These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Cyberith, a new virtual reality gaming company. Cyberith’s gaming system enables users to step inside the games, become a character, and move freely about. Users can walk, run, sit, or do anything they want as they interact with the games surroundings and characters. Customers will likely be hard-core games who might play the games at home, fun-park, cyber-cafe or game hall. Cyberith will profit through the sale of the hardware and perhaps through a commission on the games sold by game developers.

1. ULTIMATE VIRTUAL REALITY
GAMING
Cyberith – Gaming at a whole new level....
Group members: Pasi Toeyraes, Christian Horn, Simon Christensen,
Mads Dalsgaard & Jakob Thorup Hansen
Business models for other technologies can be found here:
http://www.slideshare.net/Funk97/presentations

2. Table of content:
• Introduction
• Gaming Timeline
• Presentation of Cyberith
• Value Proposition & Competitors
• Customers
• Key activities and resources
• Revenue model
• Business model canvas
• VR in Future

3. INTRODUCTION TO
VIRTUAL REALITY
“What is real? How do you define real? If you're
talking about what you can feel, what you can smell,
what you can taste and see, then real is simply
electrical signals interpreted by your brain.”
- Morpheus (The Matrix)

4. GAMING TIMELINE
c. 3100 BC
First boardgame: SENET
Egypt game, played
in the tomb of Merknera
c. 3200 BC
Invention of the Dice
c. 600 AD
Manacala
Invented in Ethiopia
1896 AD
Ludo
Chess
Invented in Persia
c. 700 AD
Magnavox
First gaming console
c. 1972 AD
2015 AD
Cyberith

5. CONSOLE GAMING TIMELINE
c. 1983
Nintendo
1972 1994
PlayStation
2012
Nintendo Wii U
XBOX
2001
Magnavox
First gaming console
2013
2015
Cyberith1996
Nintendo 64
2000
PlayStation 2
2005
XBOX 360
PlayStation 3
2006
Nintendo Wii
XBOX One
PlayStation 4

6. CONSOLE GAMING
MARKET SHARE
Source: ITCandor, 2014
Nintendo:
Leader within interactive gaming (Wii)
Sony:
Develop their own product:
Sony VR Headset

7. CYBERTIH & OCULUS RIFT

8. CYBERTIH & OCULUS RIFT
GAMING
VR GAMING
ULTIMATE
VR GAMING

9. CYBERITH

10. VALUE PROPOSITION
Gaming is not enough ...

11. VALUE PROPOSITION
CYBERITH VIRTUALIZER
”Reality is not enough - Be Part of the Game”
Next Level of VR
Step inside the game
and become your
character …
Full Immersion
Control your game
character with your own
movements – walk, run, …
No Restrictions
You decide how you move
free of restrictions. The
ultimate gaming freedom!

12. VALUE PROPOSITION
CYBERITH VIRTUALIZER
”Affordable High-Tech Hardware Made in Europe”
FULL
COMPATIBILITY
Game Revolution
Throw away your mouse
and keyboard …
Smart Sensors
Sensors in the base plate,
pillars and ring track the
movement of your body
Strong Material
A strong metal
construction is built to last
guaranteeing a long-
lasting product
Flat Base Plate
The flat base guarantees
walking like in the real
world
No Noise
As you play in your socks,
there is no noise
No Shoes Needed
The low-friction base plate
allows you to play in your
socks
USB-Plug & Play,
no additional power supply,
compatible with all software that allows
controller or keyboard input,
SDK for developers will be available soon
* Pre Order Starting Soon – Cyberith Virtualizer 999$

13. PLAYERS ON THE MARKET
VIRTUAL REALITY GAMING
Visual Movement
Hand device &
Joystick

14. VALUE PROPOSITION
CYBERITHS COMPETITORS – VIRTUIX OMNI
Virtuix Omni - Step into the Ultimate Virtual World -
The Ultimate Immersive Experience
First of-its-kind virtual reality system,
Step into your favorite game and experience
a whole new level
Freedom of Movement
Walk, run, strafe, sit, or jump 360° without
restraints
Full VR Gaming Platform
The first, most compact, easily assembled and affordable
VR gaming platform
* Pre Order Available – Omni Package 699$

15. VALUE PROPOSITION
CYBERITHS COMPETITORS – PRIOVR
PrioVR - Suit Up. Game on. -
* Pre Order Available – PrioVR 289$ to 429$
All PrioVR Needs is You!
Uses high-performance inertial sensors to
provide 360° of low-latency, real-time motion
tracking without cameras, optics, line-of-sight,
or large equipment
PrioVR is wireless, allows multiple simultaneous
users and will work anywhere – indoor and
outdoor
All PrioVR suits come with demo games so you
can experience the freedom of full-body
gaming from day 1.

16. VALUE PROPOSITION
OVERVIEW
• Run, jump, rotate (360°), sit
• No noise
• Compatible (Soft & Hardware)
• Easy to use
• Space requirements
• Additional equipment required
• Lifelike gaming experience
• Price
Advantages
and
Disadvantages
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17. CUSTOMERS
Markets to target and potentiel markets

18. Customer
Segments
Potential Markets
Business Markets
Privat Markets
CyberCafé
Funparks, Bowling
halls, etc.
Gamehalls
KT&T (Boys)
Military
Hardcore Gamers
• Private Markets are the largest
and most obviously customer
semgent.
• Business Markets will be a smaller
part of the totally sale revenue.
However, the markets can brand
the product and lead to more
sells in the private.
• The product is new and therefore
CYBERITH should be aware of
new potential markets
CUSTOMERS
CYBERITH VIRTUALIZER

19. CUSTOMERS
CYBERITH VIRTUALIZER
Private Markets
Boys (15-20)• The products VP targets young boys and hard core
gamers
• The product is cheap enough to private customers.
Challenge
• The size of the product. (Mothers do not allow such a
big machine in the living room, like they do for
products as Nitendoo Wii.)
Solution
• Teenager Boys often have their own rooms where they
decide what matters.
• Hard Core Gamers priotize the VP so much, so it
overrule issues such as design and size of the product.

20. CUSTOMERS
CYBERITH VIRTUALIZER
Business Markets
Gamehalls• The product fits perfect to gamehalls.
• Gamehalls can be seperate units or be in places such
as bowling halls and fun parks.
• The amount of gamehalls is releatively small, therefore
is the sales revenue for this market small as well.
Side Benefits
• Gamehalls attract different kind of people.
• Gamehalls introduce the product to people (also
people which normally would not buy the product).
Therefore the product will be branded more broadly.
• Gamehalls can create new customers in the private
market.

21. CUSTOMERS
CYBERITH VIRTUALIZER
Potential Markets
• Two examples for potential new markets are the Military and
Cybercafés.
Military
• Governemnt spents lot of money on military training.
- Equipment, granates and gunpowder is expensive.
• Cyberith Virtualizer could simulate training exercises and safe
money on training and bullets.
• Challenge – The product needs improvements for the purpose.
Cybercafé
• History has shown that gamers like ”gaming” together in so-
called Cybercafés. The trend still exists, but gamers can now
easy connect their computers in the same room.
• Cyberith Virtualizer is a big machine so perhaps it is time for
Cyberith-cafés.
Cybercafé

22. KEY ACTIVITIES AND
RESOURCES

23. • Launched in July 2014
• For promoting and funding
• 577 backers pledged $361,452
• $799 for standard product
• $999 for product with haptic feedback

24. DEVELOPMENT
• Development started in 2013 for a product with no
restrictions and full immersion
• Small team based in Austria
• Intellectual property:
• 1 published patent for a device accommodating
person and partially limiting the freedom of movement
of the person
Patent WO2014166814A1

25. PRODUCTION
• Production, shipping and logistics are outsourced to
experts for the respective areas.
• Some materials and parts also subcontracted
• Launching postponed to August 2015
• Assuring maximum compatibility to other VR devices
• Makeover of the tracking system integrated in the
pillars

26. REVENUE MODEL

27. MARGET SEGMENTATION
Asia 45.1 %
North America 27.2 %
Western Europe 18.9%
Others 8.8%
http://www.newzoo.com/insights/top-100-countries-represent-99-6-81-5bn-global-games-market/
Target Market
Total Available Market
1,7 billion gamers
Serviceable Market

28. POTENTIAL MARKET / TARGET MARKET
http://www.kzero.co.uk/blog/consumer-virtual-reality-market-worth-13bn-2018/

29. REVENUE MODELS
• Production model
• Licensing model
Revenues
Product End users
Game developers
% Game
sales Development
Kit

30. REVENUE MODEL
= Shared revenue
$
$
$
$ = One time payment
$
Customers
Game developers
Game halls

31. BUSINESS MODEL
Business Model Canvas
Key Partners:
• PrioVR
• Game
developers
Value
Propositions:
• More realistic
(gaming)
experience
Customer
Segment:
• KT&T who
play on
gaming
consoles.
• Gamehalls
etc.
Key Resources:
• Interllectual
(Know how)
Key Activities:
• Development
• Game
development
Channels:
• Retailers
• Advertice-
ments
Customer
Relationsships:
• Purchase
• Maintainance
Revenue Streams:
• B2B & B2C
• One time payments (The product)
• Shared revenue (% of game sales)
Cost Structure:
• Value driven
• Manufacturing costs

32. VIRTUAL REALITY IN THE FUTURE
• Surgery
• Transportation
• Vertebrane – Brain computer interface

33. VIRTUAL REALITY IN THE FUTURE
• Surgery
• Used to train new surgeons
• No risk of damage – yet realistic experience
• Robotics surgery with virtual reality inputs
To some degree already possible
• In near future surgery on a patient can be
performed from another location
• The best surgeons are available all time when distance is no longer an issue
• Need exact force feedback from the robotic equipment before the scenario can
come true

34. VIRTUAL REALITY IN THE FUTURE
• Transportation
• Car, trains, airplanes
• Using displays as doors, wall, windows etc.,
makes it possible to show the outside world
in real time
• Airlines
• Ethihad and Emirates have already made som speculations in VR airplanes

35. VIRTUAL REALITY IN THE FUTURE
• Vertebrane – Brain computer interface
• Upper cervical vertebrae replaced by super nanocomputer
• When turned off – Their will be no effect and the brain will
function normally
• When turned on – All biological impressions will be stopped
and only signals from the nanocomputer will be perceived
• When the brain is totally cut off from the real world – The Ultimate
virtual reality experience comes to life – The brain lives in an avatar
World
• You can create the perfect world
• You can fly, you can be the richest person on earth – you can do whatever you want
• Examples of brain computer interface: The Matrix, Surrogates and Avatar

36. VIRTUAL REALITY IN THE FUTURE
• Vertebrane – Brain computer interface – The downside
• The Avatar world is much better than the real world
• Everything is possible – impressions, feeling etc. Seems just as real as in real life
• Nobody wants to live in the real world anymore
• The human body becomes redundant
• Only the brain is needed
• Stored in a so called brain bank
• No more human interaction – everything happens
In the avatar world

37. VIRTUAL REALITY IN THE FUTURE
• Vertebrane – Brain computer interface
• End of humanity as we know it ???
?