In the second part of his feature, (click here for part one) looking at the impact that the movie business and prominent Intellectual Properties (IP) have in steering new commercial entertainment VR business. Digital Out-of-Home entertainment (DOE) industry specialist Kevin Williams charts the major develops shaping this emerging new sector. One of the technologies gaining a strong interest from the deep pockets of this sector is the untethered backpack VR experience (Arena-Scale VR). The technology seen as the perfect medium to immersive the guest in the selected movie IP like-never-before, even some investors seeing this as a natural successor for the representation of the movie experience.
One of the most promoted developers of this approach has been The VOID, championing their ‘Hyper Reality’ concept. After many twists and turns the company opted to enter the race by presenting their technology within the Ghostbusters: Dimension attraction. Sony Pictures in partnership with operator Madame Tussauds investing in a walk-through waxwork attraction with a backpack virtual reality (VR) experience in support, commissioned from The VOID. The whole experience created as part of the marketing effort for the reboot of the famous Ghostbusters franchise, with the 2016 film.
The opening of the New York venue, though critically acclaimed and reported as seeing crowds, has yet to see the proposed roll-out at other Tussauds venues; but The VOID has opened a standalone Ghostbusters: Dimension attraction at JBR’s The Beach in Dubai. With a third installation charted for their new flagship entertainment facility in Utah, Nevada, scheduled to open to the public in July.
The growth in interest in movie properties having their own backpack VR experience was evident during CinemaCon 2017. New start-up Nomadic is an immersive entertainment company creating tactile VR adventures, and promoted at the conference their backpack VR experience (Arena-Scale), aiming to occupy a 20-foot-by-30-foot space. Not only seen as “Lobby Entertainment”, but targeting the existing screening rooms (auditorium), to be appropriated as standalone entertainment offerings with their own recurring revenue stream.
Major movie IP’s that have embraced Arena-Scale VR technology have started to reveal their plans thick-and-fast over the last few months – major movie studios such as 20th Century Fox, through their theme park arm (FoxNext Destinations) revealed that they are in the process of developing a 2,000 sq.,ft., multi-player VR experience based around the Alien movie franchise. FoxNext working to develop a ‘free-roaming’ VR experience undergoing secret testing. This new development building on the work creating a free cinema pop-up 360-degree VR journey called Alien: Covenant in Utero; the promotional lobby entertainment developed by FoxNext VR Studio in partnership with AMD Radeon and DELL.
Another major movie franchise receiving VR attraction investment was revealed to be in develop in partnership between Hasbro and DMG Entertainment, (through the recently established DMG VR division). The planned Transformers Experience Center is based on the popular Transformers IP that over the last 30-years has expanded to include comic books, animated series, films, video games and consumer products, the recent film properties generating $850 million internationally. The first interactive Transformers digital simulation experience center, scheduled to open in China this summer.
The application of arena-scale VR has been charted beyond the cinema landscape, with already Zero Latency establishing a growing number of locations for their multi-player backpack VR platform. The game system complimenting family entertainment centers and karting locations. A constant iterative process the operation launching their last multi-player backpack experience called Singularity with a play duration of 30-minutes in this space station exploration narrative. While at the same time announced that they were working on eight-player simultaneous experiences – while also planning to open the largest free-roaming virtual arena in America in the Boston-area later this year, and Philadelphia in 2018.
As previously reported the Asian amusement scene has jumped into out-of-home VR applications with both feet, in Japan investment in this approach has increased and Zero Latency, saw the first commercial installation of their system through a deal with SEGA at their JOYPOLIS site. Building on this, and a new location for Arena-Scale VR experiences opened within the brand new ‘SEGA VR Area’ location – taking over the top (6th) floor of the famous Club SEGA Akihabara amusement venue in Tokyo. The venerable Japanese amusement factory the latest to dip their toe into the waters of dedicated VR based out-of-home entertainment.
The first VR installation in this new space sees SEGA partner with Korean based Skonec Entertainment installing their new Mortal Blitz For Walking Attraction – a three player, backpack VR shooting experience, (using the Pimax 4K headset), opened to the public at the end of May. This destination facility approach following the work that the other amusement powerhouse BANDAI NAMCO Entertainment achieved with their first VR Zone: Project i Can temporary installation; BANDAI announcing that they will be opening a second version of their temporary VR Park in a matter of months in the Tokyo area. (Editor’s Note: For more about this check out two recent VRFocus stories about the experiences on offer including ones based on Mario Kart, Neon Genesis Evangelion, the Gundum franchise and Dragon Ball Z.)
Underlining the interest in using VR as an audience experience akin to a movie theatre or planetarium approach, and Japan has seen the launch of the VirtuaLink. A pop-up paid entertainment experience that has multiple guests sharing a virtual space, with a specially created 360-degree 3D video. Several locations around the Tokyo area will be turned into viewing theaters accommodating some 26 special seats (Wonder Pods) – the VR experience presented on Sony Interactive Entertainment (SIE) Playstation VR head-mounted displays (HMDs). The concept the closest seen to being a ‘virtual-planetarium’ experience, constructed by Konica Minolta Planetarium Corporation.
From those commentators entrenched outside of the out-of-home entertainment business, we have seen some wild and contradictory statements regarding the perceived impact of this business on the application of their hopes for VR – statements ranging from if VR is confined to public spaces there is a risk of stunting the growth of the medium, too comments that state to love to see these types of themed [VR] centers popping up around the world. A level of ignorance of the DOE market revealed in superficial research of the scene.
This confused speculation, illustrates the disquiet by some as their promised consumer sector slows, in the shadow of the growth (and revenue generating) out-of-home adoption; best illustrated by the growing numbers of consumer platforms pivoting to destination application. Along with HTC, we see OSVR (The VOID, Zero Latency) and StarVR (IMAX VR) deployment in VR arcade settings; it was recently announced in Japan of the new Virtual Gate platform developed by Techno Blood; allowing VR content to be enjoyed at the countries host of Internet Cafes, the platform partnered with the once consumer facing FOVE eye-tracked HMD – already operational at 33 net cafes in the country.
The commercial entertainment industry has proven an uncomfortable enigma to many that had previously invested in a promised consumer approach to VR. To educate and promote, the Digital Out-of-Home Entertainment (DOE) sector has invested in a unique conference in September, partly supported by my consultancy (KWP) and a major exhibition organizer. Based in Las Vegas, the Future of Immersive Leisure convention will bring together operators of the latest immersive entertainment technology, as well as developers of the hardware, and investors shaping the latest developers.
This new event will be the launch-pad where several new projects will reveal their thinking behind entering the commercial entertainment against previous interest in consumer investment. It is the ability to have direct access to the revenue stream, and a believable business model that has drawn both established operations and new start-ups to the DOE business for VR. Expect reports on the build-up to this event and industry developments in following columns.
The hopes for greater pixel density on future iterations of consumer VR head-sets are placed into stark comparison with the development in the planetarium business with the latest 8K projection systems. Industry leaders such as E&S, 
IMAX Corporations investment in VR has moved beyond using it as mere Pop-up promotion or ‘Lobby Entertainment’, the company board has invested heavily to develop their own estimations of what is needed create a chain of VR Arcade properties based on their movie experience – seen as a possible companion to the cinema visit, hoping to cement their future movie business. The first IMAX VR “pilot VR center” concept was opened in Los Angeles at the end of 2016, and based on initial reactions (with a reported some 20,000 visitations since the sites opening) has ramped-up development. Their second VR center opening in New York at the end of May, part of the exiting AMC Kips Bay 15 cinema, with a schedule to open additional sites in Manchester, UK, Shanghai and Japan. The concept visualized as an additional revenue component to an established cinema site, a rethinking of the traditional “arcade room” once seen at theaters.
With their movie industry clout, IMAX has been able to establish partnerships with leading movie studios towards creating exclusive content that will populate the high-end VR establishment. IMAX recently announcing an agreement with Warner Bros. Home Entertainment, a co-financing and production agreement to develop and release three premium, interactive VR experiences based in Warner’s upcoming movie properties. The first announced being ‘Justice League VR’ – debuting exclusively at IMAX VR centers, before consideration of a ported to consumer VR hardware. This movie cross-over investment also seen with the StarBreeze Studio developed promotional VR game experience 
Other major cinema chain operators have started their own moves in this direction – much of the investment seen coming from the vast Chinese cinema sector, the conglomerate Dalian Wanda having developed their Wanda VR concept placing the latest Chinese DOE VR hardware in their own ‘Lobby Entertainment’ presentation. A move that is expected to be replicated across their growing movie theatre empire, building on the 2016 announcement that Odeon and UCI Cinema Group had been acquired by AMC Entertainment group (part of the Dalian Wanda operation) for an estimated $1.2bn.
Along with the first New York facility, a second version of the site was opened in Dubai – a third site was also opened in their company’s home state of Utah, and along with running the Ghostbusters experience is being used to present their latest backpack and head-mounted display (HMD) platform with further games planned. The new executive structure within The VOID has revealed a new roll out plan for their location-based aspirations. Though still no word of the schedule on the first Chinese openings.
We have seen some retail venues incorporate directly an entertainment approach using VR technology, Samsung, no stranger to VR technology, are planning to embrace this approach, with 
Across the water, and North America has seen investment in this approach with the California seeing the opening of the first 
VR Gaming Enters the Fray
The recent VR / AR Gambling convention in Prague, marked the first dedicated conference run by specialist from the online and land-based casino industry, covering the impacts issues and opportunities for this technology in their business. And a second major exhibition in the United States (GiGse) late this month will see further discussion of this business pivot for the gaming industry, led by a presentation by KWP, concerning the VR promotional, operational and content development in the gambling and skill gaming sector.
Other Japanese arcade operators such as TAITO and Capcom revealed that they would be installing the VR Game Stage, powered by HTC hardware. HTC supporting the use of consumer content able to be legally used in commercial entertainment venues through the Viveport Arcade commercial subscription platform for China, and currently on test in Europe and the USA. A similar solution is planned from Valve for SteamVR – while Oculus VR stays opposed to any commercial usage (not prepared at this point to pivot).
But the big development, missed by many in the media was the announcement and reveal of Koei Tecmo, launching their ‘VR Sense’, an experience capsule using a Sony PSVR headset and Move controller (powered by an internal Playstation 4 Pro system). This system was the advance guard on the major announcement that Sony Interactive Entertainment would be creating a specific division to roll out their PSVR platform into the location-based (out-of-home entertainment) sector in several territories. The ultimate example of the pivoting of the consumer approach to VR into the commercial entertainment arena.
Also on the ASI booth was the WePlayVR system from developers AiSolve, running the VR Backpack experience called ‘The Mayan Adventure’. Also shown was the Yotto Group “VR Game Platform” EXOPLANE an immersive paraglider experience. At the Dubai exhibition, another major distributor in the territory supporting family entertainment center businesses is Warehouse of Games (WOG), the company had on their booth the local developer NUAT’s ‘The VR Cube’ another “VR Enclosures” approach. DEAL exhibitor FUNCO – Fun Entertainment Company, a prominent developer of turn-key solutions for operators wanting to open entertainment centers, partnered with Chinese VR Park developer LEKE VR, showing their full selection of “VR Game Platform” units that were seen foot-foot from the Chinese trade show premier.
Away from the major distributors, several standalone exhibitors showed VR aspirations. These included a “VR Ride Attraction” from Turkish developer AMEGA Entertainment – Cinecoaster 360 VR. This multi-directional motion XD cinema system using mobileVR headsets. Or exhibitor DOF Robotics who showed their HURRICANE 360 VR – a extreme motion platform system using mobileVR systems to represent the virtual experience, (the system a Bronze Virtual Reality Game BOSA award 2017).
Reflecting the interest in the territory to embrace VR in all its facets in the DOE sector, the local developer ImSim, demonstrated a 3DOF racing cockpit with force feedback and a power VR component. Many companies in the West have invested in motor sports network simulator (“Race Room”) ventures – and VR technology seen as a possible replacement to conventional flat screen visualization. American manufacturer CXC Simulations, is another name in this scene, having recently installed a “Race Room” at the Andretti Indoor Karking location in Marrietta. The venue running their latest CXC Motion Pro II VR system, the only VR simulator of its kind in commercial operation in the United States
Over the last few months of the beginning of 2017, our consultancy (KWP) specializing in the DOE sector has been rushed off its feet attending conventions and conferences as a speaker and observer on the latest inroads that are being made in the utilization of VR tech into the Out-of-Home scene, and I have attempted to encapsulate the key developments seen across the global business.
On the Show halls of both AAA and VR&AR, the exhibition booths were crammed with new VR offerings that moved to a new phase of investment, best described as a phase four for the market, moving beyond the original egg-shaped 9D VR film experiences, and the early VR arcade investment, and now to a brand-new approach to the business. Even the established amusement trade has been forced to consider deploying a VR solution in their venues. One of the large Asian amusement manufacturers and distributors, WAHLAP Technologies underlined their investment in this sector, by partnering with prominent VR Park developer Movie Power; the company showing a selection of the systems they field to VR Parks, including a unique HTC based VR boxing game called Kuntun Fight. Movie Power had an extensive booth of their own on the show floor, showing their latest networked driving simulator VR experience.
A consolidation has been achieved in the Chinese VR arcade scene, with investment consolidated into successful VR business, while a few scruple less operator have started to fall by the wayside. We have seen an evolution in the business approach seeing VR arcades (known as “VR Parks” in China), the business has seen major investment as the market has solidified into franchise operations, and revenue sharing opportunities.
As seen with VR roller-coasters in the West the utilization of existing attractions, with an added VR element has gained much interest, and new investment in this approach was seen on the Chinese show floor. VR attractions on display included from Hirain their 720° Rider a multi-dimensional VR motion platform comprising three-seater spinning the riders corresponding to a unique VR ride film. Veteran Chinese ride manufacturer Golden Dragon had their Hero Dream, a robotic arm two-seat VR platform. But a new approach was revealed from C&Q Amusement, the company taking their Spin Zone bumper-car platform, retrofitted with specially tracked VR head-mount game experience. The first of its kind VR bumper-car experience using a unique multiple tracking arena-scale solution. C&Q working on a flat-ride variant of the VR platform, offering a retrofit solution to established attractions.
That’s all for this week, but come back next Friday at the same time for part two, as Kevin Williams covers the American, Japanese and Dubai amusement trades’ interest in VR based Out-of-Home technology.
