In 2017, more than half of VR’s $2.3B of consumer revenue came from new games such as SUPERHOT VR and virtual editions of established franchises like Fallout 4 VR. Even then, most companies developing entertainment experiences -- especially those outside the games space -- are finding it difficult to make a return on their investment. And with AR/MR funding growing to twice that of VR this year, investors and audiences alike are seeing opportunities in new interactive spaces. Meanwhile, the boom in enterprise application development has shown huge opportunities for companies to find effective and safe solutions that help their workforce be more efficient. This means developers now have the ability to gauge potential profitability using VR and MR, but is enterprise right for everyone? Stephanie will tackle this and other big questions, including: What are the key revenue factors to consider when comparing entertainment to business applications? Will AR and MR see the same hype pattern as VR, or will companies see 2018 as the start of a new era where they can both make money and grow the market? Stephanie will use evidence-based findings to break down the five most important things stakeholders need to consider and help equip entrants with comprehensive and actionable insights.

1. Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
IT’S NOT A SPRINT, IT’S A MARATHON:
GETTING REALISTIC ABOUT THE XR
MARKET
VRLA MAY 2018
@stephinaners | @VRLosAngeles | #VRLA2018

2. About Us
2
Stephanie Llamas
VP of Strategy
Head of XR
stephanie@superdataresearch.com
@stephinaners
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved. @stephinaners | @VRLosAngeles | #VRLA2018

3. About Us
3
We collect data from partners like payment providers, content creators, investors and headset
makers to provide market intelligence on the games and immersive media markets.
• 271M game transactions
• 105M unique gamers
• 337K XR user sessions
• 62K XR devices
• 10K XR survey respondents (U.S. and China)
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved. @stephinaners | @VRLosAngeles | #VRLA2018

4. About Us
4
We collect data from partners like payment providers, content creators, investors and headset
makers to provide market intelligence on the games and immersive media markets.
• 271M game transactions
• 105M unique gamers
• 337K XR user sessions
• 62K XR devices
• 10K XR survey respondents (U.S. and China)
Interested in joining our network?
Get in touch!
stephanie@superdataresearch.com
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved. @stephinaners | @VRLosAngeles | #VRLA2018

5. Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
5
Where’s the beef:
The infamous trough

6. Total earnings will rise
56% from 2017 to 2018.
6
Virtual Reality consumer revenue by segment: 2017-2021
Billions of USD, worldwide
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved. @stephinaners | @VRLosAngeles | #VRLA2018
The Virtual Market’s Slow Start
2017 2018 2019 2020 2021
$2.5B
$3.9B
Consumer software/services
Hardware
$8.7B
$13.4B
$17.7B

7. Total earnings will rise
56% from 2017 to 2018.
VR software revenue will
equal less than half of
hardware over the next 4
years.
7
Virtual Reality consumer revenue by segment: 2017-2021
Billions of USD, worldwide
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved. @stephinaners | @VRLosAngeles | #VRLA2018
The Virtual Market’s Slow Start
2017 2018 2019 2020 2021
$2.5B
$3.9B
Consumer software/services
Hardware
$8.7B
$13.4B
$17.7B

8. 8
Virtual Reality consumer revenue by segment: 2017-2021
Billions of USD, worldwide
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved. @stephinaners | @VRLosAngeles | #VRLA2018
2017 2018 2019 2020 2021
$2.5B
$3.9B
Consumer software/services
Hardware
$8.7B
$13.4B
$17.7B
The Virtual Market’s Slow Start
2019 = major turning point:
revenue will more than
double year over year.
Inflection point

9. 9
Virtual Reality consumer revenue by segment: 2017-2021
Billions of USD, worldwide
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved. @stephinaners | @VRLosAngeles | #VRLA2018
The Virtual Market’s Slow Start
2019 = major turning point:
revenue will more than
double year over year.
Why?
-Cost of devices
-Content diversity
-Location-based VR
2017 2018 2019 2020 2021
$2.5B
$3.9B
Consumer software/services
Hardware
$8.7B
$13.4B
$17.7B
Inflection point

10. Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
10
Consumers are statistics.
Customers are people.
-Stanley Marcus

11. 0%
7%
13%
20%
2015 2016 2017 2018 2019 2020
0%
25%
50%
75%
100%
1960 1970 1980 1990 2000 2010 2020
*Includes Google Cardboard-based devices.
Sources: Michael Felton, The New York Times; Pew Research
Center; Gallup; U.S. Census; SuperData Research
Color TV
VCR
PC
Cell
phone
Internet
Virtual Reality
Technology adoption rates
Share of U.S. households, 1960-2020
VR Adoption
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved. @stephinaners | @VRLosAngeles | #VRLA2018
11

12. @stephinaners | @VRLosAngeles | #VRLA2018Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
12

13. 13
VR/AR/MR headset shipments by type
2012-2020
The VR Market
@stephinaners | @VRLosAngeles | #VRLA2018
1Investment figures include the following investment types: Crowdfunding, seed, angel, Series A/B/C venture rounds or later,
acquisitions (excluding Facebook’s purchase of Oculus) and IPO.
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
M
9M
18M
26M
35M
2016 2017 2018 2019 2020
PC
Premium mobile
Console
Standalones
Oculus Go
HTC VIVE Focus
Lenovo Mirage
Oculus Santa Cruz
???
Magic Leap
Microsoft Hololens

14. 14
Figures include active and potential VR users in the United States who are at least 18 years old.
The American Virtual Reality User
The Immersed
Console Player
Male Millennials age 18-24
•Only demographic to use
PSVR (52%) over any other
headset
•Three in four use VR to play
games
•Most interested in content
that features their favorite
athletes (34% are interested)
The Starstruck
Explorer
Female Millennials age 18-24
•Most compelled by content
where they can explore
landmarks and locations
(37%)
•Want to see their favorite
celebrities (24%), artists
(24%) and fashion designers
(23%) in VR
The High-Earning
Virtual Tourist
Males 35 years old and over
•Earns almost 40% more
annual income than all other
user types ($81K)
•Most likely among all
demographics to try tourism
and travel experiences (25%)
The Engaged Mobile
Crusader
Females 35 years old and
over
•Most likely to try a device
for the first time inside their
own home (48%), often
trying their children’s
headsets
•More than half have used a
mobile device but less than
a quarter have used a PC
headset
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.

15. Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
15
-Sean “P. Diddy” Combs
It’s all about the
Benjamins, baby.

16. 16
Investment in VR/AR/MR companies
2012-2021
The VR Market
@stephinaners | @VRLosAngeles | #VRLA2018
$0B
$1B
$2B
$3B
$4B
2012 2013 2014 2015 2016 2017 2018 2019 2020
AR/MR
VR
1Investment figures include the following investment types: Crowdfunding, seed, angel, Series A/B/C venture rounds or later,
acquisitions (excluding Facebook’s purchase of Oculus) and IPO.
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.

17. 17
@stephinaners | @VRLosAngeles | #VRLA2018
1Investment figures include the following investment types: Crowdfunding, seed, angel, Series A/B/C venture rounds or later,
acquisitions (excluding Facebook’s purchase of Oculus) and IPO.
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.

18. Games
55%
LBE
25%
Interactive
media
7%
Other
13%
18
Consumer software revenue: 2017-2021
Billions of USD, worldwide
The Virtual Market
2017
$554M Games
53%
LBE
17%
Social media
7%
Interactive
media
8%
Other
15%
2021
$5.6B
@stephinaners | @VRLosAngeles | #VRLA2018Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
Doesn’t not include ad revenue.

19. Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
19
Don’t find customers for
your products, find
products for your
customers. -Seth Godin

20. 20
Enterprise VR
@stephinaners | @VRLosAngeles | #VRLA2018
Investment in creators
Internal R&D
Investment in VR/AR/MR companies
Outside investment vs. R&D, $bil
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
$8.4
$11.4
$13.6
$16.3
$17.6
$0.77 $0.80 $0.89 $0.93 $1.1
2017 2018 2019 2020 2021

21. 21
How do enterprise end users use or plan to use VR?
Enterprise VR
@stephinaners | @VRLosAngeles | #VRLA2018
63%
41%
37% 37%
34%
27%
15%
Training
& simulation
Product
design
& engineering
Collaborative
working
Analysis
(e.g., data
visualization)
Marketing
& sales
Research Other
VR Intelligence survey: In which of these areas do you use, or plan to use, VR in your business?
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.

22. 32%
42%
81%
70%
12%
8%
34% 31%
24%
16% 16%
11%
Showrooms
and retail
Architecture,
Engineering,
Construction and
Design (AECD)
Education Healthcare Manufacturing
and
Industrial
Engineering
Other
22
Enterprise VR
@stephinaners | @VRLosAngeles | #VRLA2018
Supply
Demand
Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
Share of VR companies by sector
Supply vs. Demand

23. Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
23
Which letter
comes
before R?
V
A
M
(IRTUAL)
(UGMENTED)
(IXED)
………..……..
………..……..
………..…..

24. 2017 2018 2019 2020 2021
$2.5B
$3.9B
$8.7B
$13.4B
$17.7B
24
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
$1.1B
$2.2B
$6.5B
$10.6B
$17.4B
$0.1B $0.4B
$3.0B
$7.6B
$14.9B
Virtual Reality vs. Mobile Augmented Reality vs. AR/MR Headsets
Immersive technology consumer revenue by platform: 2017-2021
Billions of USD, worldwide
The Immersive Market
Opportunities in XR, VRX USA December © 2017 SuperData Research Holdings, Inc. All rights reserved. @stephinaners | @VRLosAngeles | #VRLA2018

25. Getting Realistic About XR, VRLA May 2018 | © 2018 SuperData Research Holdings, Inc. All rights reserved.
From a small seed a
mighty trunk may grow.
25
-Aeschylus
Stephanie@superdataresearch.com
@stephinaners | @VRLosAngeles | #VRLA2018