market. There are major implications for Apple, Google, Microsoft, Facebook and others.

VR is great for games and 3D films – that’s what it was designed for. However it is primarily a living room, office or seated experience, as you might bump into things if you walked down the street wearing a closed headset. Still a great technology with a ready and waiting user base of tens of millions amongst console, PC and MMO gamers, those who prefer 3D to 2D films, as well as niche enterprise users (e.g. medical, military, education). This has attracted a growing apps/games ecosystem around early players like Unity, Valve, Razer and others.

AR is great fun for games, but maybe not as much fun as VR when true immersion is required – think mobile versus console games. But that possible weakness for gamers is exactly why AR has the potential to play the same role in our lives as mobile phones with hundreds of millions of users. You could wear it anywhere, doing anything (well maybe not some things – that wouldn’t be polite). Where VR is like wearing a console on your face (Oculus), AR is like wearing a transparent mobile phone on it (Magic Leap, HoloLens).

Combining the visual fidelity of today’s feature films with the interactivity of video games, VR is creating a new medium of interactive experience. Like radio, TV and personal computers, VR offers a once-in-a-lifetime opportunity to radically change how we interact with information, content and entertainment.