The console war has been a very one sided one this time around with Sony Corp.’s (NYSE:SNE) PlayStation 4 having a very strong lead compared to Microsoft Corporation’s (NASDAQ:MSFT) Xbox One and Nintendo Co. Ltd.’s (OTCMKTS:NTDOY) Wii U which have been sitting at a distant second and third position respectively. Recently, at Morgan Stanley Technology’s Media and Telecom Conference, the CFO of Electronic Arts Inc.’s (NASDAQ:EA), Blake Jorgensen, talked about Virtual Reality and EA’s view on the whole Virtual Reality bandwagon.
Jorgensen said that EA is ready to make games based on the new VR technology and that they have been gradually investing in technologies over the last five years to equip themselves to be able to make games based on VR. He said that although they are ready to go for VR, they are experimenting with small games and are testing them with “VR players” in order to fully assess the potential of the VR market. He said that the main issue EA has been facing is that they need to work on building a viable market for Virtual Reality before they make the decision of investing “50 to 100 million dollars” on a AAA title for VR. He said that the market for Xbox One and PlayStation 4 consoles is sitting at “60 to 80 million” right now and if you add the older generation consoles on top of it, the total market comes to somewhere around the 150 million mark. Jorgensen added that while they are prepared for VR and think that the market is great, it is going to be a few years before there is a “substantial market” for it and that they are going to be waiting for it when that happens.
Well there you have it. EA thinks that Virtual Reality has potential but has not yet reached maturity. It is going to take a few years before the technology is widely adopted by the industry. And to be very honest, we agree. Virtual Reality is at its infancy right now with all of the offerings on the VR market being very expensive. Only enthusiasts are going to jump into the world of VR and it is going to be a few years before we see it being adopted into the mainstream.
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