Independent VR developers are overvalued, according to investors who were surveyed by Greenlight Insights for their recent State of the Industry Survey.
83% of investors who participated believe that current valuations given to private VR companies are ‘too high and unjustified’. The lack of an established market is the top concern, with investors also worried that business models have yet to be fully developed and the sales risk remains too high.
Biggest Challenges Facing The Industry
More than 500 VR industry professionals were surveyed in February, including developers, manufacturers, distributors, media and investors. Across all sectors, the single biggest challenge identified by respondents was ‘inadequate content offerings’, with 37.8% sharing the opinion that as yet, the available VR content is not compelling enough to win over sceptical consumers.
Inadequate content was only the main challenge by the smallest of margins; only 1.1% fewer felt that the ‘high price of headsets’ is the biggest challenge facing the industry, at 36.9%.
Greenlight’s Virtual Reality Industry Report, Spring 2017 releases tomorrow.