VR and AR are entering a new stage.

VR and AR Enter a New Stage

2016 was supposed to be the year of VR (Virtual Reality), but in reality, the most popular content was AR (Augmented Reality).

VR and AR will remain highly significant in 2017. However, their importance is likely to evolve.

The Oculus Rift, HTC's Vive, and Sony's PlayStation VR all emerged in 2016, bringing with them numerous games, "experiences," and 360-degree videos.

At Cannes Lions, VR campaigns won awards for the first time. One was The New York Times' "The Displaced," which used VR technology to let viewers experience the lives of refugee children displaced by conflict. The paper provided an app to view the content and simultaneously distributed one million Google Cardboard units (a simple VR head-mounted display) to readers. The paper also launched "The Daily 360," a service delivering VR content daily, including a 360-degree video offering a realistic sense of combat in Fallujah, Iraq.

During the Rio Olympics, broadcast rights holders delivered VR 360-degree content accessible via apps.

Media companies like YouTube and Facebook have begun offering 360-degree video ad formats.

Meanwhile, AR gained prominence through Pokémon GO. The app recorded 500 million downloads within two months of its launch and continues to generate substantial revenue.

AR popularity is rising in luxury goods and fashion apps. You can even try on new clothes or makeup using AR. However, the user experience must be seamless to be effective. Without excellent visuals, it won't spark the desire to buy.

AR is also ideal for giving instructions or conducting training. Caterpillar, which provides construction machinery like bulldozers, is developing AR apps and devices to teach vehicle maintenance procedures.