Similar to how social was the killer app of prior computing platforms, we believe social is the killer app of ARVR.
If you’ve played in Social VR, you’ve probably noticed one thing — it’s a kid’s world. These kids do nearly anything but play the actual game - they socialize, conspire, create, make, explore. It’s almost as if the game is a scaffold for other games, like a playground.
At a16z, we’ve backed this youth-driven VR playground for two years. We call it “VR Recess”, and we’re looking for more opportunities in Speedrun. Here’s why:
1. Social VR is now the primary use-case of VR
June 2019 — 1/16 top games were F2P Social VR
September 2023 — 3 of the top 4 VR apps, 7 of the top 13 are F2P Social.
2. Teens have the strongest VR retention
From Oculus insights to our own investments - Teens have about 2x the long term retention rate compared to adults.
3. Social apps have the highest proportion of teenage users
Kids are more willing to interact with and make new friends online
Kids have less discretionary income than adults. Free is a big deal when you’re living off an allowance.
4. Teens are a growing percent of the VR user base
Teens likely have higher retention. As adults churn, teens stay active.
Teens likely have higher referral rates.
Quest + Quest 2 lowered the all-in cost + effective weight. Better for cash-strapped kids with weaker necks.
Kids have more plastic brains and thus get less motion sick than adults whose visual cortex expects natural 3d imagery.
5. There is a vast *undersupply* of content going after this audience.
There are only ~10 f2p social games on the Quest store. All of them are in the top 30 most played.
6. Of the few who build social VR, few truly understand their audience.
Of those 10, only Gorilla Tag truly *gets* its audience. It embraces its younger audience with youthful playfulness, low stakes, and a high, visible skill ceiling.
7. Despite lower discretionary income, Teens still have the highest CLV
Teens are low on cash but high on retention. This leads to lower short term ARPUs but higher longer term CLVs.
8. Games played in formative years tend to be games played forever
Music paralysis is when people stop seeking out new music once they’re 30 years old. The same likely applies to games.
Old School Runescape and WoW Classic are played more than their current counterparts.
Top grossing IPs (Pokemon, Disney Princess, Winney the Pooh) all target younger audiences.
9. The future of synchronous social networks are games
10. Social networks start young and age up. Social VR’s audience is very young.
Facebook started in College
Roblox with Gen Alpha
Snapchat with High Schoolers
etc…
11. Social has been the killer use-case of all prior computing platforms
Email and AIM for computers
Texts and social networks for phones
12. VR is the next computing platform
Humans have been optimizing for 2d information since the invention of written language ~5,000 years ago. Humans have been optimizing for the 3d world since they were arboreal creatures. We’re wired for 3D, and VR finally aligns our digital and lived experience. VR’s sense of immersion, disregard of physical limitations, and ability to defy distance are all added bonuses.
Interested in Social VR?
Social VR or “VR Recess” is the present and future of consumer VR, yet few are building in this space. So if you’re interested in Social VR or building in VR at large, I’d love to chat, and we recommend you apply to a16z’s Games x Tech accelerator, Speedrun.
Sources:
Search interest - google trends
Oculus store rankings - Oculus most popular and old oculus ratings