1VR/AR Innovation Report Presented byWelcome to the second annual VRDC VR/AR Innovation Report. The data in this report was gathered from surveying over 600 professionals involved in the development of virtual, augmented, and mixed reality experiences. The wealth of data it contains is intended to offer useful insight into a rapidly growing and diverse industry.Some of the many interesting findings from this survey include a clear rise in the popularity of the HTC Vive and the Oculus Rift among industry professionals, an increasing interest in developing platform-exclusive experiences, and an understanding that most devs believe VR is a profitable, sustainable industry but only in the mid- to long-term.This data was collected, organized and presented by the UBM Game Network, which runs the Virtual Reality Developers Conference (VRDC) as well as the Game Developers Conference (GDC) and Gamasutra.com.VRDCs next event will take place in San Francisco from September 21-22, 2017, bringing together creators of immersive experiences of all kindsincluding games, entertainment, brand experience, healthcare, training, design, and more.UBMGameNetwork.comVR/AR Innovation Report | June 2017Register for VRDC Fall 2017 2What Kinds of Experiences are VR/AR/MR Developers Making?Given the broad scope of possibility in VR/AR/MR development, we thought it would be informative to survey industry professionals on what sorts of experiences theyre focused on making.When we asked survey respondents about the focus or focuses of their current or potential work in VR/AR/MR development, the majority (78 percent) said Games/Entertainment. The second most popular response proved to be Training/Education, which was selected by 27 percent of respondents. Branded Experiences took third, with 19 percent of respondents saying such productions (think: car showrooms or vacation hotspots, rendered in VR) were focuses of their work.HTC Vive Remains the Most Popular Platform Among VR/AR/MR Devs But Rift is Poised to Close the GapIts a perennially important question: what hardware are VR/AR/MR industry professionals targeting, and why?When we put the question to our survey respondents this year, their responses roughly matched up with the results of our inaugural Innovation Survey last year. Game/Entertainment 78%Training/Education 27%Branded Experiences 19%Industrial/Product Design 15%Medical/Healthcare 14%Retail/Commercial 11%Travel 7%Real Estate 6%Other 13%What is the focus of your current/potential work in VR, AR, or mixed reality? UBMGameNetwork.comVR/AR Innovation Report | June 2017Register for VRDC Fall 2017 3When asked which VR, AR, or MR headsets they were targeting right now, more than half (56 percent) of respondents said the HTC Vive. 49 percent said they were targeting the Oculus Rift, and 33 percent said they were developing experiences for Samsungs Gear VR platform. Compared against last years survey results, we see a small but notable uptick in developer interest in the HTC Vive and the Rift. Last year, 49 percent of survey respondents said they were targeting the HTC Vive, 43 percent said Oculus Rift, and 34 percent said Samsungs Gear VR.Also, this is the first year we asked about Magic Leap, the mixed-reality platform thats long been in development but has yet (at least, as of this publication) to really be presented to the public or given any public release date. Given how mysterious the platform yet is, its interesting to note that 3 percent of survey respondents (or roughly 20 people) said they were currently focused on creating experiences for Magic Leap. HTC Vive 56%Oculus Rift 49%Samsung Gear VR 33%Google Cardboard 24%Google Daydream 24%PlayStation VR 19%Microsoft HoloLens 16%Google Tango 5%Magic Leap 3%None 19%Other 10%Which VR, AR, or mixed reality platform(s) are you developing for right now? (choose all that apply)UBMGameNetwork.comVR/AR Innovation Report | June 2017Register for VRDC Fall 2017 4But if we look to the future, it appears as though Rift may be poised for a bit of a resurgence among devs. When we asked our kind survey respondents which VR/AR/MR platform(s) their next project would be released on, 52 percent said HTC Vive, 50 percent said Oculus Rift, and 26 percent said Gear VR. This suggests dev interest in Gear VR is cooling, even as Rift is seemingly becoming a more attractive platform.Platform Exclusives are Becoming a Bit More CommonHow many VR/AR industry professionals are making something that will be exclusive to a single platform? About a third, according to our results roughly 31 percent of survey respondents said their next project would be released exclusively on a single VR/AR/MR platform. However, thats up 10 percent from last year, when we asked the same question and got a “Yes” from just 21 percent of respondents. This suggests rising interest in developing an experience for one platform first, perhaps because thats where they see the