3 Companies Most Likely To Win When Virtual Reality Takes Over
Virtual reality is the future of entertainment, at least according to analysts at Goldman Sachs.
According to Tech Crunch, analysts at Goldman Sachs, the virtual reality segment will surpass the TV market in annual revenue within just 10 years. However, it is important to understand that the analysts included potential uses in virtual reality beyond video games and included education and productivity, among other users.
Tech Crunch noted that last year there were 126 separate financing deals that saw startups raise a combined $658 million in equity financing. The list includes a small handful of names investors are familiar with, including Leap Motion and Oculus, which was acquired by Facebook Inc (NASDAQ: FB). On the other hand, many of these unheard of companies may not be around in 10 years.
For investors looking to profit from virtual reality, Tech Crunch has a list of a few notable names that will be heavily active in the space.
NVIDIA Corporation (NASDAQ: NVDA)'s brand is a "natural fit" in the virtual reality space, and its NVIDIA GEFORCE NOW cloud gaming platform will "enable users to get high-end console-type graphics on their smartphones or even cardboard — at a reasonable cost."
Sony Corp (ADR) (NYSE: SNE) already offers its PlayStation users the ability to upgrade their console and buy a virtual reality 3D headset for $399. The company also boasts a "closed ecosystem" with a network of developers with years of experience in the space.
Apple Inc. (NASDAQ: AAPL)'s work within the virtual reality space, like its work in other new products, is very secretive and speculative. However, a patent filed in 2011 suggests the company is working on a virtual reality glove. Meanwhile, Apple is on a hiring spree and attracting top talent from areas of haptic technology — after all, Apple has "no other option" but to aggressively attack the space and claim market share that would otherwise go to major rivals.
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