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The virtual reality industry has made remarkable strides over the past few years, but what does it take for standalone free-roam VR venues to succeed? As a longtime VR industry expert, I’ve seen firsthand both the potential and the challenges of free-roam VR, and it’s time to take a hard look at what works and what doesn’t.
Free-roam VR offers incredible, immersive experiences, but most are designed for short, casual play. I call these “drive-through” VR experiences. They’re designed to be a quick thrill but lack the depth and substance to become a destination attraction. This is a challenge if you want VR to be more than just a brief stop in an entertainment district.
People need a reason to put on their pants and leave the house.
I also keep reading comments from “experts” saying that you must be in a high-traffic mall to succeed. If you build a drive-through VR experience in an expensive mall, you’ll struggle to convert the traffic. You might have more success converting walk-by traffic in one of the new entertainment districts, but the rent will crush you. You won’t generate enough revenue per square foot to survive.
To make the numbers work, the experience must be compelling enough to draw destination visits, which means an hour or more total experience length. You might be able to bundle experiences together to get to that hour of play, which means your prices will be more than you might have expected.
That’s the third challenge. Operators still underprice VR experiences. Sandbox VR seems to be the only company consistently pricing at the $2 per minute mark. Most others are half or a quarter of that. It would help if you optimized your business for revenue per hour and revenue per square foot. Do everything you can to sustain the highest price point possible.
Keys Considerations for Standalone VR Venues
Standalone free-roam VR venues have incredible potential, but we’re not quite at the point where they’re a guaranteed hit for mainstream entertainment. To succeed, it requires a careful balance of compelling content, a viable business model, and a willingness to experiment and adapt. The pioneers who approach this space with patience, dedication, and an eagerness to learn will be the ones who ultimately thrive.
My advice if you’re looking to build a standalone VR venue is to go slow. Research the market. Shop your competition. If you have no retail entertainment experience, attend a trade show. You will be amazed to learn how much you don’t know. Filling in that knowledge gap before you sign a lease and commit yourself to investing will go a long way to helping you succeed.