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Sony captures third of VR

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Strategy Analytics latest data on the VR headset market shows a decline in annual hardware revenues for the first time. As data in the VR Headset Forecast by Price Tier shows, this revenue decline is confined to the low-value segment, where Google’s Cardboard and Daydream products are losing traction. The VR Headset Forecast by Device Type shows continued growth in the Console and PC-tethered VR segments. Sony, Facebook (Oculus) and HTC are the big winners by revenue, as tracked in the VR Headset Platform Share data.

In 2018 VR hardware revenues declined slightly to $1.8B from $1.9B in 2017. The decline in shipments was much more dramatic, shrinking over 50% from 31m units in 2017 to only 15m units in 2018. Driving these changes is the evaporation of the market for low-cost VR headsets such as Google Cardboard, Google Daydream and Samsung Gear VR.

David MacQueen, Executive Director of Strategy Analytics’ VAR (Virtual and Augmented Reality) research program commented on the causes of this decline: “Brands and marketing agencies have transitioned budgets away from VR towards novel AR services such as Snapchat, so the giveaways of Cardboard headsets by brands such as the New York Times and McDonald’s have halted. Samsung and other vendors have largely ceased bundling VR headsets with smartphone sales. However, our research shows that consumers who have tried VR really enjoy the experience, and are seeking out higher-quality experiences with better headsets. The simple devices helped to drive demand, but their time is coming to an end. This is reflected in Google’s market share, which has dropped from a market-leading 21% in 2017 to 11% in 2018.

“The real winners in 2018 and 2019 have come from the higher price tier, higher-quality VR headset market segments, primarily those that are PC- or Console-tethered. Sony’s PSVR headset is continuing to sell well, and its position as the leading hardware vendor will be helped by the news that the PS5 will support the headset, removing fears of compatibility issues with next-generation consoles. HTC and Facebook continue to split the PC segment, which is expanding beyond consumer into enterprise markets, mainly around the design, training and education use cases. These segments will help drive growth in 2019 and beyond.”

David Kerr, VP at Strategy Analytics, says: “The data reflects a turbulent year for VR and a market in transition. With multiple carriers globally looking to VR as one of the use cases to demonstrate the potential of 5G networks, using VR as a marketing tool for 5G can be challenging. The right market entry strategy could define the winners and losers when it comes to VR and 5G.”

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Millennials turning 40: NOW will you stop targeting them?

It’s one of the most overused terms in youth marketing, and probably the most inaccurate, writes ARTHUR GOLDSTUCK

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One of the most irritating buzzwords embraced by marketers in recent years is the term “millennial”. Most are clueless about its true meaning, and use it as a supposedly cool synonym for “young adults”. The flaw in this targeting – and the word “flaw” here is like calling the Grand Canyon a trench – is that it utterly ignores the meaning of the term. “Millennials” are formally defined as anyone born from 1980 to 2000, meaning they have typically come of age after the dawn of the millennium, or during the 21st century.

Think about that for a moment. Next year, the millennial will be formally defined as anyone aged from 20 to 40. So here you have an entire advertising, marketing and public relations industry hanging onto a cool definition, while in effect arguing that 40-year-olds are youths who want the same thing as newly-minted university graduates or job entrants.

When the communications industry discovers just how embarrassing its glib use of the term really is, it will no doubt pivot – millennial-speak for “changing your business model when it proves to be a disaster, but you still appear to be cool” – to the next big thing in generational theory.

That next big thing is currently Generation Z, or people born after the turn of the century. It’s very convenient to lump them all together and claim they have a different set of values and expectations to those who went before. Allegedly, they are engaged in a quest for experience, compared to millennials – the 19-year-olds and 39-olds alike – supposedly all on a quest for relevance.

In reality, all are part of Generation #, latching onto the latest hashtag trend that sweeps social media, desperate to go viral if they are producers of social content, desperate to have caught onto the trend before their peers.

The irony is that marketers’ quest for cutting edge target markets is, in reality, a hangover from the days when there was no such thing as generational theory, and marketing was all about clearly defined target markets. In the era of big data and mass personalization, that idea seems rather quaint.

Indeed, according to Grant Lapping, managing director of DataCore Media, it no longer matters who brands think their target market is.

“The reason for this is simple: with the technology and data digital marketers have access to today, we no longer need to limit our potential target audience to a set of personas or segments derived through customer research. While this type of customer segmentation was – and remains – important for engagements across traditional above-the-line engagements in mass media, digital marketing gives us the tools we need to target customers on a far more granular and personalised level.

“Where customer research gives us an indication of who the audience is, data can tell us exactly what they want and how they may behave.”

Netflix, he points out, is an example of a company that is changing its industry by avoiding audience segmentation, once the holy grail of entertainment.

In other words, it understands that 20-year-olds and 40-year-olds are very different – but so is everyone in between.

* Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram on @art2gee

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Robots coming to IFA

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Robotics is no longer about mechanical humanoids, but rather becoming an interface between man and machine. That is a key message being delivered at next month’s IFA consumer electronics expo in Berlin. An entire hall will be devoted to IFA Next, which will not only offer a look into the future, but also show what form it will take.

The concepts are as varied as the exhibitors themselves. However, there are similarities in the various products, some more human than others, in the fascinating ways in which they establish a link between fun, learning and programming. In many cases, they are aimed at children and young people.

The following will be among the exhibitors making Hall 26 a must-visit:

Leju Robotics (Stand 115) from China is featuring what we all imagine a robot to be. The bipedal Aelos 1s can walk, dance and play football. And in carrying out all these actions it responds to spoken commands. But it also challenges young researchers to apply their creativity in programming it and teaching it new actions. And conversely, it also imparts scholastic knowledge.

Cubroid (Stand 231, KIRIA) from Korea starts off by promoting an independent approach to the way it deals with tasks. Multi-functional cubes, glowing as they play music, or equipped with a tiny rotating motor, join together like Lego pieces. Configuration and programming are thus combined, providing a basic idea of what constitutes artificial intelligence.

Spain is represented by Ebotics (Stand 218). This company is presenting an entire portfolio of building components, including the “Mint” educational program. The modular system explains about modern construction, programming and the entire field of robotics.

Elematec Corporation (Stand 208) from Japan is presenting the two-armed SCARA, which is not intended to deal with any tasks, but in particular to assist people with their work.

Everybot (Stand 231, KIRIA) from Japan approaches the concept of robotics by introducing an autonomous floor-cleaning machine, similar to a robot vacuum cleaner.

And Segway (Stand 222) is using a number of products to explain the modern approach to battery-powered locomotion.

IFA will take place at the Berlin Exhibition Grounds (ExpoCenter City) from 6 to 11 September 2019. For more information, visit www.ifa-berlin.com

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