Virtual Reality (VR) is the new craze sweeping the gaming industry, or at least that’s what companies will have you believe. Undoubtedly, there is huge interest in what could be the future medium of choice for visual entertainment, but we are not quite there yet. There are a host of companies that are going to be impacted by the success or failure of this new platform, from those on the front-line, to those creating components.
Perhaps the most obvious company at the forefront of the VR revolution is Sony, which offers the only headset designed specifically for a console, the PlayStation 4. This certainly gives the firm a benefit over its competitors, given gamers will often be open to investing money in an additional accessory that, on this occasion, breathes a new lease of life into the current console.
Initial sales have been strong to some extent, with almost one million units sold in the first four months (Sony expected it to take six months). At the current rate, it will be difficult to generate sufficient interest from game developers, who will likely see the target audience of their game as too restrictive to allocate a significant amount of funding into a VR game quite yet. This could be an issue across the industry while it is in its infancy.
We are talking about a major company here, so the share price only partially reflects the success of the VR product. The share price has performed well over recent years, which would be expected to continue should the VR really take off. The 76.4% resistance (3315) appears to be acting as a barrier for now, yet the ascending channel remains relevant, with further gains seemingly likely. A break back above 4044 would be a major sign that we are set for a period of significant strength for the firm.