Media production, streaming, gaming, and entertainment technology.
AR/VR Games
Games using augmented or virtual reality technology
The field
At a glance
Definition
The AR/VR games sector combines immersive technologies to create engaging and interactive gaming experiences.
Field overview
The AR/VR games sector has emerged as a significant part of the gaming industry, revolutionizing how players experience digital entertainment. Since the advent of virtual reality in the 1990s, it has evolved dramatically, with advancements in graphics, hardware, and software driving user engagement. Today, the sector encompasses a diverse range of platforms, including standalone VR headsets like the Oculus Quest, augmented reality applications for mobile devices, and increasingly sophisticated PC-based systems. Recent trends highlight the growing integration of social experiences, virtual economies, and narrative-driven gaming. As technology continues to improve, the future holds promises such as the convergence of AR/VR with AI and greater accessibility through lower-cost devices and diverse content offerings.
Technologies
Six-degrees-of-freedom (6DoF) tracking enables natural head and body movement in VR. Hand tracking replaces controllers for intuitive interaction. Passthrough mixed reality blends virtual objects with the real physical environment. Spatial audio creates convincing 3D soundscapes that enhance immersion. Eye tracking enables foveated rendering (only rendering in full detail where the user looks) for better performance. Cloud VR streaming could enable high-quality VR without expensive local hardware.
Applications
Beat Saber provides rhythm-based VR fitness that burns 6-8 calories per minute. Gorilla Tag creates a viral social experience where players navigate as gorillas using only arm movements. Pokemon Go overlays digital creatures on the real world, driving foot traffic to businesses and landmarks. Rec Room and VRChat host millions of users in social virtual spaces. Mixed reality games place virtual objects in the player's physical room for shared tabletop gaming.
Market and funding
The VR gaming market is worth several billion dollars annually, with Meta Quest comprising the majority of headset sales. Pokemon Go's $6+ billion lifetime revenue remains the AR gaming benchmark. The installed base of VR headsets (20+ million Quest units) is growing but remains a fraction of console and PC gaming audiences.
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