James Cameron Thinks Virtual Reality has a Bright Future

What Happened?

Legendary filmmaker and award-winning director James Cameron is joining forces with Meta Inc. (META).

The plan is to design a new suite of virtual reality (VR) entertainment experiences for VR headset owners.

Cameron described the new venture as “A comprehensive, multi-year partnership with Meta to revolutionize all visual media.” Mr. Cameron’s announcement came after he met with Meta’s Chief Technology Officer Brian Bosworth, who also leads Meta’s Reality Labs Division. That division is responsible for the popular VR Quest headsets. 

Remarking on the future of VR Mr. Cameron went on to say “I was amazed by its transformational potential and power, and what it means for content creators globally. I’m convinced we’re at a true, historic inflection point. Navigating that future with Meta will ensure all of us have the tools to create, experience and enjoy new and mind-blowing forms of media.”

We’ve heard similar things before. So what makes this different…?

Why it Matters

Mr. Cameron’s partnership with Meta means a Hollywood heavyweight has now teamed up with a major VR producing company to create content specifically for VR headsets.

According to Statista, over 51 million VR headsets have been sold worldwide since 2019, with over 14 million being sold in 2021 alone. By the end of calendar year 2024, over 100 million VR headsets will be in use across the globe.

Because VR headset owners tend to have plenty of disposable income to spend on VR, the market not only for the headsets themselves but for content which can be viewed on those headsets has been growing fast.

The average VR headset user spends more on content than on the headsets themselves, meaning VR content is already a multi-billion-dollar annual market. The addition of Hollywood-level visual experiences available on VR devices could expand the VR content market even more. 

To date VR has been a risky venture for both device and content manufacturers. For example, in the third quarter of 2024, Meta posted sales of $270 million but an operating loss of $4.43 billion in VR operations.

A new partnership with Hollywood indicates VR heavyweight Meta still thinks VR content has a future worth the investment.

How it Affects You

The price of VR headsets has decreased significantly since 2019. The pandemic of 2020 fueled a rise in the popularity of VR because many people who were stuck in their homes or apartments wanted a new way to connect with the world and VR provided them with a novel option.  

VR headsets have become more user friendly and functional as well, with the new products offering vast improvements in comfort of wear, hand-tracking, content quality, and content selection.

Early buyers of VR headsets faced limited choices for content but now the libraries of available VR content include large selections of high-quality games, entertainment, education, and training.

And now users will get access to Hollywood-grade visual content. The VR industry has had plenty of false starts over the years.

But now, at last, with better graphics and processing speeds, better hardware technology, and Hollywood-grade content, this looks like the best chance for VR to make a real breakthrough.

If it does, it won’t just be Meta that benefits.