Sanqi entertains Yifei Yi: The VR market will eventually detonate content

On September 19th, Fortune magazine selected “50 Chinese business pioneers who defined the future”. Through this list, the diversification trend of the Chinese economy is ready to come. Besides the well-known faces of the manufacturing, finance, and information industries of Chairman of the US Group Fang Hongbo, Ant Financial CEO Peng Lei, Tencent CEO Ma Huateng, etc. The leaders of emerging culture industries such as Li Yifei, Lan Hong Kong’s interactive CEO Wang Feng, and teaser CEO Chen Xiangyu emerged. Since the beginning of this year, three to seven mutual entertainment in the large cultural entertainment activities frequently, the founder Li Yifei has also attracted much attention from the industry.

Li Yifei has fought for five years in the emerging cultural industry. He experienced the glittering age of the page travel era and witnessed the crazy blowout of mobile phone products after the popularization of smart phones. These are the most precious experiences for Li Yifei’s career. . In addition to the identity of the president of the listed company, Li Yifei performed more like a senior industry observer in his usual interview.

"In the future, no matter how technological innovations are made, the spiritual and cultural connotations of content products will always be more appealing to people's hearts." In an exclusive interview, Li Yifei expounded his understanding of emerging cultural industries in the Internet age with a slightly emotional tone. In the author's opinion, this sentence can also be used to interpret the investment action of AAA in the field of VR content this year.

In March 2016, when many Internet technology companies hit the ceiling in the VR hardware field, the news that 37.67 million US dollars was invested in Archiact, a Canadian VR game developer, was overwhelming. Instead of speculating whether Li Yifei had already foreseen the culmination of VR's low-end hardware field, it was better to say that the "content is king" creed allowed him to bypass unnecessary difficulties.

Technology hardware is too "high cold" and content with "temperature" can open the consumer market

In March 2014, Facebook announced that it had spent 2 billion US dollars to acquire Oculus, a VR hardware company that had just been established for two years. This move has not yet subsided in the industry. Google also launched its own high-profile launch at the I/O Developer Conference. Developed cheap VR hardware Cardboard. Hardware, cheap, future technology, these key words have touched the nerves of domestic Internet technology practitioners. In China, there is a hardware supply chain in Shenzhen Huaqiang North near the waterfront, as long as the provision of Google Cardboard samples, Huaqiang North will be able to rapidly produce more affordable "optimized version."

As a senior Internet practitioner, Li Yifei naturally noticed the business opportunities contained in it. He repeatedly speculated the possibility of low-end VR hardware industry in the next two to three years, and squeezed time to personally inspect the domestic and international VR industry chain . After combing out any VR industry-related information that he could capture, he chose to stay on the move and wait and see what changed during this wave of VR hardware investment boom.

There are three reasons for Li Yifei to make this decision: First, the hardware field is not the home ground for the 37 games. As a newcomer, the hardware giant will certainly not be able to compete with the current hardware giant; Second, the low-end VR hardware experience is bad, the high-end hardware development costs And the price is too high, consumers will not buy it; the third and most critical point is that, in recent years, the process of development of technology hardware has often been re-used. It is not the hardware configuration that ultimately opens the consumer market, but the application content.

It is difficult to obtain the attention of consumers simply because of the “high-cold” VR hardware. If it is truly able to give viewers a shock and a desire to purchase, it must be “having temperature”. “Temperature” is the cultural connotation contained in the content product. It can be a touching storyline, a beautiful picture art or a well-designed level and gameplay in the game. These are the highlights of the content product. Easiest to open the core of the market breakthrough. Only the “temperature” of the content can resolve the icy cold of hardware technology. VR headshot can be accepted by consumers as the “eye” of the direct-viewing virtual world. It will replace the mobile phone as another electronic organ of human beings.

"Killer" app will now, Bole wins double dark horse

At the beginning of 2015, Li Yifei embarked on a journey to find a VR R&D team. VR content development is an unfamiliar area for the self-discipline team of Sanqi Inter Entertainment. The idea of ​​Li Yifei is to first invest in mature VR game R&D teams to seize the opportunity of VR content supply, and in the process can further absorb these. The team’s R&D technical experience and human resources.

He looked around the application development team with VR and tried to find a talent team that could develop "killer" applications. Li Yifei once predicted: “The price of VR equipment will be reduced by half from 2017 to 2018, and the performance will also be doubled. Then the VR application with the ability to detonate the market will come to the fore.” Prior to this, he must develop this as soon as possible. The "killer" application of the dark horse team established a partnership.

In July 2015, the friend introduced Li Zhifei to the Canadian VR startup team Archiact. This team has two years of experience in VR content development. More than 40 members are from tech giants such as Facebook and Google, and various games such as “Lamper VR” and “Waddle Home” developed by them have been recommended by major VR application stores. Even they have rich offline VR game operation experience.

While establishing communication with Archiact, Li Yifei also identified another company in the country that has a similar talent background - Tianshe culture. The company's main creation was from 2KGames and a five-star review room escape offline store. Since 2014, it has been developing the VR game development. It is called by the industry as one of the “oldest three” of the VR game team. Tianshe Culture has a strong ability to control the VR game screen. Its R&D heavy room puzzle solving product “The Crybaby” is well-known in the industry.

Analyzing the two VR content teams will find that there is a strong synergy between the two. They are located in two major domestic and overseas markets, each with specialization in light and heavy areas, but also covering the scope of online distribution and offline operations.

More crucially, in the current VR hardware experience is not perfect, the two teams can extract the maximum value of hardware capabilities, to develop a unique work for the players to shine. Archiact's casual games are famous for its playfulness and interactivity, presenting the gameplay's proper playability and VR technology's unique operational interactions to players; while the representative of Tianshe's culture is "Crybaby". Exquisitely studied, it is also true that the VR world's castle in the air is restored to true and true. The design of the puzzle is also very colorful. It inherits the strength of the style of the mystery novels of this school.

Although the technical bottleneck of VR hardware has limited the imagination of the content, Archiact and Tianshe culture have learned to free the focus of game development from the dependence on hardware, and return to the game culture to pursue the connotation of gameplay, screen and story. Such research and development concepts coincide with Li Yifei’s view of hardware technology and cultural content—hardware technology is important, but the cultural connotation contained in the content is more critical. Under his impetus, Sanqi Mutual announced their investment plans for Archiact and Tianshe culture in March and July 2016 respectively, completing the first round of layout in the VR content area.

After the consumer market breaks ice, VR content will usher in a bonus period

Li Yifei believes that even if VR is not ignited in 2016 or 2017, it will erupt in 2020 at the latest. Regardless of the layout of VR hardware or application content in the initial period, analysis from long-term investment perspective is beneficial. Only the current hardware market structure has been set, the high-end market is occupied by HTC, Facebook and SONY. The low-end market is full of experiences of bad VR boxes. Now investing 10 million in the hardware field cannot be seen at all. On the other hand, in the mass consumer market, the freezing point of VR hardware penetration has never been broken.

Empty VR hardware is not enough to convince people that VR is a future trend. The current VR devices are just like PCs before the millennium. For medium-sized consumer groups and large base groups, it is still full of many unknowns. Is it necessary to buy a VR device? Is VR really as shocking as the media say? Will people with poor gameplay levels be more clumsy when playing VR? These doubts are not within the scope of hardware technology. Instead, the content of the application can be viewed intuitively. Let the experiencer dispel doubts. Whether the VR game is fun or not, and how difficult it is to get started, players who played a VR game have their own answers.

As Li Yifei said, the ultimate desire for consumption is not the parameters of the hardware, but the content of the content. The breaking ice of VR hardware penetration cannot continue to rely on cold hardware, but more “temperature” content is required to melt consumers' doubts and concerns in the face of unknown things.

At present, there is still a large space for growth in the number of VR content worldwide. As of the end of August 2016, the total number of mainstream VR content platforms for Steam, Oculus Home (including Gear VR) and Viveport has reached 1,095 (not lost), and is expected to reach 3,000 at the end of this year. Looking back at the eve of the global eruption of smartphones in late 2010, the number of App App and Android Market (predecessor of Google Play) apps in their respective applications entered the high-speed period, and they continued to grow at a rate of 10,000 monthly and 30,000 per month. The total number of APPs in the two smart phone application markets was nearly 550,000 (not heavy). In contrast, the current VR application content is still seriously lacking.

Looking at the issue from another perspective, the vacancy in the market for VR content has also brought unpredictable development space for the development of dark horses such as Archiact and Tianshe culture as well as Bole, such as Li Yifei. With the inevitable decline in hardware costs and the inevitable increase in the number of applications, VR's popularity in the mass consumer market will eventually come. There will be a period of benign mutual promotion between the installed capacity of VR equipment and the amount of VR content. The VR developers and investors behind the VR content will also enjoy more and more stable demographic dividends. .

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