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New Consumer Research from Zero Latency: Insights for 2024

Introduction

Zero Latency is a leader in the VR entertainment industry, setting the standard for immersive first person shooting VR experiences. Using advanced technology, they deliver incredibly realistic adventures that captivate audiences worldwide. From fighting zombies to exploring fantastical worlds, Zero Latency’s experiences redefine what it means to be truly immersed.

Understanding consumer insights is crucial. Entertainment trends are driven by shifting preferences and behaviors. Businesses must adapt or risk falling behind. The Immersive Audience Report from the University of Birmingham serves as a key resource for decoding these shifts. This report reveals critical findings that illuminate the future of immersive entertainment.

Consumer research isn’t just data; it’s a roadmap for innovation. Zero Latency recently underwrote its own research to explore what consumers are looking for in immersive location-based entertainment. They worked with research agency Glow, who sampled 16-50 year olds across Canada, USA, France, Germany, Ireland, UK, India, Japan and Spain.

Join Bob Cooney for a very special VIP event at IAAPA Orlando in November where we will discuss this groundbreaking consumer research, and the economics of premium free roam VR. Sign up at Bob Cooney’s VIP Page to be the first notified of this and other special events around the world.

The Experience-Led Economy: A Shift Towards Interactivity

The experience-led economy is shaking up the entertainment industry. It’s no longer just about watching; people crave to be part of the action. This shift transforms passive consumption into active participation, creating a demand for interactivity and engagement.

Why is this happening?

Consumer preferences are evolving. People want more than just viewing—they desire an immersive experience. Successful examples include VR venues like Zero Latency, where participants dive into virtual worlds, actively engaging with their surroundings and each other.

Key Factors Driving the Shift

According to the Immersive Audience Report people strongly prefer experiences they can have with friends.

They also want “Something different from watching a screen,” and “Interactivity and not just sitting down and watching,” reinforcing their desire for immersion and agency.

According to Zero Latency’s research, 60% of those who visit social competitive location-based entertainment venues prefer those with multiple attractions. To help location-based entertainment operators take advantage of this, they recently announced a series of modular solutions for FECs, so operators can now add a Zero Latency arena to their existing operations.

Key Findings from Zero Latency’s Virtual Reality Research Study

Zero Latency’s latest research study unveils significant insights that location-based entertainment operators should consider. Key findings reveal:

1. People Love Virtual Reality

81% of consumers consider virtual reality to be an extremely or very appealing entertainment concept. More appealing than traditional LBE attractions like bowling, axe throwing and even karting.

In fact, VR ranks with theme parks and movies as the most appealing entertainment concepts.

2. Excitement and Immersion

66% of consumers cite excitement and adrenaline rush, as well as feeling “in the game” as the top expectations of a virtual reality experience. This is likely why free roam zombie shooters are so attractive, offering both deep immersion and in-your-face thrills. Zero Latency’s upcoming launch of Warhammer, should offer another opportunity for fans to experience thrilling immersion.

Interestingly, “sense of achievement” ranks lowest, with only 33% of consumers citing that as an expectation. This could be why esports has been slow to catch on.

3. Graphics and Technology Matter

Impressive graphics and visuals topped the expectations list of consumers when it comes to VR entertainment. Following closely were:

  1. Great games
  2. Impressive technology and venues
  3. Physical movement and activity
  4. Multiplayer experiences

And when asked what would make them purchase a ticket for a VR entertainment experience, the number one answer was “trying some cool new technology.”

For years I’ve been saying that graphics don’t matter, but as the technology improves the expectations of consumers are shifting.

Demographic Shifts: Catering to Diverse Audiences in VR Experiences

Changing demographics are reshaping the landscape of VR entertainment. Younger audiences, especially Gen Z and Millennials, are driving this transformation. Their appetite for novel forms of entertainment surpasses traditional cultural experiences like theater or art exhibitions.

Younger Demographic groups crave dynamic, immersive experiences that engage multiple senses. Immersive venues, from Meow Wolf to The Queen’s Ball: Bridgerton are standing out as the most popular location-based entertainment venues in the US. They prioritize interactivity and realism, making VR a perfect fit when you don’t have tens of millions of dollars to build a physical set.

Opportunities for Family Entertainment Centers (FECs)

Family entertainment centers (FECs) have a unique opportunity to capitalize on these trends. By integrating innovative VR solutions such as Zero Latency’s latest offerings, FECs can attract a broader and more diverse audience. Free-roam VR attractions enable visitors to play together in virtual environment, seeing each other’s avatars, enhancing social engagement.

Trailing only value for money, “something to do with friends” is the top reason people want to do immersive experiences. And half the respondants cited “I can attend with family or children” as a deciding factor when choosing immersive entertainment. Multiplayer free roam VR isn’t only social during the experience, it gives guests something to talk about with their friends for days afterward.

The Premium Pricing Dilemma: Balancing Quality and Affordability in Immersive Entertainment

Premium pricing models are often associated with high-quality immersive experiences. Research highlights a clear consumer willingness to pay more for engaging VR content. Customers who have already experienced an immersive VR experience report their open to paying as much as $100 for a quality VR experience.

Data shows that sensory engagement and realism significantly influence this willingness. High-end VR experiences like free-roam environments set a benchmark in the industry, attracting audiences ready to invest in unparalleled immersion.

Pricing strategies in the VR sector, however, carry risks. Over-reliance on premium pricing models can alienate potential customers who seek affordability. Businesses must tread carefully. Price too high, and they risk limiting their audience; price too low, and they compromise on quality.

To strike a balance, operators offer various levels of experience at different price points. Basic experiences can cater to budget-conscious consumers, while premium options attract those seeking top-tier immersion. Many Zero Latency operators also offer smaller arenas with entry level VR games from companies like Hero Zone and VR Cave.

By marrying exceptional quality with strategic pricing, businesses can broaden their reach without sacrificing the immersive qualities that define modern VR entertainment.

Comparing Traditional Entertainment Options with Modern VR Attractions

Traditional entertainment venues like cinemas and theme parks have long been staples for leisure activities. Cinemas offer a passive viewing experience, where engagement is limited to watching the story unfold on screen. Theme parks provide more interactive experiences through rides and attractions but often come with high costs, long wait times, and seasonal restrictions.

Competitive Socializing Venues

Competitive socializing venues have emerged as a hybrid model combining social interaction with immersive experiences. Think of spaces where friends gather not just to watch a movie or ride a rollercoaster but to actively compete in activities ranging from ping pong to mini-golf.

These venues leverage:

  • Social engagement: Friends and family can participate together, fostering stronger connections.
  • Food and beverage: Since the experiences tend to be simple, they don’t warrant high price points. Operators need to supplement revenue with complicated drink and food offerings.

High end VR attractions are shifting the paradigm. While the technology makes them seem complex, compared to running a kitchen and bar, virtual reality is quite simple and inexpensive to operate.

Exploring Successful Case Studies: Free-Roam VR Solutions for Enhanced Visitor Experiences at Family Entertainment Centers (FECs)

Types of VR Attractions for FECs

Family entertainment centers (FECs) are evolving with the integration of cutting-edge VR attractions. Among these, free-roam VR stands out. Unlike stationary VR setups, free-roam solutions allow participants to move freely within a virtual environment. They interact not only with the digital world but also with each other. This adds layers of realism and engagement that static experiences can’t match.

Leading Free-Roam VR Solutions:

  • Hero Zone Compact Free-Roam
  • SPREE Arena Free-Roam for Kids
  • vrCAVE VR Escape Rooms
  • Zero Latency Warehouse-Scale Free-Roam

The Test of Time

Zero Latency’s free-roam VR has been a successful for many FECs worldwide. In Melbourne, Australia, Zero Latency first warehouse-scale free-roam system opened in 2015, and is still going strong 9 years later.

Many other Zero Latency locations are seeing revenue continue to increase in their 3rd and 4th year of operations. This is a testament to the increasing quality of the content coming from Zero Latency’s studios.

Technology Advancements

Advancements in technology are continuously reshaping consumer preferences within immersive entertainment. Enhanced hardware capabilities like higher resolution displays and reliable motion tracking have raised audience expectations. For instance, the leap from 2K to 5K resolution in VR headsets provides unparalleled visual fidelity, making experiences more lifelike.

Inside out tracking enables free roam VR over huge spaces, virtually eliminating motion sickness. Spatial audio makes environments more realistic, and adds strategic gameplay elements. When a zombie is coming up behind you, you can hear it!

Zero Latency is on the 3rd generation of their tech stack after almost 10 years. Each generation has enabled higher quality experiences keeping their operators at the forefront of what’s possible, and ahead of any local competition that comes in with inferior experiences.

Future Opportunities for Family Entertainment Centers (FECs) Based on Insights from Zero Latency’s Research Findings

Family Entertainment Centers (FECs) are about to undergo a major change. The demand for immersive entertainment is going to force them to replace decades old attractions like laser tag, bowling, and miniature golf. Zero Latency’s research reveals important strategies to innovate and expand their offerings.

1. Attraction Diversification

New activities are crucial. Younger audiences crave fresh, interactive experiences. Integrating VR attractions like free-roam solutions and multiplayer VR games can meet this demand. These immersive experiences offer something traditional entertainment can’t—full sensory engagement and interactivity.

2. Appeal to Younger Audiences

Younger generations have different expectations. They seek active participation rather than passive consumption. Introducing attractions that allow them to be part of the story can draw them in. For instance:

  • Interactive VR escape rooms
  • Mixed reality arenas
  • Competitive VR esports

These options provide dynamic, engaging experiences that resonate with younger visitors.

3. Leveraging Technology

Incorporate cutting-edge technology to stay ahead. Advanced hardware capabilities and innovative software solutions enhance realism and sensory engagement, making the experience memorable.

Adopting these strategies will not only attract a younger crowd but also diversify the appeal of FECs. This ensures that they remain relevant and competitive in an evolving entertainment landscape.

Conclusion: Embracing Change is Key To Thriving In The Evolving Landscape Of Immersive Entertainment

Adapt to thrive. Zero Latency insights show that staying attuned to evolving consumer demands is crucial. Rapid technological advancements and shifting cultural norms reshape the landscape. Businesses must innovate to meet these changes head-on.

  • Key Takeaway: Shaping strategies around consumer preferences ensures long-term sustainability.
  • Insight: Younger audiences crave novel experiences.
  • Action: Integrate diverse, interactive offerings to captivate new demographics.

In the future of immersive entertainment, those who embrace change will lead the way.

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