March 29, 2024

How to make money vr, the current cost of VR development is so high

Although there are already three high-quality VR head-end manufacturers, we should have been in the heyday of VR development, but there is a sad fact in the VR market: profit is still a dream that cannot be touched. Recently, Joe Radak of Eerie Bear Games posted a post on Medium warning practitioners that if they are going to develop VR games now, they are likely to lose their money.

Why is VR not making money now? The original development cost is so high

This is a noteworthy warning. Radak's puzzle game Light Repair Team #4 is one of the recommended games on HTC Vive, and the rating on Steam is also very good. Although some posts say that this jigsaw puzzle is a bit too simple, Radak himself said that it will take 70 minutes to clear. But this game is not bad, after all, downloading Radak can cost $8. Many game developers often think that a two-person development team (as Eerie Bear Games) can make money by developing a game at home. But so far, Radak has lost $36,000 on this game. Therefore, the purpose of Radak's posting is to warn the latecomers not to take it too seriously.

Why is VR not making money now? The original development cost is so high

Although 95% of the game is done by Radak himself, he described in the post that it would cost more to recommend the game to Valve and Oculus. The cheapest is probably the server. It costs only $30 in three months, $40,000 in labor costs in four months, $3,500 in startups, and $3,000 in debugging two songs, for a total of $46,000. For developers who rent an office, there are other costs to consider. Two computers cost $3,000, the office costs $500 to $5,000, and even $110 per month. In addition, Eerie Bear Games also needs to pay taxes to the government, provide Epic Games with royalties using Unreal Engine, and share the distribution of Valve at Steam.

Why is VR not making money now? The original development cost is so high

“If we sold it at a full price of $7.99, we got only $5.2,” Radak said. “So, we have to sell 5602 sets to make money. The estimate is wrong, at least 8949 sets. OK, and this number is estimated based on our work at home, using our own computer.” After the release on HTC Vive, Light Repair Team#4 sold 2,300 units with a total revenue of $14,000 (unpaid taxes and cost). Radak said that even if they managed to keep the budget at an unrealistically low level, Light Repair Team #4 would still not make a profit. To make matters worse, Eerie Bear Games also needs to complete the patching work in the next few months. Considering the expectations of the release, occasional user criticism, and a small amount of promotion, the 2300 is actually a very low sales. This also reflects another problem facing VR development: even though the products of mainstream head-end manufacturers have been launched, there are still many Americans who know nothing about it.

Why is VR not making money now? The original development cost is so high

In fact, a new study by Parks Associates shows that 63% of Americans are unfamiliar or ignorant of VR, and only about 6% of men and 2.5% of women are interested in buying heads. In this case, even the best games may not make money. Of course, there are other developers who are also reflecting this problem. The day before Radak posted, Rocketwerk's Dean Hall wrote a lengthy post on Reddit about his troubles when developing the Vive exclusive game Out of Ammo, especially if the exclusive agreement restricts developers to only one. Platform development game.

Why is VR not making money now? The original development cost is so high

Therefore, Radak's post partially verifies the authenticity of the Hall statement, that is, the exclusive agreement will break the balance of VR development. “There is no money at all,” Hall said. “I’m not saying that I don’t have the money to buy a Ferrari. I mean I can’t make money at all. People always think that the developers who work with Oculus/Facebook/Intel seem to be selling well. The money you earn may not be able to buy an island! But the truth is that developers can only launch games if they work with vendors."

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