The impact of VR and AR technologies on the game development industry

The advent of technology geared towards user experience has resulted in rapid and constant changes in all aspects of our lives. The gaming world, which was once deemed immune to transformation, has undergone a revolution thanks to the remarkable advancements of AR and VR. The gaming industry has experienced significant growth in recent times, and it is widely believed that the widespread availability of smartphones and cutting-edge technology has brought about a complete overhaul of the gaming experience on a global scale.

What is augmented reality? (AR)

The impact of VR and AR technologies on the game development industry

With the advent of virtual technology, augmented reality (AR) was born, providing users with a unique and immersive experience that leaves them feeling satisfied after interacting with digital environments. AR combines game visuals and audio content with real-time user surroundings, creating an artificial environment. In the gaming industry, AR app development is employed to create a playing zone within the existing artificial environment, and this technology is known to captivate users when played on smartphones, tablets, or gaming systems.

In the gaming industry, augmented reality has made a tremendous impact by introducing interactive experiences that augment every object in the real world. This technology has had a significant impact on various fields, including healthcare, e-commerce, marketing, automotive, education, defense, and retail.

What is Virtual Reality? (VR)

The impact of VR and AR technologies on the game development industry

Virtual reality (VR) is a cutting-edge technology that enables the creation of simulated environments. Similar to a user interface, VR provides users with an immersive experience in the artificial world. Unlike traditional viewing screens, users can interact and engage with 3D worlds through their senses of vision, hearing, touch, and smell. While computer technology acts as the gatekeeper of the artificial world, VR experiences are limited by factors such as the availability of content and the computing power required to create them at an affordable price point. The major component of virtual reality is the head-mounted display (HMD).

Virtual reality has revolutionized the gaming industry by offering an enhanced user experience. VR has become a hot topic in the gaming industry and has captured the attention of a growing market. It offers numerous benefits, including the ability to provide appealing virtual objects and to immerse users in real-time gameplay. These advantages have enriched the gaming environment by bringing the digital world to life, leading to increased user engagement and retention.

Advantages of VR games

The impact of VR and AR technologies on the game development industry

Compared to classic video games, VR games offer a superior level of immersion. By providing a 360° view of the surroundings, they create a lifelike experience that flat displays cannot match. In addition, wearing VR goggles can help users to become less distracted by their physical environment. When you combine this with realistic interaction mechanics and constantly improving graphics, the result is a truly immersive experience.

In addition to headsets becoming more powerful and affordable, new equipment is emerging in the market that enhances the gaming experience and boosts immersion. Omnidirectional treadmills and haptic vests are among the devices that fall into this category.

Another advantage of virtual reality games is that they often require players to move around, which can be healthier than sitting down all day and holding a gamepad. Users can have fun while also getting some exercise. In addition, VR games offer a better multiplayer experience, as users feel like their companions are present in the same physical space.

VR games – challenges

While there has been significant improvement in hardware and its functionalities, there are still some areas that have not yet reached truly satisfying levels or are not yet accessible to the average consumer. For instance, multi-purpose haptic gloves that are affordable and widely available are not yet accessible. Additionally, top-tier headsets are not affordable for most individuals. However, it is temporary, and these issues will be resolved in due time.

Developers must take care to design VR games appropriately as they can induce nausea and dizziness in certain players. However, this is only applicable to a relatively small portion of users, and the majority are not affected by these symptoms. Furthermore, these effects are commonly due to high latency or lack of familiarity with VR and can be overcome to some extent.

In the field of VR game development, the number of experienced developers is limited. However, our team of game developers, designers, and 3D artists are experts in creating virtual and augmented reality applications, making us the perfect choice for creating exciting and innovative products. In particular, our team ByOwls has developed a mobile app called “Virtual App” which utilizes ARCore technology.

This mobile app is used in combination with a virtual plugin for the Unreal Engine 4/5 game engine to transmit and receive data between devices, enabling the use of Virtual Camera technology for game and film development.

In addition, among the prospective projects in ByOwls’ portfolio, there is a unique streaming platform called “The Virtual Reality Streaming Platform“. The product will have a similar structure to familiar streaming services in the form of an application with a monthly subscription. This will give users access to a library of games and programs. To start a gaming session, you will only need a phone and a simple headset, typically used for viewing 360 videos (priced at around $10). Essentially, the app turns the phone into a VR headset, tracking the user’s space and hands. The entry point into VR is minimal since any user with a mid-range smartphone and support for ARCore can use the platform.

Also, the ByOwls team has developed a multiplayer VR game Rival Rides, which is a microcosm in the form of an amusement park. The game’s strengths include a unique reward and level-up system that allows players to unlock countless skins for avatars to personalize their gaming experience, improve their gaming persona, and truly immerse themselves in the game world.

The difference between virtual reality and augmented reality

The impact of VR and AR technologies on the game development industry

VR and AR are two distinct yet complementary technologies. Augmented reality creates a simulation of artificial objects in a real environment, while VR generates an artificial world to be experienced. Augmented reality employs 3D graphics to overlay computer-generated images onto the user’s view of the actual world, made possible by sensors and algorithms that determine camera orientation. Conversely, Virtual Reality employs similar senses and algorithms, but instead of using real cameras in the physical world, VR technology utilizes the user’s eyes to navigate the simulated environment. As a result, graphics react accordingly to the user’s movements, creating an immersive and interactive experience.

In what ways do AR /VR introduce groundbreaking transformations to the realm of gaming?

The level of sophistication achieved by VR and AR technology is now capable of truly engaging gamers. Manufacturers have introduced unprecedented innovations that offer users a seamless and captivating experience with the right equipment. The gaming industry is on the cusp of a revolutionary transformation as AR and VR redefine the boundaries of gaming as we know it.

The concept of 3D films is not a new one, but it has struggled to gain popularity among viewers due to its high costs. However, certain productions, such as the film “Avatar,” have successfully harnessed the technology’s potential. The gaming industry is another area where 3D effects have gained traction, providing players with an immersive and captivating experience that serves as the foundation of the game.

As times change, the gaming industry has experienced a surge in demand for immersive experiences that blur the line between reality and the virtual world. This has become a key factor in the success of any game in today’s market. Developers must strive to create an ideal gaming environment that allows players to embody their avatars and fully engage with the game.

AR technology is recognized for its ability to merge the real and virtual worlds, creating a dreamlike experience for users. The capacity to seamlessly integrate digital information with real-time environments has the potential to revolutionize the gaming industry. Real-time interaction will enhance gamers’ perception of the virtual world and lead to the development of more captivating and engaging game levels.

Games are no longer just a form of entertainment; the evolution of AR and VR technology has expanded their reach into daily life. Industries such as medicine, tourism, education, and entertainment are turning to AR and VR interactions to enhance their customers’ experiences and attract more visitors. This approach is increasingly popular and gaining consumer attention at a rapid pace.

AR and VR are not only leading the race in providing an exceptional user experience but also in delivering diverse and captivating content created by skilled game developers. To cater to the specific needs of their target audience, developers are offering highly customized content of superior quality.


The gaming sector has experienced a revolution thanks to the advent of AR and VR technologies. It is estimated that by 2025, industries employing these technologies will reach a valuation of over billion. The popularity of VR game development continues to grow, and this trend is expected to continue.

According to the forecast, the shipment of AR/VR headsets is expected to increase by 14% in 2023 and continue to accelerate from 2023 to 2027, with a five-year compound annual growth rate (CAGR) of 32.6%.

In particular, the VR market is expected to grow by 50% in 2023, reaching a total value of $7 billion, with the majority of this growth coming from sales of VR headsets. Around 14 million virtual reality headsets are expected to be sold in 2023, with an average price of $450, resulting in a 50% rise in the number of VR headsets being actively used.

Anticipated this year is the unveiling of a virtual reality headset by Apple, while Sony has already released its renowned PSVR 2 headset, catering to console-loving gamers.

Additionally, companies such as Apple, Google, and Snap are competing to create something even more impressive: augmented reality glasses. Meta, on the other hand, is betting that its early involvement in mixed reality will result in significant benefits. In 2025, Meta plans to release its first smart glasses with a display, accompanied by a neural interface smartwatch for controlling them.

Virtual global production tools, which are projected to be worth $1.8 billion in 2022, are expected to increase by 20% and reach $2.2 billion in 2023.

It is important to note that the digital world is gradually entering the metaverse, which is expected to further boost the growth of virtual reality. As a fundamental technology of this digital transformation, virtual reality is poised to play an essential role in shaping the future of this new virtual world.