Virtual reality: a (very) brief history, part 2

By Justin Ware. Published at Nov 29, 2018, in Ctrl Alt Del

Welcome to part two of this (very) brief series on virtual reality (VR). In case you haven’t checked out part one, you can do so here.

After Virtual Boy’s commercial failure in 1995, VR's immediate fate was sealed: it was a scam. Overhyped. Fake news. It became known as the concept whose time had not yet come.

Enter the Matrix.

While The Lawnmower Man (1992) was the first film to use the term ‘virtual reality’, I would argue that The Matrix (1999) takes heavy responsibility for the VR landscape we see today.

When Neo realises that his very existence is an elaborate simulation (while his real body is in stasis), the Wachowski's film tapped into the dream to create a world beyond the present.

Want to become a pianist? Master multiple forms of MMA? Like pineapple on pizza? Take the red pill.

The Matrix can answer this question.

It was this (now poorly dated) film that captured the imagination of Palmer Luckey, the founder of Oculus VR.

Thanking our Luckey stars

Luckey, a self-confessed fan of the sci-fi genre, had grown increasingly frustrated with the state of head-mounted displays on the market.

In 2012, he addressed his displeasure by doing what any typical 17 year-old would do — he built a multi-million dollar company: Oculus VR.

While Oculus has since arguably been surpassed by several other players in the space (such as Sony, Google and HTC), its pioneer status can't be disputed.

How you doin’?

To give you an idea of just how thirsty consumers were for VR to be a ‘thing’, look no further than Oculus’ Kickstarter campaign.

Luckey had a simple vision: 'give me your money and I’ll do VR justice'.

It didn’t matter that Oculus had no employees, no proof of concept, no prospectus, no office. He was going to make VR great again.

In August 2012, the company launched its US$250k Kickstarter campaign and raised a whopping US$2.5 million in return.

This campaign led to the following models:

  • Development Kit 1 (DK1): Released on 29 March 2013, it used an 18cm screen which featured low pixel switching time. This meant that latency and motion blur were significantly limited when the user moved their head or made sudden movements
  • HD prototype: This fresh prototype was debuted at the Electronic Entertainment Expo. It used a 1080p LCD display, therefore increasing the resolution (it did not ship to public)

In March 2014, Mark Zuckerberg and his data-hungry brethren bought the tech start-up for US$2.3 billion.

All your data belongs to me.

The move was ridiculed by backers of the Kickstarter, who felt that the sale was in direct contradiction of Luckey’s initial crowdfunding shift. While I understand the angle these kinds of views come from, it’s unlikely Oculus would have finalised its go-to-market headset without the supervision of the social network.

After the Facebook merger, Oculus released the following:

  • Development Kit 2 (DK2): Oculus shipped DK2 in July 2014, which featured a higher resolution (960x1080p) OLED display and higher refresh rate. By February 2015, this model shipped over 100,000 units.
  • Crescent Bay prototype: Released in September 2014, this version was lighter than the DK2 while boasting better resolution and 360 degree head tracking.;
  • Consumer Version: The crème da le crème. In March 2016, the first batch of the Oculus Rift consumer version shipped.

But... where’s the actual game?

Thanks to the release of Jurassic World VR earlier this year, I am tantalisingly close to hunting my favourite dinosaurs (but where is Jeff Goldblum?).

All jokes aside: despite the fact that gaming has been the mainstay of VR tech to date, studios and developers have lagged behind.

Depending on what your definition of ‘game’ is, there’s no shortage of VR games on the market.

However, at present, the VR experience is an amazing tech demo and nothing more.

That’s not to say that VR isn’t the best it’s ever been: you can do a commando roll while shooting the bad guys or perform surgery with your hands (hilarity will ensue, believe me), but once your initial buzz wears off, you’re just an adult wearing a ridiculous headset.

Until studios find a way to bring the same rich experience to VR headsets as they do for conventional console players, it will remain a gimmick in the gaming industry.

In part 3 of this series, I will explore the other potential applications for VR tech, moving forward.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!