The virtual reality market is heating up

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Samsung announced several updates to its smartphone-powered Gear VR headset during a press conference in New York on Tuesday.

The revamped headset — which includes a new touchpad, USB Type-C compatibility, a wider field of view, and a darker interior finish — is aimed at offering a more immersive user experience. The updates to the headset demonstrate the importance of getting a device on the market early. Samsung has been able to assess the device's shortcomings and make adjustments to optimize the user experience; vendors that haven't yet released their headsets will have to play catch-up. 

The VR market is on the cusp of its first truly important year. VR technology has been around for many years, but 2016 is the year we'll see it make waves in the consumer-facing market. Here's a roundup of the most important announcements from this week: 

• Google is expanding on its philosophy and goals for Daydream. The company is preparing to launch Daydream, its new VR platform for Android-powered mobile devices, this fall. A part of Google's strategy is to build up its portfolio of VR games and make them as exciting and broadly appealing as possible, Google’s Strategic Lead for Games Jamil Moledina told audiences at the GamesBeat 2016 conference on Monday. Already, a slew of developers have signed up to support Daydream, including Epic Games, Ubisoft, Electronic Arts, and CCP Games. Daydream is Google’s most concerted effort yet to tap into the growing VR market, which is projected to develop into an $80 billion software and hardware opportunity by 2025, according to Goldman Sachs. 
• Sony PlayStation VR is changing tact, aiming instead to take on gaming consoles, rather than Oculus Rift and HTC Vive. The company released system and hardware requirement information for its headset, slated for an October launch, notes Forbes. Of note is the requirement that users have access to 60 square feet of free space for an optimal gaming experience. Sony’s decision to target the gaming market makes sense, considering that’s where a majority of its audience is: There are more than 35 million PS4 owners globally. By positioning its VR headset as an addition to the PS4, Sony is ridding itself of the need to compete with other VR makers already on the market.
• Xiaomi is planning to launch its Daydream VR headset on August 4. It’s likely that the Chinese smartphone manufacturer, known for its inexpensive handsets, will offer the headset for at a low cost as well, according to Wareable. This could help growth of VR products in China, where a predominant segment of Xiaomi’s user base is located. However, the exclusion of Google Play in China could restrict the company’s content there, particularly from YouTube, which has been integral in producing VR video for many smartphone-powered devices.

The tech industry has promoted the prospect of VR for the past few decades. But only now, with headsets backed by big names like Sony and Facebook, is VR finally becoming a concrete product with mass market potential. While VR technology is largely associated with the gaming industry, the platform offers a new set of content opportunities in entertainment, advertising, and more.

But where is it all going?

Margaret Boland, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on virtual reality content that examines how various VR headset categories will shape VR content development and looks at the trajectory for mobile gaming revenues to get a sense of how spending on VR content might develop. The report also lays out what types of content users and developers can expect on VR platforms, including gaming, video entertainment, and advertising.

Here are some key takeaways from the report:

• VR headset manufacturers are driving both the development and distribution of VR content by investing significant technical and monetary resources in developers, in an effort to build up an exclusive content library.
• High demand for VR headsets by mobile and console gamers will fuel demand for VR content. The VR content market will take an increasing portion of the mobile gaming software industry.
• Beyond gaming, VR video entertainment will remain short form until demand for VR headsets increases.
• Ads featured on VR headsets will likely have higher view-through rates than standard video ad spots.
• Other industries are also beginning to experiment with VR content. Travel companies, publishers, e-commerce merchants, and social platforms are beginning to see potential in this new category.
• VR content faces major hurdles that could keep developers from investing: The VR experience must be good enough for people to take up the devices. In addition, developers need to know that a sufficient user base exists to be worthy of the resource investment in VR content.

In full, the report:

• Provides a breakdown of each type of VR headset, what platforms they run on, and how content will differ for each.
• Includes estimates for global VR headset shipments by category.
• Includes a mobile gaming forecast to give a sense of the most important market that will drive spending on VR content in the next five years.
• Lays out what other industries are developing VR programs.
• Discusses some of the potential barriers that could dissuade developers from investing in VR content.

To get your copy of this invaluable guide to the VR universe, choose one of these options:

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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the world of VR.