China Virtual Reality Arcades Target Real World Success, East Asia News & Top Stories



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SHANGHAI (AFP) – Ms. Chen Jiuxiao puts on virtual reality glbades and is immediately transported to a snow-covered ski slope on which she slips without ever leaving Shanghai.

"I felt weightless on my way down the mountain," says Ms. Chen, 25, after reappearing in the material world. "The landscape around me was so authentic."

Ms. Chen, a hospitality worker, said that she had ventured into one of Shanghai's VR halls because of word of mouth from her tech-savvy friends.

According to a joint report by iResearch Consulting Group and Greenlight Insights, China had about 3,000 video game arcades in 2016 and the market is expected to multiply by 13 by 2021 to reach 5, 25 billion yuan (1 billion Singapore dollars).

Add to that the benefits of headphones, equipment, games and other products, and it is no wonder that the augmented reality and virtual reality industries are excited about China.

"Chinese growth over the next five years could lead to long-term AR / VR dominance – not a small margin," said Digi-Capital, a Silicon Valley consulting firm, in a report from Last year.

"China has the potential to recover more than one in five US dollars spent in the sector globally by 2022," he added.

The Chinese government is a key factor.

Tens of millions of Chinese have become haunting players of mobile video games, raising concern that China is breeding a generation of young myopic battle games enthusiasts.

Last year, the authorities imposed restrictions on the number of games and gaming releases for young people, thrilling the industry and cutting the market value of big players by several billion, including video game giant Tencent .

But the government insists that China become a world leader in next-generation technologies, including artificial intelligence and autonomous vehicles. Virtual reality has been grouped in this favored clbad, benefiting from many preferential policies.

Mr. Chen Wei, director of Shanghai VR Arcade Machouse, said that VR would probably avoid the fate of mobile video games in China.

He cites the relatively high cost of arcade games – up to 70 yuan (14 Singapore dollars) or more for a 15 minute game – and the establishment of home systems.

"It is difficult for minors to become addicted," he said.

The fledgling virtual reality games industry however suffers from a shortage of high quality games.

At VR + Amusement Park in Shanghai, a new game arises every three months, officials said.

Companies such as Tencent remain reluctant to enter the gaming room industry until the sector reaches critical mbad, badysts said.

But the company, along with Chinese giants Alibaba and Baidu, is investing in virtual online shopping and virtual reality entertainment, all of which could have an impact on gaming.

According to reports, several Chinese cities have already declared incubation zones integrating virtual reality into research, manufacturing, education and other areas, attracting capital.

Seekers VR, based in Wenzhou, in the east of the country, has a franchise chain of 200 arcades in more than 70 Chinese cities and is working with the Wenzhou government to create a college specializing in training students in virtual reality and learning. use of technology in courses. .

"There is no dominant competitor in the virtual reality business because it is so immature and we will bring more and more opportunities," said Seekers VR executive director Belle Chen.

The expected large-scale adoption in China of ultra-fast 5G networks is expected to further boost the development of virtual reality and foster growth in areas such as education and training, said Chen Wei. .

"There is no better way to acquire skills and at a lower cost than virtual reality," he said. "Even if virtual reality continues to inform users about what it is, it could explode one day."

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