In the space of a few years, the Virtual Reality phenomena has stormed its way into our lives. As with all viral matters, Virtual Reality has experienced exponential growth from a theatrical concept in the mid-nineteenth century, through classified training systems in the 1990’s, into consumer available ‘VR’ headsets accessible around the world since 2015. Two years ago, the average consumer wouldn’t have known what Virtual Reality was about, however, come 2018 and the average customer has tried it at least once in one form or another. With this new trend of virtual reality based technology we must ask ourselves, ‘Will VR change the world?’. Well, we’re yet to figure that out, however, we do know that it will undoubtedly become a driving force in our everyday lives and change almost every aspect of our lives in one way or another.
Source: Goldman Sachs Global Investment Research.
Virtual Reality is a relatively new technology that has started to affect many different industries due to its growing potential. One industry in which it was seen unmatched growth in is the Gaming Industry. Since the early 70’s, many attempts of establishing a VR-based gaming market have been made. Many of these attempts failed, which lead to no real market being established. The big break through, however, happened less than 2 years ago, after HTC released its’ Vive gear. Before this product was released, a very small number of companies had tried to claim market leader in this new Market, including but not limited to, Oculus Rift and the Microsoft HoloLense. Whereas the Microsoft HoloLense made no attempt to enter the Gaming Industry at the time, Oculus Rift was left to drift through a sleeping VR market with no competition. Very few could have predicted the oncoming storm of virtual reality and everything VR.
Things changed dramatically after HTC raised a great deal of hype over it’s unreleased VR gear, HTC Vive. Suddenly, the gaming community saw it’s potential to change the video gaming era, and from it form a new era, VR Gaming. For HTC and other tech companies, it was the perfect time to capitalise on this new era and enter the market.
The estimated rise of VR technology sales in the future. Source: Business Insider
Meanwhile, the Universal City based Escape Room games took a close look at the potentially profitable concept of VR arcades. LAN centres had been the perfect fit for the PC gaming era and now with this influx of Virtual Reality products, it was a perfect fit for the new-born VR gaming industry. In addition, it was a great opportunity to up-sale and co-market existing enterprise, Escape Room Games, that resided on the second floor of a two-storey building in the heart of the entertainment capital of the world, Universal City. After a strong consideration and weighting all checks and points, Virtual Reality Games had been formed in the lobby of Escape Room games. A single Virtual Reality station was purchased and installed to be promoted among escape room lovers and prove the idea of VR gaming right or wrong.
At first, most Escape Room Games’ customers, knowing nothing about VR, would bother with the station. However, a free tutorial later, customers would be amazed by its potential and wish to play another hour. In half a year, customers started inquiring about VR games and, soon enough, another VR station was set up. By 2017, it was clear that 2 VR stations were not satisfying the vastly growing demand for Virtual Reality in the area. Escape Room Games expanded to its’ maximum physical capacity and installed 5 VR stations. In addition, a new lease at Hollywood Blvd was signed. Having started with 4 VR stations, it now has 8 headsets and a racing car in its possession.
Virtual Reality Games delivers VR technology to the gaming consumer market. Being the first Virtual Reality Amusement centre of Los Angeles, Virtual Reality Games proudly wears the title of the biggest VR amusement centre in LA. With 14 stations and growing, it plans to extend its equipment, with a total of 14 VR headsets at Hollywood Blvd and another 15 stations at Universal City by the end of 2018.
Currently, Virtual Reality Games has no competitors in the area. All in all, in addition to 14 VRG stations, another 2 more are being added to Hollywood Blvd and Highland. In comparison, one of our competitors, Los Virtuality, has added another 2 at their Westwood residence. In addition, another competitor, VR Zone, has added 6 more stations to its property in Northridge. Virtual Reality Games’ goal is to saturate the market and satisfy the rapidly growing demand for VR entertainment to maintain dominance over competitors in the neighbourhood. With Universal Studios and Hollywood Blvd, the two biggest cinematic attractions in the world around the corner, the potential to entice visiting tourists into VR entertainment and our arcades is immense.
Along the way, Virtual Reality Gaming and Escape Room Games at Universal City has developed its own unique marketing strategy, and has started hosting VR and Escape Room arcades under the same roof. This allows for larger parties, of up to 40 people at a time, to use the facilities. The company’s presence at the Universal City location is doubling its space from the second floor to the floor space of the entire building.
Virtual Reality Games, Universal City, is finally moving from a tiny 400sqf presence in Escape Room Games’ lobby into a full 1200sqf space, adding a further 10 VR Stations to its already 5 stations. Escape Room Games itself is also growing into a two-storey amusement park with 4 escape rooms and 15 VR stations. This triples the revenue at the very least and increase the maximum capacity to 70 people.
In 2 years of operation, the Universal City location cultivated its’ monthly revenue into $20,000 and an estimated $60,000 is expected after expansion to the ground floor. Due to the ever-expanding growth in demand for VR, Escape rooms and Amusement centres in general, Virtual Reality & Escape Room Games aims to expand to new location in the future.