Apple, Virtual reality headset, Headset, Augmented reality, Mixed reality RK Invest Big Ideas 2021: VIRTUAL WORLD | What It Means? | Gaming Stocks, Unity, FB, SNAP & More!
Honestly, they have lots of ideas in that article. If you want i’ll be leaving the link down in the description below i’m also going to cover the digital wallet in another video, because those two segments are really interesting to me and hopefully to you too we’ve covered couple of companies that cover those two segments. So going forward, there might be some useful information and maybe potential great opportunity in the long term, but before i do so, some of you that are following me on twitter know that elon musk has actually commented on one of my tweets. You can see it right here, pretty pretty stoked about that. If you are not following on twitter, you can do that at couch investor. Now, before i go into this video, i would like to thank everyone that has been subscribing lately. It’S been crazy if you haven’t, subscribed yet hit that subscribe button, and if you like these videos, leave it an early thumbs up as it really helps me out, grow the channel and get my videos out there so without further ado, let’s dive into this Music right. So some of you know already talked about a couple of companies regarding the virtual world, one of them obviously, unity, we’re gon na talk a bit more when we see the actual document and the other is facebook, obviously with oculus. Some of you know the report is actually two days or three days ago, insane earnings super good earnings.
Actually, i know a lot of us don’t like facebook, but, like i said you can hit the company, but the business is pretty pretty good, so let’s go and dive into this arcs virtual world. So first page we have here a general overview. So virtual work consists of video games, augmented reality and virtual reality. A virtual world is defined as a computer, simulated environment that can be accessed by anyone at any time. Society interacts daily with virtual worlds, which today are in their infancy according to their research revenue. From virtual world will compound 17 annually from roughly 180 billion dollars today to ‘0 billion dollars by 2025.. Today, virtual worlds are independent from each other, but in the future they could become interoperable, culminating in what futurists have deemed the metaverse right. So first we’re gon na talk about the video game, monetization models that are shifting to virtual goods. So, as you can see, this was here 2010. The biggest part was a percent of revenue from premium games. Only 20 percent of that came from in game purchases. Five years later, 50, 50 now 2020, so last year that shifted heavily 75 in in game purchases 25 from premium games. Now you might have noticed this when you download games on your phone or even on your console. As you know, warzone 3 fortnite free pub g is free as well. Roblox, i believe, is free as well, unless the developer makes the game payable, but all of those games are usually free because they want you to spend money in game and that’s something that’s going to increase moving forward as well.
Why well we’re gon na see here thanks to the proliferation of in game purchases, economic power is shifting from developers to gamers. In fact, with lower barriers of entry, many gamers have become developers. In our view, this shift has increased the monetization rates of video games during the next five years. The cost per hour of playing video games is likely to increase by 20 percent, but will remain a bargain relative to other sources of entertainment and information when they compare that, you can see here, i’ll see, newspaper, cable, social media platform, music and then comes gaming in 2025 and gaming, as of today small shout out to the podcast right here on the right. They will probably surpass radio in the next couple of years, with spotify amazon apple, all going into podcasts right, but again this point that many gamers become developers and this low barrier of entry. We can actually see that with companies like lp games, unreal engine and unity again, very, very easy. Unity is easier than unreal engine to use create games. Now they go on by saying that, obviously, video games are becoming third places away from home and work. It also accelerated, obviously during the pandemic, so, according to their research, the average time spent playing video games will increase from 1.1 hours per person per day to 1.5 hours during the next five years. I know if you look at it from micro perspective. Doesn’T look like much 1.
1 to 1.5 that’s, only 0.4 hours difference. But if you look worldwide, not everyone is playing games. Other people might not play games. Super young people might not play games as well, and people that don’t have access to games or just are not gamers at all. So overall, 0.4 hours increase is pretty big. Now, if the increasing trend of both monetization and time spent remains in place in game, purchase revenue could compound 21 annually during the next five years from roughly 130 billion dollars in 2020 to nearly 350 billion dollars by 2025.. Now this becomes a bit more interesting because we’re going into augmented reality, augmented reality and virtual reality are something that have been talked about for years now. Pokemon, go obviously accelerated that, but now we can see over the past few years, companies such as snapchat, facebook and apple – i want to put nintendo and niantic as well, have increased their investment in augmented reality. Encouraging widespread use of ar tools on mobile devices snapchat was actually one of the first ones to do that to incorporate ar into their app that’s how actually they became super popular, not only because your message was disappearing after a couple of seconds, but because of all These cool little tools that you could use in the app. Obviously most of these social media platforms have adopted the same thing: to buy 2022 consumer grade ar headset should turbo charge. This trend arc forecast that by 2030, the ar market could scale from under 1 billion.
Today to 130 billion dollars and again i want to show you those results from facebook. You can see here a huge increase of revenue from the other section, which is basically also the oculus one i believe and that’s. I think a popular opinion that, like every household, has a tv or a computer right now, i believe in the next couple of years, every household will have a vr set as well, which moves into the next point, which is virtual reality could approach reality by 2030.. Based on ark’s proprietary scoring system best in class, vr headsets today only achieve 10 of human visual immersion. If consumer vr is limited to the console gaming market, we believe vr headsets will not scale to human immersion capabilities for the mass market and based on wright’s law. They use this in various models. Complete visual immersion at a price point comparable to that of pc will require vr headsets to follow the adoption curve of smartphone until 2030, which makes sense at first you had those vr headset that were huge, uncomfortable for you and now with oculus and probably other as Well, i think sony playstation has one of their own makes it a bit more comfortable, but again in the future, like with the smartphone and the phone years ago, you had a huge phone that you had to carry like this. Now the phone fits in your pockets. Basically, a pocket computer same thing should be happening with vr going forward and that will result in the revenue from virtual worlds could approach 400 billion dollars by 2025.
. You can see here on the left, the global gaming market size, obviously it’s going to increase heavily towards. Obviously, it’s going to shift heavily towards the in game spent they project a 16 compound annual growth rate and then on the right. We have your global ar and vr market size what’s in that ar smartphone ar glasses and obviously the vr opportunity as well, and that is supposed to grow at a 59 compound annual growth rate. I know as of today this might seem impossible, because well, i don’t have a vr headset at home. Probably lots of you don’t have a vr headset at home as well, but moving forward. I believe a lot of us will be buying. I will actually be buying this year for my birthday, a vr headset, to try it out i’m, pretty pretty excited to try it out. I’Ve been following someone on twitter called investmenttalk. If you are not following him, he has bought the oculus for due diligence, but it seems like something very, very enjoyable and obviously moving forward in the next couple of years. What we know, as today, as vr headsets or ar devices, will be completely changed. Companies like unity, unreal, facebook and all the gaming companies ea activision blizzard. All of those companies will probably gain a lot from that. So if you’re invested in one of those companies and you’re doubting them in the short term, don’t know more in the longer term.
This whole gaming market will become even bigger. We can see that in the last couple of years the gaming market has exploded, obviously, because of the pandemic. The gaming market has been accelerating as well, because well everybody’s, staying at home, everybody’s watching ninja or whatever on twitch. So expect huge opportunities in that market i’m: a big fan of unity, big fan of epic games, unreal engine as well, but as of now only hold unity, and i expect them to be a very, very good investment in the longer term that will be for this. Video, let me know down in comments below what you think about this segment. Are you as excited as i am regarding the virtual world? Let me know down in the comments below don’t forget the next video will be about the digital wallets, so stay tuned for that.