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Virtual and Augmented Reality: The Players and the Game

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Virtual and Augmented Reality: The Players and the Game

Virtual and Augmented Reality: The Players and the Game

Virtual reality has been exiled to the dreaded trough of disillusionment for years, but it is finally on the path to escape. Products such as Oculus Rift and the HTC Vive are continuously wowing both users and investors, and these technologies will clearly play a significant role in the future of movies and gaming.

Despite this emergence, it is another related technology that has shown even more potential. The market for augmented reality will be worth 3x as much as the market for virtual reality in the coming years, according to a recently updated estimate from AR/VR advisory firm Digi-Capital.

What’s the difference between the two?

Virtual reality offers a closed and fully immersive experience for users inside a virtual world.

Augmented reality offers an open and partly immersive experience that makes virtual elements visible in the real world.

Augmented Reality and Virtual Reality market size

The Players

While devices such as smartphones can offer some basic aspects of augmented or virtual reality, there are now several companies in both fields that are on the verge of bringing game-changing products to the mass market.

Facebook made an early bet buy purchasing Oculus Rift for $2 billion in 2014, which is now considered the leader in virtual reality. Phone and game console manufactures have also anted up with Sony, HTC, and Samsung all actively developing products in the ecosystem.

On the augmented side, it’s the Google-backed Magic Leap as well as the Microsoft’s HoloLens that are considered key players for hardware. Apple has also acquired AR software maker Metaio, but has kept plans under wraps.

Aside from the big companies involved, there are also plenty of smaller startups in virtual and augmented reality. CB Insights has created a list of venture capital investments, sorted by firm, in these technologies: (click to expand)

The most active VR and AR Investors 2011-2015

What’s Ahead in 2016?

This year is expected to be a big one for virtual and augmented reality technologies. The TED Conference in Vancouver, BC was littered with VR/AR experiences, and the technology has become the primary focus of the CES event in Las Vegas.

Oculus Rift, HTC Vive, and Sony are expected to bring early VR headsets to market. Meanwhile, the low-cost Google Cardboard will continue to whet everyone’s appetite for more immersive virtual reality experiences in the meantime.

The mystery surrounding Magic Leap will continue to grow, and many expect a reveal from the secretive Florida startup in 2016. The sleeping giants, Apple and Amazon, could also wake up this year after keeping their VR and AR efforts highly-veiled thus far.

Original graphics by: Manatt Digital Media, CB Insights

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Charting Grand Theft Auto: GTA’s Budget and Revenues

Dive into the GTA budget through the years, with GTA VI set to be the most expensive video game of all time.

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A cropped chart comparing the GTA budget and revenue across three game titles.

Charting Grand Theft Auto: GTA’s Budget and Revenues

Over 10 years since the launch of Grand Theft Auto V (GTA V), the second most-sold video game in history, Rockstar Games has announced its sequel GTA VI will be “coming 2025.”

As the anticipation only grows for this next big entry in the franchise, we take a look at the GTA budget through the years. How much have the last two games cost to make, how much have they earned, and how do they compare with the latest entry?

Data for this visualization comes from Statista, TweakTown, and Twitch Metrics.

How Much Has GTA VI Cost to Make?

The GTA franchise has grown enormously in scale from humble beginnings as a top-down, 2D video game in 1997. Fifteen installments later, the upcoming release, GTA VI, is estimated to be the most expensive video game to be made yet.

Here’s a look at how much GTA VI and the last two major releases cost, and how much revenue they’ve earned as of August 2023.

YearTitleProduction Costs ($)Revenue ($)Copies Sold
2025 (est.)GTA VI$2B (rumored)N/AN/A
2013GTA V $265M$7.7B185M
2008GTA IV$100M$2B25M

In 2008, GTA IV cost around $100 million—already a budget that rivalled big Hollywood releases. However with 25 million copies sold, the game earned nearly $2 billion—a five-fold return on its production cost.

Five years later, GTA V (2013) cost more than $200 million to make—twice GTA IV’s budget. A decade after its release, GTA V has generated close to $8 billion, with hundreds of millions in annual revenue from subscriptions and in-game purchases—a model that its successor is sure to follow.

In fact, subscription fees and in-game purchases represented 78% of Take-Two Interactive’s (parent of GTA developer Rockstar Games) revenues in 2023.

Analysts estimate the to-be-released GTA VI’s costs at $2 billion, including marketing and other expenses. A massive open-world (set in the Miami-inspired “Vice City”), cutting edge graphics, and a reportedly brand-new game engine are all reasons for the game’s outsized budget.

For comparison, the current most expensive games to have been made include Red Dead Redemption 2 (also by Rockstar) and Star Citizen, both reportedly with a $500 million budget.

Meanwhile, Take-Two Interactive shares are up more than 50% for the year.

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