Jason Rubin, deputy director of the Oculus content department, recently stated that "In the Oculus Store alone, several VR games have received more than one million dollars in revenue." Content developers may be cheering and chatting, it seems that the spring of VR content has arrived. However, careful analysis of the current situation may be premature in spring.
Soaring user base
In the sales of VR equipment released by SuperData in the first quarter of 2017, Oculus Rift bottomed out with sales of 64,000 units, slightly lower than the sales of 95,000 units of HTC Vive. Compared to the sales volume of 375,000 PS VRs, this figure is not optimistic. While the number of sales often means the number of users, the consumption of VR content is closely related to the user base owned by Oculus.
The recent drop in the price of the Oculus Rift by 200 U.S. dollars is to drive the heartbeat of consumers. Jason Rubin once said that "we will promote the popularization of hardware from the price." While madly cutting prices to win consumers' cheers, its user base is undoubtedly continuing to soar. But it is worth noting that this is not the first time Oculus cuts prices.
As early as Zenimax complained that Oculus stole trade secrets, Oculus began a price reduction sales strategy, directly reducing the price of Rift heads and Touch handles by $100. Since then, the price of its sensor has dropped to 59 US dollars. As a result of the price reduction, the room-scale experience would only cost $657 (a sensor will be included when purchasing the Rift head and Touch handles, but two sensors are required to achieve a room-scale experience). Compared to the HTC Vive, which sticks to the $798 price point, Oculus is more attractive in terms of price. But the shop also began to spread, "Oculus lowers prices to clear inventory in response to the crisis brought about by Zenimax complaints."
Reducing the price of US$200 once again has already made the Rift head +Touch handle available for only $398. Oculus chose to lower the selling price at this time. The official claim is based on the rationale that "any Rift player has enough content to play at any time." The content is already enough, so we need to further encourage users to purchase hardware devices.
With such a vigorous discount, there may be a surge in the number of users. But we can't ignore another fact: Zenimax is like a time bomb around Oculus. Zenimax, which had previously received $500 million in compensation, is currently seeking courtroom sales for Rift and related hardware and software, or Facebook paying 20% ​​of its hardware royalties for the next 10 years. Even before the 500 million U.S. dollar fine, they were still not enough. This was "not enough to make up for the sustained losses they suffered." They tried to get another 500 million yuan penalty.
Oculus hardware seems to have become a hot potato. It seems that Oculus has been able to clear its inventory through price cuts. However, Oculus, who is backed by Facebook, will not easily give up this platform. This is related to huge commercial interests and is related to the future development of Facebook. The continued growth of the user base has allowed Oculus to think about the next strategic layout.
Millions of dollars may be a glass of water
Jason Rubin said that there are several VR games in the Oculus Store that currently have revenues in excess of a million dollars. However, it did not mention which games actually achieved more than 1 million US dollars. Since Oculus's official data is non-public, we are also not aware of these games that have a revenue of more than one million US dollars. What is the cost of R&D?
However, the author speculated that if high-quality content can not achieve more than one million US dollars of revenue, then other content may also be difficult to achieve. In high quality content, games like Robo Recall may be included. Epic Games created this game by employing 15 full-time staff, working with 6 outsourcers responsible for game programming and evaluation, and acquiring some outsourced audio and art assistance.
The game industry's career guide points out that game developers' wages are roughly 70,000-130,000 dollars per year. In order to retain top talent, Epic Games may be between 13-15 million US dollars. Outsourcing can save money to a certain extent, assuming 125,000 outsourcers. It will cost another 750,000 U.S. dollars in assistance. Each person has the cost of a VR-Ready PC and Oculus hardware device. A total of about 3.8 million US dollars. This fee has not yet been added to the funds spent for content marketing.
The actual revenue of 1 million US dollars, compared with the content development costs of 3.8 million US dollars, is obviously a drop in the bucket. Of course, what Jason Rubin said about more than $1 million in revenue may not be $1 million. However, Steam VR's hottest job simulator, the highest-income, also received more than $2 million in revenue. Even if this amount exceeds some, the development cost of content to cover 3.8 million US dollars is still a lot of difference. The situation of content developers can be imagined.
SteamVR top revenue rankings
Work Simulator
The low revenue under high costs is obviously not the situation that content developers want to see. The current status quo also shows us that, in terms of content development, it is not suitable to create some time-consuming and laborious VR games that invest huge amounts of money. However, for long-term development, it is bound to change this situation.
Oculus Content Investment Direction Transfer
As early as last year's Oculus Connect3 conference, Zuckerberg said that he will once again come up with 250 million US dollars for investment in VR content. After revealing that "a variety of VR games have received over a million dollars in revenue," they revealed that they are trying to make changes.
"We used to invest $100,000 and $200,000 in the past. But we don't need to invest too much in this kind of investment now, because they can benefit from this user base." This also means that they had previously been funded by Oculus. Some developers will lose external funding. Newly entered small and medium-sized developers will be on the same starting line as previous content developers. In Oculus's view, the current user base has been able to use the content developers who are delving into this market to profit.
So where will this part of the subsidy funds be used? Oculus said that it will shift to more big-produced content, and investment will also be concentrated between $1 million and $5 million. And Robo Recall is one of them. Games of this size often mean a greater risk to developers because no one can ensure that they can achieve a balance of payments. If there is no funding from Oculus, games like Robo Recall are not suitable for being born in this market.
Robo Recall
Zero mirror view
Oculus may be aware of the way this VR concept is predicated. Although it can appeal to consumers, it cannot sustain users' long-term experience. Now that VR has been promoted through the concept, Oculus will no longer support small and medium-sized developers. Instead, it will try to speed up the process of VR game maturity by encouraging 3A-level VR masterpieces. This will further expand the user base for purchasing and actually using the device. . Without the support of Oculus, small and medium-sized developers may need to rely on their own strengths to create higher quality content to gain market recognition. This may further promote the development of the entire market.
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