Commentary

Immersive entertainment recovery gradually gains traction

The backpack PC VR free-roaming scene has been seeing constant movement, and the whole hyper reality sector is receiving immense investment.

Image provided by iStock.

October 4, 2021 by Kevin Williams

Seeing incredibly strong customer retention entering the impact of the global health crisis, the market has weathered the storm and seems to be positioning for a strong re-emergence.

The Business Research Co., in its Amusement Parks Global Market Report 2021: COVID-19 Impact and Recovery To 2030, projected a $760 billion market by 2025 from the current $570 billion projected worth.

While these numbers provide a snapshot of the revenue and foot traffic returning to the immersive entertainment scene, it is important that we understand that they only offer a small visibility on the full picture. Many venues either remain closed or are finding it difficult to reopen. Aspects of Europe and Asia are returning to localized lockdowns. By no means do we want to give the impression is that the situation is over.

Backpack PC VR rises

Nevertheless, the backpack PC VR free-roaming scene has been seeing constant movement, and the whole hyper reality sector is receiving immense investment.

Zero Latency reported indications of a strong returning market in March. This is still an incredibly fragile process, as operators reopen and address pent-up demand. The company is in the process of following out a new game release with international IP with "FarcryVR" in partnership with Ubisoft.

TrueVRSystems, known for its backpack PC and free-roam VR platform, released numbers showing record numbers for revenue from arena operations.

MassVR, another operator using backpack PCs, has seen a return of its audience and even a slight spike in attendance numbers with the reopening of four locations.

Dreamscape, a hyper reality operator that closed its four venues during the pandemic, is now open again.

Likewise, the other promoted hyper-reality provider, SandboxVR, has started its gradual reopening process after remerging from Chapter 11 bankruptcy, with the company announcing its intention to grow its chain of operations to 15 new facilities by the end of the year.

Las Vegas gains momentum

Las Vegas opened before the end of 2020, and Area15 held its official opening event and New Year celebrations, but the market did not start to gain momentum till we entered March as the privations of the lockdown started to ease.

Backlight, with its OZ Experience," comprising a "OZ Immersive" with four wireless VR systems and other physical effects at Area15 saw record monthly occupancy of 84% during April, calculating 6,305 players during that month alone.

Immotion recently installed a VR attraction in Las Vegas' Mandalay Bay resort and casino.

Another example of the facility business observing continued interest even in the face of restrictions is that of VRworld NY — the originator VR entertainment facility that set the mold for many that followed. The New York location has mirrored the trend being witnessed by others coming out of lockdown. The site reaching the mandated 25% capacity cap in a matter of weeks after reopening.
The fact for many operators is that they need strong amusement and attraction pieces that will draw their audience, but also offer a level of stability to their overall offering. Not all VR technology is being run in dedicated facilities and many of these systems are placed on the game floor.

The Asian amusement and attraction scene, meanwhile, has been the first to see the real return of the audience following the privations of lockdown. Several leading VR Park facilities, many located in malls and retail parks, have reported strong returns.

Most recently Leke VR announced the opening of its 40 facilities in China. These Gen3 VR entertainment sites, reflecting the original presenting of VR entertainment to the Chinese audience, are seeing strong interest once again. We expect to see more attempts to establish this approach of VR park facility business in the West, though the realities of how fast tastes move in the market may mean that the sector is more focused on Gen4 and Gen5 hardware.

Investment continues to grow

We have seen investment in the market explode over the recent months. In June, Otherworld announced it had raised £2.9 million ($4.2 million) in a Series A round of funding, led by Edge Investments. This is a follow on from initial investment from Imbiba. The operation is looking to open more U.K. sites.

One of the best examples of increased investment into the VR space is the continued development of VR-based theme entertainment attractions. Lagotronic Projects was commissioned to work on one of the largest new Chinese VR theme park projects in recent time.

Kaisa International Resorts Group has been working with Lagotronic to develop the "Multi-level Interactive VR Speeder Ride," a ride on VR attraction based on technology and experience from the two companies. This attraction will open at the Kaisa International Resorts in Southeast Shenzhen.

The attraction will see themed VR "Speeders" on motion base platforms taking part in a game set in a futuristic Mars mission. The project is in the final construction phase with a 2022 opening date.

Though we are heartened by progress in the sector, to paraphrase a well-known quote, we may not be at the end, but we may have seen the end of the beginning.

(Editor's note: Extracts from this blog are from recent coverage in The Stinger Report, published by KWP and its director, Kevin Williams, the leading interactive out-of-home entertainment news service covering the immersive frontier and beyond.)

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About Kevin Williams

Along with advisory positions with other entrants into the market he is founder and publisher of the Stinger Report, “a-must-read” e-zine for those working or investing in the amusement, attractions and entertainment industry. He is a prolific writer and provides regular news columns for main trade publications. He also travels the globe as a keynote speaker, moderator and panelist at numerous industry conferences and events. Author of “The Out-of-Home Immersive Entertainment Frontier: Expanding Interactive Boundaries in Leisure Facilities,” the only book on this aspect of the market, with the second edition scheduled for a 2023 release.

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