Neo Zheng, senior market analyst at IDC China, said that Chinese VR product manufacturers hope to use prototypes to attract early users and establish their position in this emerging market, but their technology lags behind Western companies. He said: "It is all to enter the market as soon as possible, but the experience they provide is limited."
The analyst estimates that China's virtual reality equipment shipments will reach 480,000 units by the end of the year, an increase of 475% over 2015. According to iResearch, China's virtual reality equipment market revenue will exceed 5.6 billion yuan (about 880 million US dollars), and by 2020 will reach 55 billion yuan (about 8.4 billion US dollars).
According to Forbes, virtual reality (VR) should provide an immersive experience that makes people feel immersive rather than being onlookers. But the VR helmet that the author of this article recently experienced did not meet this expectation. In a video played by the LeEco device, objects sometimes become blurred or suddenly disappear.
Hundreds of Chinese companies are releasing VR prototypes and are eager to develop fans of this emerging technology, but analysts believe that their prototype products are not satisfactory. Many people still buy these products just because they are cheap. LeTV operates a streaming video site in Beijing. The company sells VR equipment for only 149 yuan (about 23 US dollars).
LeTV is a VR helmet designed to play content from smartphone apps with virtual reality content. Stormwind, a entertainment company listed in Shenzhen, sells similar products at a price of 179 yuan (about 27 US dollars). Searching for Alibaba's Taobao.com shows that some vendors sell VR devices for as little as 59 yuan (about $9). Samsung’s Gear is only $99.
Even high-end models that support more content are cheap. The price of 3Glasses in Shenzhen is 2,000 yuan (about 307 US dollars), while the price of big friends in Shanghai is 1799 yuan (about 276 US dollars). Both devices are aimed at complex desktop game development, competing with Sony's $399 PlaystaTIon helmet, Facebook's $600 Oculus Rift and HTC's $799 Vive.
LeTV acknowledges that its helmet products are far from perfect. The company's executive Li Dai said that their team will develop new products with improved technology and more content. He said that early development is critical because competition has not increased and the market is big enough for everyone. But an unsatisfactory viewing experience does not prevent some people from trying future devices.
Tencent began recruiting developers of virtual reality games and content last year. Alibaba said this month that it will set up a research lab to break into this emerging field, so the technology may be adopted by its shopping and entertainment sites. The e-commerce giant also invested in the US virtual reality technology company Magic Leap, which is developing devices that can overlay 3D images in the real world. Although it has never released a product, its valuation is worth $4.5 billion.
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