Sales in the Virtual Reality Market - Essay Example

Virtual Reality Virtual reality systems place users in an imaginary world, wherein they feel that they are actually participating in a scene, which in reality is generated by a computer. The systems originated in California and were developed by various companies in the Seattle region, Texas, Boston, Chicago and New York. Virtually Yours, the first exclusive retail store to sell such virtual reality equipment, was established in Indianapolis. Moreover, there are several establishments, in which people pay money to play Virtual Reality games. Virtual reality applications require headsets, hand gloves and other equipment, which are integrated with computer programmes. It is the fastest growing branch of electronics and computer technology. The distinguishing feature of VR is that its users feel that they are living in the computer – generated scene. VR games and other accessories are generally available with Incredible Universe and CompUSA chain stores. The present estimation regarding sales in the virtual reality market is approximately ninety million dollars per annum; and this is expected to increase to nearly six billion dollars in the future1. Virtual reality can be attributed to Sutherland who performed several pioneering works to develop the concept of virtual reality in the 1960’s. However the phrase virtual reality was coined for the first time in the late 1980’s. Some historians claim that the VR industry emerged during the 1990’s. VR gained popularity due to the extraordinary efforts of the early pioneers in this field2. Virtual reality is a computer – simulated world with which users can interact. These simulations, generally have some common characteristics, such as shared workspaces for the interaction of people with the programme, graphical user interface, real – time action, interactivity and persistence. Almost all simulations can be accessed over the internet. In those simulated worlds, there will be changes to the themes and landscapes, irrespective of the users who access the site. Online real time games come under this category of VR. For instance, Massively – multiplayer online role – playing games or MMORPGS are played in the virtual worlds. These are video games, which allow players to choose the persona of the characters in the play, and these persona are termed as avatars. MMORPGs and other virtual worlds are considered to be social networking programmes. Moreover, players can interact, form clubs, groups and chat with each other3. The availability of personal computers increased in the 1990’s, due to the drastic reduction in their cost. The use of personal computers increased tremendously. Moreover, computer technology was continuously improving, and the proliferation of the internet encouraged online gaming, and online virtual interactions between people. With the increasing bandwidth, the internet has become faster, and this has resulted in the emergence of more complex virtual worlds. At present there are a number of websites that offer online tutoring in virtual classrooms; and these virtual interactions between teachers and students have gained considerable popularity4. New technologies have emerged, which have introduced sophisticated tools like video conferencing, video lectures, interactive presentations, power point slides, annotated lecture notes, notes through emails and online group discussions. Students, who were unable to attend classes in school, due to personal problems, can join these online virtual classrooms. In addition, they can participate in discussion groups to better understand these subjects. There are some virtual classes, which offer the entire material required for degree programmes. At the moment, there are several online degree programmes available to students, in a variety of subjects, such as environmental science, politics, literature, history, economics and business management5. People are not necessarily confined to their own physical bodies in online virtual worlds. The famous online worlds like Second Life, There and Sims Online allow their users to take on avatars as their persona. These avatars are images created by these users. For instance, a coward can assume an aggressive avatar to represent him. Thus, there are no real identities in these virtual worlds. People can impersonate those whom they admire the most. The avatar is a clear manifestation of the most private aspect of these users. People can take on alternative identities and this aspect of the virtual world promotes the online marketing of merchandise6. Marketers can exploit the dreams of people, by selling avatars; and the people can live their dreams through avatars. The new technologies track down the movements of online avatars and assess the tastes of the persons behind them. A number of companies track avatars, so as to know the manner in which specific products are used, and the buying habits of consumers. Such information will allow these companies to assess consumer behaviour in the real world7. These assessments have been found to exactly correspond with the real world purchases made by the users of avatars. For instance, many users order real time brands such as iPods and Coke bottles, in the same manner, in which they did in the virtual world. Moreover, companies utilize avatars to promote their brands in the real world. Most users of avatars in the virtual world purchase the same brand of products that are used by the avatars for publicity. The most successful example of brand promotion is Nike. It sold virtual trainers its shoes to make it compulsory for the virtual avatars to wear these branded shoes to run in the game. The outcome in the real world proved to be very beneficial for Nike. However, there is opposition to real world commercial giants in these virtual worlds. This is because such commercial encroachment into the virtual world may lead to viral marketing and eventually a loss of control over the marketing of the brand8. Clear With Computers Inc, a Mankato, Minnesota based software development company is creating new software for promoting new products. This software will be used in a small dome-ceilinged theatre, in which nearly ten people at a time can evaluate the merits and demerits of new products. This company employs virtual reality to depict simulated versions of new products. Another company, namely, the Alternate Realities Corporation is providing technical assistance for this project; and the company, Silicon Graphics Inc., prepared the computer display systems. These technologies display high resolution images and videos of new products on the dome of the theatre. For instance, if the product were a car, then the viewer or customer would be placed in the driver’s seat. Thereupon, he would obtain a view through the car’s windshield, which would be displayed at the front of the dome. Similarly, the back of the dome would display the backseats and the rear view, outside the car. The cost of hosting such a facility comes to five hundred thousand dollars. In the initial stages, this facility is to be used in trade shows. Another company, Clear With Computers states that the cost would reduce in two years, and this would enable car dealers to establish their own test domes in their retail outlets. At the moment, Clear With Computers holds the license rights for five years, to use the new technology9. In 1995, EDS developed a new technology, known as immersive visualisation. It had established the first Virtual Reality Centre on a commercial basis. EDS provided the testing designs in this Virtual Reality Centre. This centre, permits customers to test the available products, by using this technology, and to decide whether to purchase the product or not; and to select products of good quality, thereby saving time on shopping. Moreover, the Centre provides various options to the customers with regard to new products, services and processes. Consumers can save their precious time and money by testing these prototypes. EDS had incorporated virtual reality in its new concept of Product Lifecycle Management Solution. This concept provides industries and businesses with unique insight that saves production costs. It had also developed a wide range of visualisation tools and techniques for its clients. These visualisations tools provide virtual environments for customers, such as the PowerWall or immersive work rooms. The consumer or user will be placed in a room where there will be projections of the product on the front, sides and floor of the room. EDS had also developed headsets that provide displays of the products. In the portable section, EDS had developed portable stereo displays. In respect of internet users, it had developed web based 3D models10. These portable visualisation solutions are of much help to clients, who can utilize the opportunities provided by virtual reality. In product design review meetings virtual reality plays an important role by involving designers, engineers, sales managers, service engineers, marketing managers and executive managers; who can conjointly, test the performance of new products. Similarly, virtual marketing centres enable customers to review the products much before their manufacture. Industries can get the feedback of their customers and then commence production, in accordance with the specifications of the customers11. Virtual reality based applications can be used in medical field, especially in pre – operative planning. They can also be used in robot – assisted surgeries. It can also be utilized in medical classrooms for teaching human anatomy. Medical data can be simulated into 3D graphics, which would enable students to obtain wider knowledge and greater insight into injuries and their effect on human beings. Virtual reality can be used in treatment for pain relief and depression, and for assessing the condition of such illness. However, virtual reality’s usage is still in a nascent stage, for commercial purposes. The Department of Defence widely employs virtual reality applications and technologies. Medical colleges and clinics, and producers of medical equipment are likely to benefit significantly, by using virtual reality technology. The Virtual Reality Market in the US Healthcare Sector provides deep insights into the commercial aspects of Virtual Reality technologies, such as the trends, forecasts and in – depth analyses regarding the projected expectations from virtual reality applications12. The economic condition of the company, Second Life had been improving due to Linden Lab’s decision to grant intellectual property rights to internet users for their creations on the Web, utilizing software tools. Many people have made houses and commercial enterprises on virtual land, which has been taken on lease from the web. Later on they sell these virtual items and some of the items sold were virtual yachts and virtual ice cream. However, Attorneys of the company and advertisers are struggling to determine if the owners of the property had any control over such usage of their property on the web13. Both the opponents as well as the proponents of the internet became deeply engrossed with the internet and the novel technology that it involved. Moreover, it was perceived by these people that the internet was a world that was distinct from material world. Those who were in favour of the internet, were enamoured of the perception that this imaginary world was a place that was unaffected by the limitations of the real world. These sentiments were succinctly stated by John Perry Barlow, in his 1966, “Declaration of Independence of Cyberspace”. The perception that the internet stood apart from the real world, proved to be false. The ills of the real world, like crime, fraud and taxes found their way into this virtual world. Even lawsuits, in respect of intellectual property rights have not been far behind, and several such suits have been filed before the courts, by companies like Second Life, which create virtual objects. Moreover, a number of countries have implemented physical borders and have enacted their laws, within these territories, for instance France has prohibited the sale of Nazi memorabilia and China has imposed rigid censorship, on the internet. The practice of social networking permits remain in contact with each other on the internet, while organizing and scheduling events in the real world. There are a number of applications that greatly diminish the distinction between the real and virtual worlds; for instance, Google Earth permits the internet user to view satellite images of various locations in the world, thereby allowing the correlation of data with these physical locations. Thus, the internet does not remain a virtual entity, but integrates into the real world, without much effort. The outcome of these developments is the gradual blurring of barriers between the real and virtual worlds14. MMORPGs and virtual reality worlds have registered high growth; and they also act as places for business promotion and networking levels for business purposes. They no longer constitute places for solely gaming and social interaction. These virtual platforms are of great importance to business firms, educational institutions and other organizations. This is because virtual platforms provide various opportunities to engender growth in business by expanding customer relations. In some multilevel marketing schemes, clients invest money online. For instance, Second Life is one of such virtual world, in which business organisations make all efforts to promote their business through their clientèle15. Reuters had established a blog bureau within the online game; and Sun Microsystems, Cisco Systems and other such companies have been posting news events in their virtual world spaces. MMORPG’s and virtual worlds occupy most of the internet resources and hence critics condemn them. Frequent users of these virtual worlds are developing addiction for them; and this is exemplified in a recent example of such addiction by users. In 2007, a South Korean gamer played a game continuously for several days and died, while playing, due to exhaustion16. Several nations had established de – addiction centres for such online gaming addicts. Furthermore, the US, China and South Korea have set up counselling clinics to cure such addiction and to prevent people from overusing the internet and online games. However, healthcare professionals, particularly those belonging to the mental health community have ignored this grave social problem17. In conclusion, it can be stated that virtual reality systems provide opportunity to those who access the internet, to experience an imaginary presence in a virtual environment. People are becoming increasingly engrossed with this virtual world, and the various facilities offered by this environment have drastically reduced differences with the real world. Therefore, it has become quite easy for companies to influence the buying patterns and proclivities of these consumers. A prime example of these tactics is that adopted by Nike, which sub – consciously persuades users to buy its products. Moreover, the judicious employment of propaganda can bring about changes to even the voting pattern of these users. Since, these effects are latent and at the sub – conscious level, the changes will occur, without the knowledge of these persons. List of references Alan Sipress, Where Real Money Meets Virtual Reality, The Jury Is Still Out. The Washington Post, December 26, 2006, A Section; A01. Barnaby J. Feder. 07 August 1995. Selling Virtual Reality, in Indiana. Accessed 14 May 2008. http://query.nytimes.com/gst/fullpage.html?res=990CE0DF1639F934A3575BC0A963958260 Belanger, Craig. Virtual Worlds & MMORPGs: An Overview. Points of View: Virtual Worlds & MMORPGs, 2008, p1-1, 1p; Reading Level (Lexile): 1450; (AN 28675352). Better together; Real and virtual worlds. The Economist, December 8, 2007, LEADER.  EDS Virtual Reality Solutions, 06 February 2007. Accessed 14 May 2008. http://www.eds.com/news/features/2731/ G.M. Peter Swann. Sales practice and market evolution: the case of virtual reality. International Journal of Industrial Organization. July 2001. Pages 1119 – 1139. Volume 19. Issue 7. John W, Verity. Now, the Virtual – Reality Sales Pitch. Accessed 14 May 2008. http://www.businessweek.com/1996/41/b3496111.htm Lee, M. Online Degree Programs: An Overview. Points of View: Online Degree Programmes. 2008, p1-1. 1p; Reading level (Lexile): 1510; (AN 28675288). Virtual Personalities face a reality check. The Times (London), 22 June 2006. Features; Career; Pg. 5 Virtual Reality Technology Finds Ready and Willing Market in Healthcare. 23 October 2007. Accessed 14 May 2008 http://salesandmarketingnetwork.com/news_release.php?ID=2021363 Read More