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Cloudhead Games CEO Critiques Apple Vision Pro's Exclusion of VR Integration

Cloudhead Games CEO Discusses Apple Vision Pro: AR Headset Wearing VR Clothes


Introduction:

Cloudhead Games, a prominent virtual reality (VR) studio in the industry, has gained significant success over the years. In this guest article, Denny Unger, the CEO of Cloudhead Games, shares his insights and opinions on Apple's entrance into the augmented reality (AR) and VR space. Unger delves into the features and potential of Apple Vision Pro (AVP), highlighting its primary focus on AR while neglecting the benefits and potential of VR. He questions Apple's strategic decision to exclude VR studios and popular titles from their device, and he further emphasizes the importance of inputs and haptics in VR experiences. Additionally, Unger sheds light on the remarkable growth of the VR market in recent years and sees an opportunity for Apple's competitors to invest in VR as a complementary revenue stream within the mixed reality ecosystem.


1. Apple Vision Pro: Apple's First Generation AR Glasses

1.1 Introduction to Apple Vision Pro

Apple Vision Pro (AVP) represents Apple's first-generation attempt at AR glasses, combining elements of mixed reality and VR. It serves as a development platform targeted at enthusiasts and carries a premium price tag. AVP provides developers with a powerful foundation and ecosystem to create AR applications, with the intention of paving the way for future "glasses formfactor" devices within the next 5-10 years.


2. Apple's Strategic Omission of VR

2.1 Debates and Rumors at Apple HQ

Within Apple's headquarters, it is rumored that there were numerous debates regarding the inclusion of VR in AVP. Apple had to make decisions about whether to open the device up to VR studios and successful titles and whether to include controllers to support legacy VR experiences. Additionally, the company had to determine whether users would have the freedom to fully immerse themselves in VR, with the ability to move around and be active in the virtual environment. However, in an effort to establish a dominant position in the AR space, Apple deliberately omitted VR from its messaging and strategy.


2.2 Expert Omission of VR in Apple's Messaging

As an XR (extended reality) business owner, Unger understands Apple's strategy to strike a different chord in the market. However, as the CEO of a VR-centric studio, he expresses his frustration with Apple's decision to downplay the importance and potential of VR. Apple's presentation of VR as a gimmick, merely something to be touched at the edges, disregards the significant progress, growth, and competition that VR has experienced in recent years. Unger believes that Apple could have embraced a dual launch strategy, combining AR and VR to appeal to a broader audience and capitalize on VR's success and market presence.


2.3 Limitations in Unity Engine Support and Motion Control

While Apple promises Unity engine support for AVP, it disappointingly lacks plans for motion control support. By excluding motion control, Apple eliminates the possibility of porting existing and future VR catalogs to its platform. Many VR games developed over the past decade, with numerous others currently in production, heavily rely on inputs and haptics to reinforce immersion and provide tactile interaction with virtual objects. The absence of buttons, triggers, and haptic feedback in hand-tracking-only design limits the potential for translating these VR experiences to AVP. Unger argues that conventions and feedback from controllers have evolved over the years to create highly refined game design standards and a particular kind of muscle memory within the gaming population.


3. The Importance of Inputs and Haptics in VR

3.1 Affordance of Hand-Tracking in AR

Hand-tracking is undoubtedly a logical affordance for AR-based spatial computing, and certain experiences can work well with this design philosophy. Unger acknowledges the value of hand-tracking in AR, particularly for spatial interactions and intuitive gestures. It allows users to interact with virtual objects in a more natural and immersive way, enhancing the sense of presence. In AR applications, hand-tracking can be an effective input method for tasks such as manipulating objects, drawing in the air, or navigating through menus.


3.2 Incompatibility of VR Games with Hand-Tracking Design

However, it is important to point out that the majority of VR games developed over the past decade, and many more in production, are not compatible with hand-tracking-only design. VR experiences rely heavily on the use of controllers, which provide a range of inputs and haptic feedback essential for immersive gameplay. Buttons, triggers, and physical touchpoints offer a level of familiarity and precision, allowing users to interact with virtual environments in a way that aligns with the established conventions of gaming. Attempting to transition these VR games to a hand-tracking-only design would require significant rework and compromise the immersive and interactive aspects that players have come to expect.


3.3 Immersion and Tactile Interaction in VR

In VR, inputs and haptics play a vital role in reinforcing immersion and creating a sense of presence. The ability to push buttons, pull triggers, experience vibrational feedback, hold and throw objects, and use alternative movement schemes are fundamental elements that contribute to the overall experience. These interactions provide users with a tangible connection to the virtual world, bridging the gap between the physical and digital realms. By removing these elements, the sense of presence and the feeling of being fully engaged in the virtual environment are diminished.


3.4 The Evolution of Input and Muscle Memory in Gaming

Over the past 50 years, gaming has witnessed a continuous evolution of input methods, leading to the establishment of refined game design standards. Controllers have become an integral part of gaming, offering a familiar interface and enabling precise control for a wide range of genres. The gaming population has developed a muscle memory and an understanding of the topological landscape of controllers, which contributes to the overall gameplay experience. While some may argue that new innovative standards will replace controllers, Unger pushes back, asserting that moving away from future haptic devices and innovation is a regressive step in XR design. Touch-based interactions, even in smartphone games, acknowledge the foundational importance of touch and its role in enhancing the human experience.


4. VR's Mainstream Growth and Apple's Perspective

4.1 VR's Mainstream Success with Quest 2, PSVR2, and Partnerships

Contrary to the notion that VR is not yet mainstream, Unger highlights the significant milestones that demonstrate VR's increasing popularity and market presence. The success of devices like the Oculus Quest 2, which outsold the Xbox, and the anticipation surrounding the upcoming release of the PSVR2 by Sony, indicate a growing demand for immersive VR experiences. Furthermore, notable partnerships between companies like Google and Samsung signify the industry's commitment to exploring and advancing the future of VR.


4.2 VR's Hockey Stick Growth in the Last Three Years

Unger emphasizes that VR has experienced remarkable growth in the last three years. The industry has witnessed a steep upward trajectory, commonly referred to as the "hockey stick" growth curve. This growth is evident in the increased investments from original equipment manufacturers (OEMs) and the steady stream of titles generating revenues surpassing $20 million. These indicators illustrate the market's validation of VR as a legitimate and commercially viable medium.


4.3 Investments and Revenues in the VR Market

Investments in VR have continued to surge as companies recognize its potential. Venture capital firms and major players in the technology sector are actively supporting VR development and investing in hardware, software, and content creation. Additionally, VR experiences have demonstrated their revenue-generating capabilities, with several titles surpassing the $20 million mark. This level of financial success indicates that VR is not just a niche market but a medium that resonates with consumers and motivates them to invest their hard-earned money.


5. The Opportunity for Apple's Competitors

5.1 AVP's Unique Opportunity for Competitors

While Apple's strategic omission of VR from AVP may disappoint VR-centric studios like Cloudhead Games, it also creates an opportunity for Apple's competitors. Unger suggests that rival companies can double down on supporting virtual reality at a more affordable entry point, capitalizing on the gap left by Apple's exclusive focus on AR. By embracing VR as a complementary revenue stream within the mixed reality ecosystem, these competitors can attract VR enthusiasts and leverage the existing VR content library to expand their market share.


5.2 Blending AR and VR in a Mixed Reality Ecosystem

Unger argues that instead of solely pursuing the elusive goal of a smartphone replacement, Apple's competitors could adopt a more comprehensive approach by incorporating both AR and VR. By embracing VR's success and integrating it into a blended mixed reality ecosystem, these companies can tap into the potential of both mediums. This approach would not only provide users with a wider range of immersive experiences but also enable a smooth transition from VR to AR and vice versa, catering to different user preferences and needs.


5.3 Timing and Learning from the Past

Unger acknowledges that the journey toward mainstream adoption of VR has taken time, with lessons learned along the way. However, he believes that after ten years of development and growth, the path ahead for VR has never been clearer. Apple's decision to focus primarily on AR may be influenced by the perceived timing of VR's mainstream potential. However, Unger points out that the significant advancements and market indicators in recent years solidify VR's position as a legitimate medium with a dedicated audience.


Conclusion:

Denny Unger, the CEO of Cloudhead Games, shares his perspective on Apple's entry into the AR and VR space with Apple Vision Pro. While acknowledging the potential of AVP as an AR development platform, he expresses frustration with Apple's strategic omission of VR and the impact it may have on the industry. Unger emphasizes the importance of inputs and haptics in VR experiences, highlighting the limitations of hand-tracking-only design. He further highlights the significant growth and success of VR in recent years, refuting the notion that VR is not yet mainstream. Unger sees an opportunity for Apple's competitors to embrace VR and incorporate it into a blended mixed reality ecosystem, providing users with a broader range of immersive experiences. Ultimately, he encourages the industry to recognize the value of both AR and VR and to explore their potential within a comprehensive XR landscape.

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