The future is here, and we’re excited to be a part of it.
Today, virtual and augmented reality has been a topic of focus for us and many other investors, as both the hardware and software layers continue to be built out. As we look ahead, use cases are a critical part of the story.
According to Perkins Cole, most people think virtual reality (VR) / augmented reality (AR) use cases are primarily in gaming (61%), followed by healthcare applications and education.
Investment Implications of Virtual Reality Adoption
When the first iPhone launched, the functionality was limited. The App Store primarily housed simple apps and games. But as consumers adopted smartphones, developers flocked to the ecosystem, and the use cases (and value) exploded.
The same thing is happening today with VR and AR. Use cases today are still fairly limited to gaming and interactive entertainment. However, it’s interesting to think of what they might be in the future as the ecosystem gets built out.
Facebook has this vision and is positioning themselves to be the underlying layer of this new era of Virtual Reality. Earlier this week, the company reported earnings (see our notes here). The company’s “other” segment grew 195% year/year primarily driven by Quest 2 sales. They also announced their new name Meta. In his keynote address, Mark Zuckerberg shared his vision of the future and the potential applications of VR/AR down the road.
This has been a long time coming, yet we are still early in the story. As we look ahead, we’re excited to see the continued investment in AR/VR and what this means for consumers and the world.
The author or his firm may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.