V I R T U A L E N T E R T A I N M E N T A N D M A R K E T I N G

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Third, there is speculation that AR will ultimately replace VR. This speculation about AR has caused companies to not only take a cautious approach to producing VR content but, for some, to also skip VR altogether in order to work on AR technology. Google, for instance, has created the budget-priced Cardboard that allows for VR viewing with existing smartphones. However, the tech giant’s investments in AR startups Jaunt and Magic Leap suggest that it is also looking ahead to AR rather than focusing solely on VR. At present, AR represents a more advanced technology than VR, although current, less advanced AR technology than either Microsoft HoloLens or Magic Leap is easy to integrate into existing smartphones. Microsoft has even bypassed VR development to work on the HoloLens. This holographic technology represents a powerful form of AR, whose Windows Holographic software will work with any Windows 10 device. Therefore, like Sony’s Project Morpheus and Google Cardboard, the HoloLens headset will work with devices that people already own. Unlike these other headsets, Microsoft has been touting that HoloLens’s application extends beyond just entertainment. The HoloLens will reportedly be commercially released in late 2015. However, it is possible that, because AR systems require significantly more processing power than VR, other AR headsets will have a longer road to release. Its early entry into the marketplace and its recognizable brand name could allow Microsoft to have a monopoly on AR hardware and software. Still, with so much work being done in VR in advance of AR’s release, it is possible that AR will not so much replace VR as converge with it. That is, currently in-development VR technologies could integrate AR capabilities and vice-versa. Therefore, it is unlikely that VR will be a passing fad, and it is wise for entertainment companies and brands to work with VR technology. Those that work with the technology in its early stages will have the power to shape the direction the technology and its market take. 22
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V I R T U A L E N T E R T A I N M E N T A N D M A R K E T I N G

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