Extended reality (XR) technology is an umbrella term for immersive technology that enables virtual reality (VR), augmented reality (AR), or mixed reality (MR) experiences. Pioneered by people such as the American filmmaker Morton Leonard Heilig, who patented the first VR machine in the early 1960s, XR is expected to become more and more important in the coming years. Factors such as the increasing sophistication and affordability of dedicated hardware, the perceived potential of new business applications, and a demand for new consumer experiences, which include experiences in the
, contribute to the expectations regarding XR. In 2022, the XR Fair Tokyo, a B-to-B exhibition showcasing technology and services related to VR, AR, and MR, was held for the first time in Japan, showing that XR receives considerable attention from Japanese businesses as well.
The head-mounted display market in Japan
A major type of XR hardware are head-mounted displays (HMDs), which can be used for a variety of purposes. The
domestic shipment volume of HMDs for XR and 360-degree videos, which includes full spec models, HMDs for smartphones, HMDs for gaming consoles, standalone models, and other types of models, such as AR headsets, is expected to expand greatly in the coming years. Since the release of the Oculus Go in 2018, standalone models were at the center of the HMD market. A
breakdown of the shipment volume by type shows that standalone models will continue to be one of the major model types in the next years.
XR and gaming
One significant area of application for XR technology are video games. Both
mobile gaming and
console gaming are popular pastimes in Japan, and survey data show that almost a third of Japanese gamers
want to use VR devices. When asked about the
things they want to experience via VR devices, a majority opted for watching visual content and playing video games. One major product that caters to gaming enthusiasts is the PlayStation VR2, which was released by Sony for the PlayStation 5 in February 2023. Gaming-related immersive technology has also been used at Japanese theme parks, such as Universal Studios Japan, which offered the XR experience “Monster Hunter World: Iceborne XR Walk” for several months in 2022. The attraction was based on a popular role-playing game (RPG) IP and let visitors experience the thrill of hunting monsters in a virtual world via a dedicated PC backpack and a VR headset. Similar to the experience offered by gaming arcades, theme park attractions offer visitors the opportunity to try out highly advanced technology without having to invest large amounts of money in the necessary hardware.
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