Pressure Mounts for Xbox’s Missing VR Strategy as PS VR Revenue Tops $1 Billion

Megalith

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Following Sony’s announcement of 3 million PS VR units sold, industry pundits are beginning to really question why VR remains nonexistent on the Xbox console. Microsoft stated in E3 2016 the Xbox One would usher in “high-fidelity VR,” but years later, all that is left is Phil Spencer’s mixed messages about potential support on the Xbox One X. Being that the console runs W10 to some extent and Microsoft is pushing Mixed Reality, VR on the Xbox does seem inevitable, however.

In a candid interview in mid-2017, Xbox Head Phil Spencer suggested that Microsoft was staying away from VR on Xbox because they didn’t feel that the family room is a good place for tethered headsets. He figured at the time that the industry is “a few years away [from a wireless VR solution].” But if Microsoft is planning on waiting “a few years” for wireless tech before rolling out a VR offering on Xbox, they could be handing away a couple billion dollars in extra revenue to a competitor which already has a sizable lead.
 
let me hook my relatively inexpensive gear stuff and and ill spend more money on it. but to be honest, the wires arent the problem. its the cost.
 
Xbox one is already a year past its mid life refresh with the X1X (which is my first console since the 360 and PS3 i bought 10 years ago and i love it)
i just cant believe MS would put out new expensive hardware for something that most likely the OG and S Xbox cant even drive
 
Oh, you know MS has some secret VR project in the works. And it probably has a 50/50 chance of being the next Kinect.... initially praised then quickly forgotten.

I'm actually a little shocked they threw the Kinect under the bus so fast. If it had better titles it could have had a niche... at least get the little kids up and moving around anyway.
 
I’d be more interested to know how often that sold VR tech is being used. It’s one thing to sell it, and another to make continuing revenue so it makes business sense. I think VR is a fad for now. The tech has a long way to go.
 
Unfortunately PSVR is lame compared to it's PC counterparts. Doesn't matter to me how many units it's shipped, it matters how it performs. From my experience PSVR is good for what it is (I'm sticking with my Vive), but it's lacking so much and MS realizes this and is waiting for a better solution. MS doesn't have old peripherals lying around like Sony had with the PS camera and Move Controller. Both suck, but Sony had something to tack onto their VR system.
 
I'm actually a little shocked they threw the Kinect under the bus so fast. .

it seemed at the time it was just some military sector simulation hardware repackaged and sold in the consumer space to test how far they could push full home / body surveillance .. Surprisingly, people cared and that was a big reason it didn't sell. Nowadays people might accept the privacy invasion easier seen as lots of people have 'echo's' installed in their homes and various smart devices attached to their body. They just jumped the gun and your meant to tip toe totalitarianism or it gets real obvious...
 
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MS completely missed the boat and will have to either partner with someone (most likely) or start from scratch.
 
MS completely missed the boat and will have to either partner with someone (most likely) or start from scratch.

How so? There are many Windows Mixed Reality VR headsets out there, and they are compatible with SteamVR. Everything here says MS didn't miss anything, but a mediocre console VR experience. Like PSVR.
 
I’m surprised the PSVR is selling well, it sucks!

But either way MS is missing out on a cash cow.
 
When my kids were young, the Kinect was awesome for the Xbox 360. They used to play the Just Dance games and I found a free game that was inspired by Rampage - they smashed buildings, hit helicopters, etc. All the young kids used to love that games.
Now the 360 is collecting dust. The Kinect hasn't been powered on in 3-4 years?
Curious to see how Microsoft responds to Sony PS4. They are selling well, so you'd think MSFT could enter the crowd.
 
There might be 3 million people who tried VR on PS4, not sure if it will last. (a lot of friends just dropped it after a few months, got bored). At the moment I'm seeing it as a fad. MS will probably try to stick to their initial opinion about VR. What I think they'll do instad is release a consumer-friendly hololens+ kinect (especially with the new kinect performing on realtime, or-near realtime).
 
The bottom line is VR is only as compelling as the experiences it already has or is coming out in the near future,

I still say its a chicken or the egg issue with VR, no one will spend money if that money isn't warranted. Both developer and consumer.

1- OS with a specific GUI for VR and acceptance of multiple ways to do tracking and account for mix and matched hardware.

2- Wires

3-Cost(people will pay 1-4k for a TV or Apple product but god forbid its on something else)

4- Compelling non-gimmicky Enterprise/Workstation/Gaming applications.

5- High pixel density refresh rate screens.

6- Integration of social media applications.

I think The Kinect can be used as a great room scale tracking unit in conjunction with a decent VR headset for the X-Box platform or even windows, but it would probably be better if the half measures were gone and someone introduced an actual VR console solely dedicated to VR experiences.
 
There is no serious reason Windows Mixed Reality cannot be integrated even if it limits to seated mode at first... at least on the X. Except for maybe cable lengths. Can they honestly not even cobble together an adapter to alleviate that?
 
I was going to say the initial 5 million Xbox One sales didn't help the Kinect but I guess one could argue people felt forced to buy it versus the PSVR being an intentional purchase. Still, I think the 3 million PSVR that sold is not enough 'mass' for a ton of developers to jump on the VR boat. It still appears to be a chicken and egg problem. Then you add what people are saying on the quality of the experience versus higher end hardware like Oculus or Vive and it looks like Microsoft may be more wise in holding off until better hardware reaches a lower price tier.
 
it seemed at the time it was just some military sector simulation hardware repackaged and sold in the consumer space to test how far they could push full home / body surveillance .. Surprisingly, people cared and that was a big reason it didn't sell. Nowadays people might accept the privacy invasion easier seen as lots of people have 'echo's' installed in their homes and various smart devices attached to their body. They just jumped the gun and your meant to tip toe totalitarianism or it gets real obvious...

What are you on about?
https://www.bbc.co.uk/news/business-12697975

Kinnect sold over 15 million units in it's first year, is approximately the same price as the PSVR after adjusting for inflation, and is still used outside the gaming industry. AFAIK Microsoft stopped producing the Kinnect as the company that made the hardware was purchased by Apple.

But, yeah, compare the PSVR to the Kinnect. In over a year it's barely hit 3 million units. At $200 a pop that's $600 million of the billion in revenue it's generated meaning that people are only spending on average $120 on games after they buy it. That's approximately 2-3 games. That's a crappy retention rate.

VR isn't ready yet, Phil Spencer has said as much, and maybe it will be next generation. the windows headsets being driven by much more capable machines are "alright" I have a Samsung Odyssey I'm using currently and even that isn't quite there yet.
 
I found a free game that was inspired by Rampage - they smashed buildings, hit helicopters, etc.

Kinect party was an excellent example of the Kinect on 360. I was very disappointed that they didn't at least make that game for the One. The kinect on the One was so much better tracking wise, especially if they could have gone past 2 players on screen at once.
 
Kinnect sold over 15 million units in it's first year,

separately or bundled. are they global sales.


big reason it didn't sell

Consumers didn't like Kinect for various reasons, im not saying the spook factor was the only reason, although It was heavily talked about at the time online and that probably had an impact. At the moment the uptake for VR is low because in consumers eyes it's not ready yet.


VR isn't ready yet, Phil Spencer has said as much, and maybe it will be next generation.

agreed, it's not quite there for consoles. Console have probably the best shot at packaging a plug n play solution right now.
 
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