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sector7vr

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  1. Hey guys I'm sure you've all heard about oculus rift dropping it's pricing down to $399 for their consumer HMD + controllers. And their target price point is to be at $300 for this equipment. While our friends here at vive are charging almost twice that for their consumer version and more than three times that for their business edition! Plus $10 an hour for commercial operator right to game licenses.. To put that into perspective for arcade operators you're looking to charge at least $30 an hour to keep your head above water (barely). As the price of these consumer electronics continues to decline, it's going to be very difficult for VR Arcade operators. From a customers point of view, they would try it once at an arcade as a "demo" and if they liked it they would go buy their own, because it would only take 10-12 one hour sessions before they've spent the same amount of money as they would to own it. And I am Excluding cost of the pc, which is another $800 for now.. but you get my point. Prices are only going to continue to fall and unless you're setting up a free roam VR warehouse you better look at VR for venues other than gaming, at least through the VIVEPORT. They had the right idea with it but wrong focus, instead of trying to make indie developers happy, they should have catered to the arcade operators and focused primarily on selling their HMD at the enterprise level. Meaning eating up any licensing fees and not charging operators. If they did that when his first rolled out, there would have been hundreds of HMD units sold and many operators with 10-15 headsets at each store with multiple locations. Technology evolves rapidly and HTC missed a nice niche opportunity. Good luck all!
  2. Hey guys I'm sure you've all heard about oculus rift dropping it's pricing down to $399 for their consumer HMD + controllers. And their target price point is to be at $300 for this equipment. While our friends here at vive are charging almost twice that for their consumer version and more than three times that for their business edition! Plus $10 an hour for commercial operator right to game licenses.. To put that into perspective for arcade operators you're looking to charge at least $30 an hour to keep your head above water (barely). As the price of these consumer electronics continues to decline, it's going to be very difficult for VR Arcade operators. From a customers point of view, they would try it once at an arcade as a "demo" and if they liked it they would go buy their own, because it would only take 10-12 one hour sessions before they've spent the same amount of money as they would to own it. And I am Excluding cost of the pc, which is another $800 for now.. but you get my point. Prices are only going to continue to fall and unless you're setting up a free roam VR warehouse you better look at VR for venues other than gaming, at least through the VIVEPORT. They had the right idea with it but wrong focus, instead of trying to make indie developers happy, they should have catered to the arcade operators and focused primarily on selling their HMD at the enterprise level. Meaning eating up any licensing fees and not charging operators. If they did that when his first rolled out, there would have been hundreds of HMD units sold and many operators with 10-15 headsets at each store with multiple locations. Technology evolves rapidly and HTC missed a nice niche opportunity. Good luck all!
  3. Ok, here's a crash course in economics for the viveport arcade team, please forward to them. The Viveport Arcade pricing model is terribly flawed and will fail horribly and here is why: It's backwards. You're model is to charge fee's to commercial operators in order to allow access to indie game licenses. As of today and the near future there is too much supply(games) and not enough demand(people willing to pay for games), so your model will and I'm sure has been getting destroyed. You have been negotiating with developers and you should have been negotiating with operators. Your goal should be on increasing demand. Period. How? Through out of home VR gaming and demo experiences. You need to focus on selling as many commercial Vive headsets and accessories to as many operators as possible. INCLUDED in the purchase of the commercial VIVE should be select gaming content from select developers: Free of play by the minute charges. The developers who have made their titles available should be compensated by a percentage of the initial purchase, a direct one time fee, or include freemium models with in game purchases made available within their games. This will allow a number of effects to unfold. 1. Awareness of the technology will increase dramatically. With this model you are placing operators on a foundation that encourages the opportunity of growth and expansion, which will simultaneously grow demand, assisting developers and ultimately assisting Vive. 2. Barrier to entry. With no barriers you will host a surplus of poor quality games and with a lack of operators bringing in gamers/customers, you will be drowning demand with supply. You will have a number of titles that will never be played or even downloaded and will have no way of gathering statistics on which games are successful and why. Having a larger sample size with customers and a smaller selection of games will allow operators and viveport to coordinate data to developers as to what customers like and what they want more. Creating more targeted content to ensure repeat customers and not overflowing the gaming database with irrelevant content that will have nobody coming back a second time. 3. Better content. With a freemium model developers will focus on in game purchases and return customers. They will make much better content and will have the insights of customers gained from operators to make their games more dynamic. User Profiled games, tradeable items, digital currency, Multi-player games, purchaseable in game items, buy-in tournaments, sponsorships, trophies. All of these will encourage customers to return, with friends and play for hours, together. The current model offers customers 600 games to play and they jump from one game to another for 30 minutes spending less than 3 minutes on each game and never come back because it was unfulfilling. 4. Developers will earn more money and focus on quality in order for their title to be "accepted" into the Viveport arcade instead of just expecting it once they've launched a game. Fewer games means more money for select developers, a direct targeted approach for future games and developers, and less overhead/storage requirements for operators. If they are the right games, they will be played at full occupancy and will require scheduled appointments. Once this is the case, the only option will be to purchase more Vives and create more stations for more customers. For example: The AppStore. In order for the AppStore to be successful there had to be a large consumer base of people who owned a smart phone (VIVE). Priority #1- increase ownerships of Vives. Price is too high for consumers, so focus on VR Operator centers to act as the "phone user." The Viveport is the AppStore and the developers Pay $0.30 to apple(VIVE) on every dollar they earn on users. The User (operator) only pays once to buy a game or in freemium models within in app purchases. Guess which are the most successful applications. The free ones. And the free ones know if they create engaging content and offer in app purchases they will earn a fortune. No smartphone user pays app developers by the amount of time they spend on the app. Not even Internet cafes pay the internet companies by the hours of usage. It's a flat monthly fee based on speeds. The ONLY way to make this work is to have a large supply of operators offering this to the public at a Very affordable price. This is a quantity solution not a quality. Developers will never survive on one or two operators charging $50 an hour to play their 1 out of 600+ game for five minutes. Developers are focused on immediate gains by bleeding out commercial operators but it's going to backfire when operators cannot stay in business. It's not in the best interest for vive or commercial operators short or long term. We have to work together and sacrifice in order to increase awareness & demand, only then can we begin implementing higher and creative fees through adoption.
  4. Ok, here's a crash course in economics for the viveport arcade team, please forward to them. The Viveport Arcade pricing model is terribly flawed and will fail horribly and here is why: It's backwards. You're model is to charge fee's to commercial operators in order to allow access to indie game licenses. As of today and the near future there is too much supply(games) and not enough demand(people willing to pay for games), so your model will and I'm sure has been getting destroyed. You have been negotiating with developers and you should have been negotiating with operators. Your goal should be on increasing demand. Period. How? Through Affordable out of home VR gaming and demo experiences. You need to focus on selling as many commercial Vive headsets and accessories to as many operators as possible. INCLUDED in the purchase of the commercial VIVE should be select gaming content from select developers: Free of play by the minute charges. The developers who have made their titles available should be compensated by a percentage of the initial purchase, a direct one time fee, or include freemium models with in game purchases made available within their games. This will allow a number of effects to unfold. 1. Awareness of the technology will increase dramatically. With this model you are placing operators on a foundation that encourages the opportunity of growth and expansion, which will simultaneously grow demand, assisting developers and ultimately assisting Vive. 2. Barrier to entry. With no barriers you will host a surplus of poor quality games and with a lack of operators bringing in gamers/customers, you will be drowning demand with supply. You will have a number of titles that will never be played or even downloaded and will have no way of gathering statistics on which games are successful and why. Having a larger sample size with customers and a smaller selection of games will allow operators and viveport to coordinate data to developers as to what customers like and what they want more of. Creating more targeted content to ensure return customers and not overflowing the gaming database with irrelevant content that will have nobody coming back second time. 3. Better content. With a freemium model developers will focus on in game purchases and return customers. They will make much better content and will have the insights of customers gained from operators to make their games more dynamic. User Profiled games, tradeable items, digital currency, Multi-player games, purchaseable in game items, buy-in tournaments, sponsorships, trophies. All of these will encourage customers to return, with friends and play for hours, together. The current model offers customers 600 games to play and they jump from one game to another for 30 minutes spending less than 3 minutes on each game and never come back because it was unfulfilling. 4. Developers will earn more money and focus on quality in order for their title to be "accepted" into the Viveport arcade instead of just expecting it once they've launched a game. Fewer games means more money for select developers, a direct targeted approach for future games and developers, and less overhead/storage requirements for operators. If they are the right games, they will be played at full occupancy and will require scheduled appointments. Once this is the case, the only option will be to purchase more Vives and create more stations for more customers. For example: The AppStore. In order for the AppStore to be successful there had to be a large consumer base of people who owned a smart phone (VIVE). Priority #1- increase ownerships of Vives. Price is too high for consumers, so focus on VR Operator centers to act as the "phone user." The Viveport is the AppStore and the developers Pay $0.30 to apple(VIVE) on every dollar they earn on users. The User (operator) only pays once to buy a game or in freemium models within in app purchases. Guess which are the most successful applications. The free ones. And the free ones know if they create engaging content and offer in app purchases they will earn a fortune. No smartphone user pays app developers by the amount of time they spend on the app. Not even Internet cafes pay the internet providers by the hours they utilize online. It's a flat monthly fee priced by speed. The only way to make this work is to have a large supply of operators offering this to the public at a very affordable rate. That will drive repeat customers and allow operators to expand to more locations and reach more customers. Developers will never survive on one or two operators charging $50 an hour and they play their 1 game out of 600 games for five minutes. These developers are not making any money right now. And want to leach off commercial operators. I highly doubt consumers have or would purchase the games available on the viveport currently. And of course vive will sell more units.
  5. You're host PC will store all of the available games you downloaded (Viveport boasts 600+ available titles, but on a 2Tb pc you'll max out at about 50-100 depending on the games size, and no prime titles from what I've seen, so they want us to pay for access to all of these titles when we will never use a more than a quarter of them at a time), you then deploy the selected games to a client/gaming station and it has to be downloaded into the clients pc as well causing double storage space on both the host and the clients Pc's. The host is really utilized as an account manager to manage the gaming stations, i.e., paid play time, distribution of games, ability to see availability of all stations in store from one central location and the ability to purchase and allocate points to stations for game play access. However, you'll need a host pc for each location if you have two separate locations. As the clients receiving games and points must be from a host listed on the same internet connection.
  6. As was I, I am fully prepared to be operational. However I surveyed many would be customers and they said they wouldn't pay over $20 to play for an hour. Which is cause for concern and pause. I am in south Florida.
  7. Thank you for the update What's the ETA for the public release? What additional features will be added? Are you gathering info on price points? Are there any operators successfully utilizing your Arcade management software at its current price point? If so can you provide store statistics ? If not, Is there any consideration in reducing the pricing to a more feasible amount? There was a disappointment in direct to consumer sales because of the price of the tech. The Arcade and out of home amusement should keep the industry afloat long enough for the pricing of the tech to decline to an affordable amount. However, Viveport is now going to be in the same predicament with its viveport arcade subscriptions once operators realize they cannot operate at a profit with these price points. The sole purpose is to keep Indy developers developing and to keep units selling. With long term focus being on the direct sale to consumers once prices decline. Not to overcharge operators on licensing fees.
  8. Agreed. You would either need an existing establishment willing to sublease space for you to operate, an alternate product with higher profit margins or the ability to charge $40 per hour to make money at these rates. Ridiculous. They need to make more multiplayer games where kids, friends and families can come in and play with eachother and interract. HTC is going to have to rethink this. I wonder how many points they've sold to date. Even at 50% discount its still very high, and for second rate games at that.
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