When Facebook purchased Oculus VR for $2 billion in 2014, Facebook CEO Mark Zuckerberg boldly stated: “We believe this kind of immersive, augmented reality will become a part of daily life for billions of people.” Google, Sony, Samsung HTC and others also touted the technology as the next big thing.
But since then, sales of virtual reality (VR) have been slower than originally expected. Still, last April, IDC projected worldwide shipments of Virtual Reality (VR) hardware would “skyrocket” in 2016, with total volumes reaching 9.6 million units and revenues of approximately $2.3 billion in 2016.
The consensus now is that VR is certainly good for gaming, but it’s a first step toward augmented reality (AR), which might be the next big computing platform. AR is a technology that enables placing digital images on top of the real world with a phone or headset.
Investors looking for a disruptive technology to invest in would be wise to consider investing in companies pushing forward with both VR and AR technology. The following are companies that are worth considering investing in if you’re looking to invest in VR and AR.
Microsoft
Microsoft’s HoloLens is not only used for video games (it can project 3D Minecraft on table tops), but it also can project interactive holograms of 3D designs for graphic and industrial designers. It can even “teleport” another person’s full-body hologram into your room. Microsoft has already partnered with several major companies with the technology, including Lowe’s and Volvo, who use the HoloLens to showcase their products in augmented reality.
Microsoft has big future plans as well with its upcoming Windows 10 Creator update, which will feature a 3D image capture and editing tool that will allow artists and developers to create 3D objects to be viewed in HoloLens and upcoming VR headsets.
Facebook shipped its Oculus headset last March. Part of the reason sales have been slow is that it cost $600 for the headset and $1,500 combined with a compatible PC. However, prices are expected to lower once Facebook achieves economies of scale and the technology matures. Facebook says that by 2025, it will build a teleporter with Oculus Rift to “transport” its users wherever they want to go.
Google has been making heavy investments in various aspects of VR technology, including Google Cardboard, which is an affordable VR headset. Google also partnered with Intel to develop Project Tango, a platform that will allow smartphones and tablets to identify real-world objects with a camera and project AR overlays on them. Last year Google released Daydream, an Android-based VR platform and headset design for “Daydream-ready” phones. The search engine giant has made significant investments in Magic Leap, an AR start-up that is developed a mixed reality headset similar to HoloLens. While Google’s strategy to VR and AR is broad, the company certainly sees this industry will soon become big and wants to be a part of it.
AMD
AMD has long been the underdog in the chip market, behind Intel and Nvidia. However, the company is posed to do well in the VR market. AMD’s RX 480 was the first $200 graphics card for VR gaming and is being included in PC consoles that feature VR.
Plus, AMD’s semi-custom APUs power both the Xbox One and PS4, the major gaming consoles that are expected to take advantage of gaming VR in the coming years. AMD has also developed Liquid VR, a software development kit aimed at reducing unwanted processing latency to deliver a consistent frame rate. This should help with a more immersive experience that will improve immersion and comfort, while reducing ‘motion-to-photon’ lag.
STMicroelectronics
STMicroelectronics is a manufacturer of chips used in a wide variety of technologies, including connected cars, wearables, and Internet of Things technology. The company also creates motion sensors (accelerometers and gyroscopes) for smartphones and tablets. The company recently launched a low power 6-axis gyroscope and accelerometer combo device designed specifically for VR and AR devices and has been certified for use with both the Project Tango and Daydream platforms.
-By Chandler Harris
Chandler Harris 
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