In 2016, China's virtual reality hardware market will reach 2.08 billion yuan.

According to foreign media reports, as the virtual reality market really began to grow, 2016 became China's virtual reality "first year." Market research firm Niko Partners estimates that China's virtual reality hardware market will reach 2.08 billion yuan this year, and mobile virtual reality is the undisputed leader (by sales). Compared with the West, virtual reality is more popular in China. Chinese consumers show a willingness to purchase virtual reality devices or experiences, and Western consumers are much less interested in virtual reality.

What drives consumer demand is the type of product that can be purchased, but Chinese consumers can go to the “experience point” to experience virtual reality, which is lacking in Western consumers. A survey conducted by Niko Partners earlier this year showed that more than half of Chinese gamers are interested in virtual reality, and about 30% are willing to spend $1,389 to buy virtual reality devices. Considering that China's per capita annual income is about 83,000 yuan, this is a huge sum.

In early 2016, Niko Partners found that there were 200 virtual/augmented reality startups in China, nearly 200 companies involved in virtual/augmented reality, and new virtual/augmented reality companies emerged every month. These investments drove a surge in virtual reality hardware sales this year, and software sales growth was relatively low. Although the development and sales of virtual reality software have been slow in the past, it will start to grow rapidly in the next two years.

Affected by multiple factors, mobile virtual reality hardware is more popular than high-end PC/game console virtual reality hardware. Mobile phone manufacturers such as Xiaomi and Huawei, as well as Pico VR, Storm Mirror and Deepoon, will sell mobile virtual reality devices through online and offline channels. Mobile virtual reality heads are not expensive. Tmall Mall reported that the majority of the 300,000 mobile virtual reality heads sold in the Double 11 Shopping Festival, the price is less than 30 yuan, similar to the price of Google Cardboard in the Western market. These mobile virtual reality headsets are simple and easy to use, support many existing smartphones, and are more attractive than the more expensive high-end virtual reality heads.

Due to the high price for consumers, the high-end PC virtual reality is mainly aimed at the enterprise market. For example, HTC Vive sells for 6946 yuan in China and requires a high-end PC with a price of $1,000 to work with it.

At present, there are more than 3,000 virtual reality Internet cafes and experience stores in China. Users can play a 30-minute game for 56 yuan and experience a wonderful virtual reality experience. HTC recently opened a new experience store in Shenzhen, and plans to open more experience stores in the future (some say that there are plans to open 50, others say it is 1000). Leading Internet cafe management software provider has released a version of software that supports virtual reality headsets. Virtual reality game content is another opportunity for virtual reality Internet cafes to increase revenue and diversify revenue.

Chinese manufacturers are actively investing in game-oriented mobile and high-end virtual reality technologies. Alibaba, Xiaomi, HTC, Touch Technology, Shanda and Tencent are some of the earliest well-known Chinese technology companies investing in virtual reality technology. For the development of virtual/reality technology in the digital game industry in China (and globally), next year will definitely be exciting, and the virtual reality market is expected to continue to grow strongly in the next few years.

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