Main business challenges of VR/AR/XR gaming

Pavel Shlapak
3 min readJun 27, 2019

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Technological innovations in VR/AR/XR attract the attention of gamers quite easily, with so much excitement promised. So, when companies deliver these products, they face substantial challenges.

Whilst working on the Paracosm Project, I have managed to discover these challenges in practice. Understanding them is a significant step toward finding the best solution in terms of a particular product. In this article, I would like to share some of my thoughts on this topic.

1. Hardware Challenges

It took some time for Virtual Reality to become part of the mainstream. Only because of the current decent library of VR games are customers willing to purchase these headsets. For the Paracosm Project, we developed the CrossParacosmic VR Hub, a kind of portal to many game paracosms. The level of this product is not high enough without many other existing games that expand gamers’ experience.

Developing great innovations should be done with the real possibilities of popular hardware in mind. Virtual, Augmented, and Cross-Reality products may become useless if most potential customers haven’t the devices to enjoy them - here and now, not in the future.

2. Gameplay Challenges

With the amazing technical possibilities of VR, AR, and XR, developers often have nothing to offer in the area of gameplay. The wow-effect of the very technology can bring some profit. Still, without giving people interesting internal activities, this could just be a temporary success.

3. Distribution Challenges

Even the traditional way games are distributed is reforming now - thus, the issues of exclusivity appear as a way to enter the market. The situation with VR/AR/XR products is even more uncertain. This becomes especially obvious with Cross-Reality products. How to sell phygital objects? They are more than physical souvenirs and more than digital assets.

For games of the Paracosm Project, we are not looking for external solutions but to deliver a distributive platform of multi-reality products. The opportunities presented by our Paracosm platform and Caer Sidi service are open for other developers in the market.

4. Health Care Challenges

Many end-users in the games industry are children and teenagers, and we must think about their healthy development. I talk here about their physical and mental health. Virtual Reality Headsets have not been actively used for long enough to know for sure how they affect the eyes, while Augmented Reality games have not existed for long enough to know all the effects they may have on the social life of their players.

5. “Next step” Challenges

Technological innovations in VR, AR, and XR are still actively developing. Let’s take a closer look at Virtual Reality. For now, it is still in its infancy. For Paracosm Project products, we don’t only focus on VR because such a step is unsuitable for the current stage of its market development. Still, we think about the future too - what will we deliver for our users when the VR hardware and available content create a totally new situation in this area?

Of course, it’s rather impossible to classify challenges in the ever-changing world of business. The situation with Virtual, Augmented, and Cross-Reality technology is unique due to its fast evolution and the presence of many powerful players in the market. Microsoft with their Hololens, Sony with their PSVR, and some other big companies make up other challenges to be aware of.

For me personally, it would be interesting to follow the activity of Google in the area of gaming. I believe the technology of Google Stadia is only an entry point to the industry for this corporation.

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Pavel Shlapak

CEO and co-founder of Caer Sidi. Top manager and IT consultant with more than 15 years of expertise in developing projects around the world.