The Troubled 'VR', Telecom 3 Giants Focused on Metaverse

Aggressively Launched 'VR Service
Content Shortage Leads to Neglect
Devices Frequently Malfunction, Consumers Frustrated
Reduced to 5G Subscriber Gifts

VR Still a 5G Killer Content
Premature for Mass Adoption
Telecom Companies Invest in Metaverse Market

[Asia Economy Reporter Lim Hye-seon] LG Uplus positioned immersive media ‘Virtual Reality (VR)’ as the spearhead of its 5th generation mobile communication (5G) service. Although it started off grandly, after three years, the ‘VR service’ has fallen into neglect. The ambitiously launched VR devices have become mere ‘free gifts’ for 5G subscribers, and recently, after an Android phone update, they have become unusable, turning into burdensome items.

VR Devices Malfunctioning

According to the telecommunications industry on the 8th, LG Uplus’s VR device ‘Pico Real Plus’ has experienced malfunctions after the Android 12 update, but no app updates or corrective measures have been taken for nearly a month. The latest VR content cannot be used on this device at all, increasing user dissatisfaction. Consumers have even expressed complaints such as, "It was once called 5G killer content, but now it seems abandoned."

LG Uplus enthusiastically introduced VR content at the early stage of 5G service, but due to a lack of content attracting consumer interest, it has been offering VR devices for free to users of expensive 5G plans costing over 95,000 won as promotional gifts.

There are also criticisms that the quality of content viewed through VR devices has actually declined. LG Uplus upgraded its XR content platform ‘Uplus Dive’ last November, promoting that it offers about 3,000 pieces of augmented reality (AR) and VR content. However, consumer responses have been cold, with evaluations that the utilization of VR devices has decreased. The company emphasized that it combined immersive content previously provided separately through Uplus VR (U+VR) and Uplus AR (U+AR) and strengthened spatial elements, but users pointed out that the sense of depth in videos is less than before and it feels like watching an enlarged large screen.

KT and SK Telecom are in similar situations. KT’s ‘Super VR’ enjoyed brief initial popularity but currently shows sluggish sales. SK Telecom, selling Facebook’s Oculus, has gained popularity among some enthusiasts but remains far from mainstream adoption.

VR Was the Trend, Now It’s Metaverse

The telecommunications industry’s lukewarm attitude toward VR business is because, after COVID-19, the future demand for non-face-to-face virtual worlds surged, and all related investments have been redirected to the metaverse. Global market research firm Strategy Analytics (SA) forecasts that the global metaverse market size will reach $280 billion (approximately 326 trillion won) by 2025.

SK Telecom built a ‘platform’-centered metaverse around IFland, launched in July last year. IFland focuses on gatherings and communication. SK Telecom plans to develop an avatar ‘AI agent’ that actively learns and communicates in the virtual world without user control and to establish an independent economic system based on virtual assets. KT, which has not yet announced a metaverse-related strategy, plans to build the ‘Omniverse Metavalley (tentative name)’ platform starting in the first half of this year. LG Uplus is also reducing VR-related investments and increasing investments in the metaverse.

An industry insider said, "There is no doubt that VR is 5G killer content, but with current technology, it is difficult to present content that satisfies consumers," adding, "This is why investments are increasing in the metaverse market, which can be realized immediately." He continued, "Apple plans to release a high-performance mixed reality (MR) headset next year that enables interaction between reality and virtual worlds, and if technological innovation is achieved, the atmosphere will change."