E3 Increases our Confidence that 2016 Will Be a Breakout Year for VR
ABSTRACT: Last week, we attended E3, the gaming industry’s premier convention. Virtual reality was prominently featured, and we got to try the newest Oculus Rift and Sony’s Project Morpheus. Unfortunately, we couldn’t try Microsoft’s HoloLens, but we spoke with some gamers who waited up to 8 hours for the demo. Other gamers and industry enthusiasts we spoke with were adamant that virtual reality is real and will have a stable home within the gaming community. The hardware appears ready, and the games and content (which we believe will drive adoption) provide fantastic, immersive experiences. Given this, Sophic Capital is forecasting that tethered (i.e. excluding Samsung’s Gear VR and Google Cardboard) gaming VR head-mounted displays (HMDs) will be a $6 billion market by 2018. One way investors can profit in the virtual reality gaming space is to invest in Spectra7 Microsystems (TSXV:SEV; OTCQX: SPVNF), a Sophic Capital client. Spectra7 provides critical analog signal processing chips used in head-mounted displays tethered (cabled) to gaming computers and consoles.
View London Heist (our favourite game demo on Project Morpheus) here.