Future Technology Trends: Augmented Reality Finding To Be A Good Bet For Many
By now if youâre not living under a rock, youâve become familiar with the revival of the PokĂ©mon craze. Following the launch of PokĂ©mon Go, the popular Nintendo (NTDOY) title from the â90s, the tech industry is abuzz with the virtual (âVRâ) and augmented reality (âARâ) industry.  Minds blown? Well not so fast. Though some are seeing this as a âbrand new thing,â augmented and virtual reality technology has been around for decades but hasnât had mass exposure until this one mobile gaming app took center stage this summer.
Even before the boom in AR was sparked by Pokémon Go, analysts were already foreseeing a strong market for wearables and applications. Based on data from Digi-Capital, there has already been $2billion invested into AR/VR within the last 12 months alone; most of which has been directed toward start-ups.
Although the majority of these companies were built outside of a mobile phone platform, the quality and appeal are showing that a bucketload of money is being earmarked for this pending boom. Â Just take for instance Googleâs investment in Magic Leap to the tune of just under $800 million in a series C round. Â
The interesting part is that Magic Leap does not have a commercialized product but the renderings are pretty breathtaking, which could mean some very positive expansion for the industry as a whole. With big money being thrown around to the tune of 10 figure sums (even without the Magic Leap transaction), larger corporations are looking to bypass the âdevelopment stageâ and simply acquire or merge with some of these lesser-capitalized boutique tech firms.
Take for instance Facebook (NASDAQ: FB). Though the $2B investment was initially in virtual reality via Oculus, the VR company has said that it will also be diving into the AR space as well. Â At the San Jose Comic Con, Palmer Luckey, founder and CEO of Oculus, alluded to the companyâs ultimate inclusion of AR into its portfolio and take the company beyond VR.
But it isnât as simple as differentiating what is VR and what is AR. A new push from companies like Microsoft (NASDAQ: MSFT) has nudged the boundaries of this space by implementing âmixed realityâ (âMRâ). Using its HaloLens, Microsoft has made it possible for VR and AR to converge where virtual objects can actually interact with physical objects as opposed to AR where physical objects interact with virtual objects. Â Though AR is still relatively under-developed compared to VR, proponents like Steve Wozniak identify that AR could end up surpassing the successes that VR has had. âSome of us just like to be early adopters and play with what the future could be,â Wozniak stated when referencing the AR marketplace.
Keep in mind that this was back in March and all those presenting had no idea that the PokĂ©mon Go craze would be as wild as it has been. And it could only be getting bigger, near term.  Recently announced Nintendo NX game platform, could up the ante for VR/AR sooner than we think. With no prominent competition (yet), many of the larger players could be looking at Nintendo to be the guinea pig for the mass marketplace.  Keep in mind that the image quality through the PokĂ©mon Go App isnât much to write home about but the idea behind it is bringing AR to the spotlight.
The big three games that are planned for release are Zelda, Mario, and Pokemon (the classics). Though nothing has been confirmed yet, Zelda/Mario creator Shigeru Miyamoto has commented that, âAs for VR, we are researching not just VR but [augmented reality] and many other technologies⊠In terms of NX, there's an idea that we're working onâŠThat's why we can't share anything at this point, and I don't want to comment on the other companies."
The race is on and it could quickly come to a head for more than just gaming systems & accessories. Large companies are vying for market share and R&D early. Â Intel (NASDAQ: INTC) is planning to unveil its augmented reality smart glass called Remote EyeSight, at the Intel Developer Forum this month. Not much has been confirmed directly by Intel but tech sites like PCWorld speculate on the potential of Remote EyeSight.
âIntelâs Remote EyeSight could enable interactive remote communication on smart glasses, kind of like having Skype on a wearable. That could promote freedom of movement and communication, and blend in real and virtual world scenes into video chats. In the enterprise, it could be used in areas like repair, medicine, and education.â
Intel has also been on the acquisition path and its latest buyout of rendering engine company, Replay Technologies, could put users of Intelâs 3D RealSense in a whole new view of sporting events. Â Though the buyout price has not been disclosed, Intel has told sources âReplay's technology could play a role in capturing real-world content for use in VR and augmented reality worlds.â
Intel already has a platform that can allow consumers to create enhanced VR/AR projects through its RealSense product. And in addition to sensing things like depth and position, it can also depict very impressive attributes like gesture control, 3D scanning, as well as special recognition for applications in things like drones (so they donât run into buildings); probably something Amazon (NASDAQ: AMZN) could use if drone delivery takes off (no pun intended).
Thinking outside the box also has helped begin to mold the market for augmented/virtual reality. Normally technology like this would only be for âearly adoptersâ but New York State residence could be put in the front row whether they like it or not. Â Something that has changed very little has been lottery. Whether itâs buying a ticket or scratching off a card, the interaction is the same; until now.
A California based company, Paymaxs, has adopted AR technology and applied it directly to a very novel and potentially game changing product for the New York State Lottery. Â Their âGold Castleâ game (found at http://www.nylottery3d.com) is fully immersive and involves augmented reality. In an exclusive interview, Liana Kadisha, Paymaxs Chief Product Officer of Paymaxs, told TechStockInsider.com, âGold Castle is the first scratch-off lottery ticket with augmented reality gameplay in the world and right now it is only available in New York. Paymaxs and the New York Lottery have been working together for a year leading up to our July 5th launch. We're in active conversations with other lotteries but as North America's most profitable lottery, we expect New York's innovation to set a fast-growing trend in the $292.7B global lottery market.â
Itâs a clear example of how a novel idea now brings a technology in the infancy/early adopter phase and puts it right in the faces or a relatively âconservativeâ audience. But more importantly, like Mr. Wozniak, Kadisha also believes A/R is just beginning to become relevant, âI believe the next year will continue the recent trend of taking augmented reality to the general public and revamping familiar experiences with new and interesting augmented reality layers. Recent events have quickened the education of users and have brought a sense of urgency to funding and product development cycles for further innovation.â
Outside of these companies making headway, this isnât to say many other household names arenât looking for ways to apply this ânew technologyâ. From Car companies like Ferrari (NYSE: RACE), Ford (NYSE: F), and General Motors (NYSE: GM), to entertainment & media giants like Disney (NYSE: DIS), Comcast (NASDAQ: CMCSA), and even airlines like Emirates are taking a stab at the new reality of AR.
âOver the next few years, as people get more comfortable with using augmented reality, we will see more sophisticated interfaces and exciting uses of the technology. It is clear that users are ready for augmented and virtual reality and that it will be a significant part of our future,â said Kadisha.
Though these are still the early stages for AR and VR, incubators and large corporations are still looking to raise significant funding while also continuing to dive into the world of M&A. This is a new advent of a technology that up until now has not really been in the public eye. Now that Pokémon Go has opened many eyes, this could be a sector to be paying much closer attention to heading into the end of 2016 and into years ahead.











