Not only has digitalization impacted everyday conveniences, it has also changed our culture. For instance, it wasn’t that long ago that video games were exclusively the domain of the male and the mate-less. Now, this sad narrative has been flipped onto its head, with video games becoming integrated into mainstream culture. Further, virtual reality specialists like Virtuix offer the potential to take the sector even higher.
If Virtuix stock ever becomes available through equity crowdfunding channels, you’ll want to seriously consider it.
For starters, virtual reality is a big business within a globally burgeoning market. According to data curated by Statista, VR revenues should top $9.3 billion by the end of 2025 in the U.S. market. In addition, with companies like Facebook (NASDAQ:FB) and Sony (NYSE:SNE) investing millions into developing VR headsets, the entire market benefits thanks to global evangelism and accelerated mainstream integration.
At the same time, VR risks commoditization. Indeed, you can see that U.S.-based VR market revenue forecasts resemble an S-curve. For instance, the projected growth between 2024 and 2025 sales is only 6.2%. That’s a far cry from the 115% growth seen between 2014 and 2015 revenues. Should Virtuix stock be exposed to the direct competition narrative against Facebook and Sony, the underlying company would probably be a private investing failure.
Note that I’m not saying that just because I’m a Sony shareholder. Rather, a company needs something distinct or better yet, unique to beat the ravages of commoditization. Fortunately, Virtuix is an investment in the latter, drawing significant attention from both private investing speculators as well as gamers seeking an unprecedented experience.
According to Virtuix’s website, its VR flagship product Omni “is the first omni-directional treadmill that lets players walk and run in 360 degrees inside video games and other virtual worlds.”
Essentially, the Omni allows people full freedom of movement in their virtual environments. Previously, VR headsets only allow the brain to “think” that it’s in another world. With Omni, you’re actively engaging your entire body as you interact in the digital realm.
Therefore, first-person shooter games are much more intense as you run for cover, while returning fire from a crouched position. Put simply, the engagement is completely intuitive, sparking a radical paradigm shift the likes we have never seen since Nintendo (OTCMKTS:NTDOY) introduced at-home video game entertainment to the world.
Virtuix Is Simply a Gamechanger
Although the above sounds hyperbolic, I honestly believe that I’m being level-headed. With video games, VR headsets and esports dominating the entertainment narrative, Virtuix stock has radically inserted itself into a niche but incredibly viable gaming segment.
If I had to describe it, I’d call it holistic gaming. Better yet, major league private investing figures have jumped on Virtuix stock, most notably Shark Tank personality Mark Cuban. According to the virtuoso entrepreneur, “I believe in the Virtuix team and product. Now is the time to bring the popular Omni gaming experience to the home.”
And that’s exactly what the company is doing with the Omni One. Featuring a lightweight and easy-to-store chassis, the Omni One delivers expansive gaming experiences that will transform even the tiniest apartments into a warzone or fantasy world or whatever it is that you crave.
Best of all, the in-home Omni products are surprisingly cheap. Frankly, I was expecting a product which has resoundingly positive reviews and fosters an unprecedented gaming experience to cost at least five digits. Instead, the Omni One can be had for less than $2,000. Or the Omni One “Dev Kit” – the developer version sans headset – can be purchased for less than a grand.
Further, monthly subscriptions allow users to enjoy a variety of games for a reasonable recurring fee. That should give Virtuix stock a robust mixture of platform and service sales.
Now, the immediate criticism is that the Omni One is priced higher than VR headsets. However, consider the rapid rise of Peloton Interactive (NASDAQ:PTON). Its exercise equipment are pricey as well and they only are geared toward exercise. And that’s a challenge because exercise equipment typically end up being pricey clothe hangers after a while. The reason why gyms are relevant – the novel coronavirus pandemic aside – is because of the camaraderie and competition effect.
Well, the present crisis makes that camaraderie a bit of a problem. More importantly, the Omni challenges and engages you like no other platform. I will argue that there’s no greater incentive for exercise than having terrorists chase you with AK-47s.
To very loosely paraphrase Morpheus from the movie, The Matrix, if you think it’s real, it’s real.
Risk Factors to Consider
Although Virtuix stock would arguably be one of the most exciting private investing opportunities should shares go online again, you must remember that equity crowdfunding isn’t without risks. Indeed, it’s far riskier than buying blue-chip stocks.
With the latter, you have a wealth of information at your disposal. But with private investing, your ability to conduct due diligence is limited. Therefore, you should never spend a dime more than you’d be comfortable losing. Even with the best companies, you’re probably looking at tying up your money in an illiquid market for some time.
Additionally, I think it’s fair to point out that you should buy Virtuix stock because you personally believe in the business. While the Mark Cuban factor is a plus, you don’t want to let that distract you. Remember, if Virtuix collapses, he’ll still be a billionaire. Keep that in mind as you conduct your own research.
Operationally, you should realize that virtual reality isn’t for everyone. Although your mileage may vary, I can only go for about 20 minutes before I start feeling dizzy. I’m not entirely sure how I would feel with an omnidirectional treadmill platform.
Furthermore, you should note potential health risks associated with extensive VR gaming. According to Sciencefocus.com, the hazards go beyond just feeling dizzy. The website mentions concerns about VR platforms accelerating “the global epidemic of myopia.”
Let me be clear – I’m not suggesting that Virtuix causes health issues. Rather, I’m mentioning risk factors that may impact Virtuix stock.
Finally, the company may suffer from Covid-19 if the second wave of cases worsens dramatically. For example, the U.S. has already suffered badly from the lockdowns. Another series of stay-at-home orders can leave even the currently well-to-do in trouble.
Let me remind readers that while national unemployment has trended downward, permanent job losers have accelerated higher. Keep that up and this trend could stifle expensive consumer discretionary companies like Virtuix.
A Groundbreaking Innovation in Gaming
Even with VR headsets, the gaming platform has generally been dominated by flat, two-dimensional experiences. With Virtuix, gamers finally have the immersive experience they’ve been longing for. Therefore, despite some challenges, the profound innovation inherent in the Omni is more than enough to warrant considering for this private investing opportunity.
As I mentioned near the top, Virtuix stock is currently unavailable. However, you can go to the equity crowdfunding site SeedInvest and reserve your spot to invest in this groundbreaking organization.
On the date of publication, Josh Enomoto held a long position in SNE.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks
