FEATURE
Virtual Reality
Entertainment in Shopping Malls.
Will it Work? In the GCC region, shopping malls are the main drivers of the retail industry. These establishments provide the opportunity for retailers to showcase their brands. Having said that, competition among retailers is fiercer than ever, resulting in higher demand for shopping malls to generate more footfall. While in the past, malls initially served only as a convenient retail hub for residents, changes have begun to appear. The influx of international luxury retailers, the increasing growth of F&B and entertainment offerings, saw malls evolving into weekend and entertainment destinations. Speaking of entertainment, the Retail People Magazine had an insightful conversation with Frederic Fitoussi, Managing Director of Palais Royal Technology that manages the Virtual Center in Dubai, one of the leading Virtual Reality Games providers in France.
Can you give us a brief information about yourself and what you do? I have been living in Dubai for the past 14 years developing retail brands in the region from different industries. I am here with the family. We love this country, it’s lifestyle and all the benefits the nation offers.
What is Virtual Reality (VR)? Virtual Reality (VR) gaming is a multi-sensory, immersive gaming environment where hardware and software come together to offer a virtual world experience via head-mounted displays. Sensors within the headsets track the user’s movements and keep changing the views accordingly. This gives users the impression of being physically present in a surreal environment.
How big is the Virtual Reality in gaming market? In 2020, record shows USD 150 Billion for the global gaming industry while the global virtual reality in gaming market is about USD 16 Billion. VR represents 10% of the global gaming industry market and should reach by 25% in 2025. Over the past 5 years, game editors have received 43% of their total funding to develop VR games. The best example would be Mark Zuckerberg, Owner of Facebook, as he decided to invest big in VR. Currently, he’s utilizing 25% of his task force only in VR to develop tomorrow’s VR experience.
RETAIL PEOPLE - SPECIAL RETAIL CONGRESS EDITION .28
Frederic Fitoussi
Managing Director Palais Royal Technology
What is the market for Virtual Reality entertainment in the region? The Middle East emerge as one of the fastest-growing regions for VR gaming after US and Asia. According to the industry, the estimate revenue for gaming in the MENA region this year is USD 5bn. Approximately, the number of Middle East gamers is 100 million and close to 2.5Bn worldwide. With this numbers, VR gaming market will generate an estimate of USD 400M in the region this year.
What are the factors driving the virtual reality? VR has the ability to create a reality ‘outside’ of the real world. A safe space for consumers to isolate themselves from the real word, so VR has enhanced the gaming experience by offering a real-time ability to take gamers into their screens. The key factors that are driving the market growth including the rising demand of gaming is the youth or the Generation Z and Millennials. In fact, Hollywood is already stepping into VR. Cinema blockbuster movie producers start to understand the potential of VR. More and more producers are now adding a VR trailer to promote their movies.
What do you think is the people’s perception about VR? VR is still very new for most. People who tried VR for the first time are amazed by the experiences it can provide. The industry and consumers in MENA have a limited
