This IDC Presentation was given as part of a larger IDC breakfast briefing called "Waypoints on the Consumer Digital Transformation Journey" at this year's CES (January 5, 2017). This Presentation primarily discusses the types of experiences that successfully exploit the immersive user interfaces that AR and VR platforms offer and that excite today's consumers — and what this implies for hardware, software, and content makers in the next few years. An important subtheme across AR and VR is a shift from an outside-in design philosophy to an inside-out approach.
"In VR, it's clear that games and spherical videos will be the first and second most monetizable content categories from a consumer angle over the next few years. In terms of AR head-mounted displays, the picture is a little less clear, but it appears the link between smartphones and relatively affordable 'smart glasses' that support AR and several other key functions will grow to be critical medium term and that social networking and communication apps, navigation-related apps, shopping-related apps, personal productivity apps, games, a fashion-conscious aesthetic, and a 'less is more' approach generally will be market aspects that separate leading consumer-facing providers from the herd." — Lewis Ward, IDC's director of Gaming and AR/VR.