In this 33rd episode of the Dr. VR podcast, hosted by Dr. Justin Baillargeon in collaboration with XRMust, today’s guest is a true pioneer of the immersive industry: Bob Cooney. A serial entrepreneur, author of Real Money from Virtual Reality and Guardians of the Metaverse, lecturer and strategic consultant, for over 35 years he has been helping companies harness the potential of digital, video games and virtual reality (VR).
Cover: LIFE CHRONICLES (Excurio / Muséum national d’Histoire naturelle)
This exchange took place a few days before the opening of the 8th VR Arcade and Attractions Summit in Las Vegas, organized by our guest.
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Bob Cooney: A journey through technology and entertainment
Bob Cooney didn’t discover VR in a laboratory or high-tech start-up. He comes from a very different world: that of laser tag and interactive entertainment. He recounts how, in the 90s, he witnessed the beginnings of consumer VR, notably with Virtuality, one of the first virtual reality arcade systems. While these experiences were rudimentary at the time, they were already laying the foundations for what would become the immersive industry decades later.
One of the key moments in his career came in 2015, when he tested an experience developed by Zero Latency, one of the pioneers of free-roam VR. For the first time, he experienced an immersion in which his body reacted instinctively to the virtual environment. This experience inspired him to become fully involved in supporting companies seeking to innovate in this field.
The adoption of VR: A generational phenomenon
Cooney takes a pragmatic look at the evolution of the market. Contrary to optimistic predictions that VR would take off in five years, he finds that adoption is proceeding at a much slower pace.
In his view, VR is really a generational technology. While adults are still struggling to fully embrace these experiences, the Alpha generation (aged 12 and under) is naturally getting into it, notably through games like GORILLA TAG and ANIMAL COMPANY. He highlights a striking phenomenon: during the holiday season of 2023, thousands of children asked their parents for Quest headsets simply to be able to play these titles in VR.
This dynamic suggests that the adoption of VR will not take place in the same way as that of smartphones, which conquered adults before being democratized among younger people. Here, it’s children who will gradually lead their parents into this new digital reality.
Challenges facing the rental-based entertainment (LBE) VR market
While VR in LBE (location-based entertainment) offers spectacular experiences, it remains a complex market, with many economic and technical pitfalls.
The COVID-19 pandemic acted as a filter, revealing which companies had a viable business model and which were surviving solely on the enthusiasm of the moment. Cooney identifies several recurring errors:
- Lack of economic viability: Many experiences are impressive but not profitable. VR centers need to maximize revenue per square meter and keep labor costs below 20% of sales to be sustainable.
- Excessive market fragmentation: The absence of standards hinders the efficient distribution of content. Infrastructures and formats are too varied, making it difficult to adopt games and experiences on a large scale.
- Poor understanding of the target audience: Too often, designers develop experiences they’d like to see, without making sure they match market expectations.
Licensing: a miracle solution?
LBE experiments based on well-known franchises (STAR WARS, SQUID GAME, BLACK MIRROR) attract audiences, but their operation is costly and restrictive.
The resounding failure of The Void is a perfect illustration. This company, which offered Disney-licensed experiences, closed its doors due to excessive infrastructure costs and an unviable business model. The main problem? Excessive ambition, attempting to offer extremely advanced experiences without regard for profitability.
However, Cooney sees growing interest from studios in LBE VR. With the rise of streaming, certain licenses are acquiring unprecedented longevity, which could open up new opportunities for the sector.
Technological innovations to watch
What developments could transform VR into LBE in the years to come? Cooney identifies several major trends:
- Markerless motion capture: Reduce the need for expensive equipment and simplify installation.
- Artificial intelligence: Automate the creation of animations and environments to reduce production costs.
- Mixed reality (MR): Improve the welcome and transition phases by allowing users to visualize their environment before plunging into VR.
- Social and educational experiences: Develop more varied content to attract new audiences.
One of the most impressive examples remains JUMP by Limitless Flight, a wingsuit simulation combined with ultra-realistic VR immersion. The experience, billed at over $100, proves that the public is willing to pay for exceptional immersions.
The future of the sector and recommendations for entrepreneurs
For Cooney, the future of VR in LBE will involve three main areas:
- Diversifying formats: moving away from all-gaming to offer more narrative and cultural experiences.
- Optimizing infrastructures: reducing the cost and complexity of installations to ensure profitability.
- Market standardization: define standards to facilitate content distribution and foster the emergence of a genuine ecosystem.
His advice to entrepreneurs? Don’t underestimate the sector’s challenges. Many start out with exciting ideas, but without a proper analysis of existing models. He recommends testing as many experiments as possible, studying market trends and adopting a pragmatic approach before investing.
He also stresses a key point: VR should not be undervalued in terms of price. Premium experiences can sell for a lot of money if they’re well designed. The industry needs to learn how to add value to its offerings and better communicate their value to the general public.
Conclusion
In this interview, Bob Cooney offers an insightful look at the current state and future of VR in LBE. His message is clear: the market is promising, but only those who can combine innovation, profitability and public understanding will succeed in taking full advantage of it.
VR hasn’t yet reached its full potential, but it’s evolving. For entrepreneurs and creators, the challenge is to structure viable offers while continuing to push back the limits of immersion.
Nota bene: this text is a transcription of the Dr. VR podcast, produced with the help of artificial intelligence software, with the consent of author and host Justin Baillargeon. Listen to the show produced by humans!
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