• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechVirtual Reality

4 Challenges Facing the Growing Virtual Reality Industry

By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
September 16, 2016, 6:57 PM ET
Photograph by Benjamin Torode — Getty Images

Companies and investors may be pouring millions of dollars into virtual reality, but it’s not all boom times for the emerging technology.

Although innovative virtual reality headsets like Facebook’s (FB) Oculus Rift and the HTC Vive have generally received good reviews, it seems like it’s still going to be a little while until VR becomes mainstream.

A report this week on the state of VR by law firm Perkins Coie and VR advocacy group Upload highlighted some of the challenges facing the VR sector. The research was based on a survey of 653 respondents, including VR entrepreneurs, executives, investors, and consultants.

Get Data Sheet, Fortune’s technology newsletter.

Here’s four interesting takeaways from the report:

1. Big, bulky headsets still look silly

Although the power of virtual reality headsets (combined with beefy computers) to generate breathtaking visuals has increased in recent years, the same can’t be said for the headset designs themselves. The report said that “bulky, restrictive equipment” and technical glitches are still two “key historical drawbacks for the industry” that need to be overcome before the technology becomes widespread. It’s true that modern-day headsets are smaller and generally sleeker than they have been in the past, but it doesn’t change the fact that people still have to wear them on their face.

2. There’s not a whole lot of interesting VR media

The first time a person tries out a virtual reality headset may be an eye-opening experience. However, there’s a sort of law-of-diminishing returns effect after the novelty of being thrown into a 3D environment wears off. This is because there hasn’t been a so-called “killer app” that keeps people interested enough to spend hours upon hours wired up to their headsets. One survey respondent said that well-liked video game consoles like those from Nintendo and Sega only became popular because of the games that accompanied them.

3. Potential legal issues don’t seem to bother the VR industry

Players in the young and emerging VR industry haven’t considered potential legal risks that the technology possibly exposes them to. The report explains that regulators have expressed concern with data privacy and cybersecurity issues that could arise out of the new tech, especially as it relates to how the VR companies use the data they might collect from their users. The report cites U.S. Senator Al Franken who said of the augmented-reality game Pokémon Go that it “may be unnecessarily collecting, using, and sharing a wide range of users’ personal information without their appropriate consent.”

For more about virtual reality, watch:

4. It’s challenging for content makers to make deals with VR companies

It’s tough being a media business or content developer trying to get a deal with a VR-centric company. The report’s authors said that content developers are facing stiff competition from other content developers when trying to score deals with VR companies. Additionally, although companies say they are looking to invest in a VR content project—like a short film or video game—the lack of major successes has them feeling hesitant. One survey respondent wrote “There is always interest, but getting companies to fully fund projects is a different story.”

 

About the Author
By Jonathan Vanian
LinkedIn iconTwitter icon

Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Artemis III will practice docking Orion with lunar landers in Earth orbit next year while Musk’s Starship and Bezos’ Blue Moon compete for Artemis IV
InnovationNASA
Artemis III will practice docking Orion with lunar landers in Earth orbit next year while Musk’s Starship and Bezos’ Blue Moon compete for Artemis IV
By Marcia Dunn and The Associated PressApril 12, 2026
20 minutes ago
$12 billion crypto company boss says Gen Z ‘create an absurd amount of chaos’ and make him want to pull his hair out—but he’s betting on them anyway
SuccessGen Z
$12 billion crypto company boss says Gen Z ‘create an absurd amount of chaos’ and make him want to pull his hair out—but he’s betting on them anyway
By Orianna Rosa RoyleApril 12, 2026
4 hours ago
mueller
CommentaryEntrepreneurship
I grew up in a family of entrepreneurs. Here’s what I had to unlearn to build a $1 billion business
By Samuel MuellerApril 12, 2026
4 hours ago
grantham
Investingbubble
Legendary investor says the AI boom masks a deeper crisis: Falling sperm counts, shrinking populations, and vanishing resources
By Nick LichtenbergApril 12, 2026
4 hours ago
Wemimo Abbey and Samir Goel, the cofounders of fintech company Esusu
SuccessCareers
These cofounders quit corporate jobs, took on $100K in credit card debt, and slept in a Denny’s—now their $1.2B company is backed by Serena Williams
By Emma BurleighApril 12, 2026
5 hours ago
Born in Soviet Union, Grindr CEO was told he had two career options: Learn English or how to shoot a gun
SuccessThe Promotion Playbook
Born in Soviet Union, Grindr CEO was told he had two career options: Learn English or how to shoot a gun
By Orianna Rosa RoyleApril 12, 2026
6 hours ago

Most Popular

'This is the last warning.' Iran threatens U.S. warships after they throw down the gauntlet for winner-take-all Strait of Hormuz
Politics
'This is the last warning.' Iran threatens U.S. warships after they throw down the gauntlet for winner-take-all Strait of Hormuz
By Fortune EditorsApril 11, 2026
17 hours ago
Palantir CEO says AI ‘will destroy’ humanities jobs but there will be ‘more than enough jobs’ for people with vocational training
Future of Work
Palantir CEO says AI ‘will destroy’ humanities jobs but there will be ‘more than enough jobs’ for people with vocational training
By Fortune EditorsApril 11, 2026
1 day ago
The 'affordability economy' has created a housing market nobody predicted: Prices collapsing in the Sun Belt, soaring in the Rust Belt
Real Estate
The 'affordability economy' has created a housing market nobody predicted: Prices collapsing in the Sun Belt, soaring in the Rust Belt
By Fortune EditorsApril 11, 2026
1 day ago
Warren Buffett says 'accumulating great amounts of money' doesn’t achieve greatness—He still lives in a $31,500 Nebraska home and clipped coupons
Success
Warren Buffett says 'accumulating great amounts of money' doesn’t achieve greatness—He still lives in a $31,500 Nebraska home and clipped coupons
By Fortune EditorsApril 11, 2026
1 day ago
Navy tests Hormuz blockade as expert says U.S. military prepares for round 2 and could degrade Iran's hold over the strait to a 'manageable level'
Politics
Navy tests Hormuz blockade as expert says U.S. military prepares for round 2 and could degrade Iran's hold over the strait to a 'manageable level'
By Fortune EditorsApril 11, 2026
22 hours ago
2 years ago, Saudi Arabia quietly canceled the ‘petrodollar’ deal with America that wired the world economy for 50 years. Then war broke out in Iran
Energy
2 years ago, Saudi Arabia quietly canceled the ‘petrodollar’ deal with America that wired the world economy for 50 years. Then war broke out in Iran
By Fortune EditorsApril 7, 2026
5 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.