SK Telecom, together with Facebook, is activating domestic virtual reality (VR) content. From the perspective of domestic consumers, as Facebook’s famous VR device’Oculus Quest 2’is being distributed through SKT’s online and offline distribution networks from the 2nd, complicated purchase procedures and A/S problems are resolved and new VR contents are secured. You can expect a positive effect.
Standalone VR device Facebook’Oculus Quest 2′(Photo = SKT)
Oculus Quest 2 is a VR device that Facebook unveiled at the Facebook Connect event in September 2020. It is a standalone device that allows you to experience VR without a smartphone or PC connection, and it has been well received for its price (414,000 won in Korea) that is more than $100 cheaper than the improved performance. The previous work, released in 2018, also succeeded in box office sales, recording more than 4 million units worldwide.
On the other hand, Oculus Quest is a rare device in Korea. This is because both products have not been officially released in Korea. Overseas direct purchase was possible, but the burden of tariffs and shipping fees followed, and the biggest problem was A/S. The Oculus series has no official repair shop in Korea. For this reason, it was a difficult environment to repair enough for the related community to self-help,’If it breaks, you should throw it away.’ In fact, aside from some early adopters, there were not many domestic consumers who were willing to purchase devices at the expense of various inconveniences.
To solve these problems, SKT will start selling Oculus Quest 2 in online channels such as SKT 5GX website, 11th Street, and One Store from the 2nd, and in SKT offline stores nationwide including Hongdae T Factory. SKT customers can purchase contracts for 12 months (34,500 won per month) and 24 months (17,250 won per month).
Especially, A/S becomes convenient. Consumers who purchased Oculus Quest 2 from SKT can consult with a Korean representative in Korea instead of an overseas call center in case of device failure. A dedicated technician visits and collects broken devices, so the A/S procedure is greatly simplified and a free A/S period of 1 year is provided.
New VR content is also scheduled to be added. On the Oculus Quest platform, you can enjoy more than 200 games such as’Beat Saver’, a VR rhythm game,’Population One’, a battle royale VR game, and’Real VR Fishing’, which is popularly developed and developed by a domestic operator. SKT releases new games such as’Crazy World VR’ and’Friends VR World’, which are jointly developed with Facebook in the first half, and SKT’s VR content platform’Jump AR VR’ on Oculus Quest 2 in the second half. It plans to link. In addition to games, Jump AR and VR can enjoy various VR cultural contents tailored to the tastes of domestic consumers.
The cooperation between SKT and Facebook is expected to have a positive effect on creating synergy in the VR business of both companies. The ultra-high-speed, ultra-low-latency 5G network possessed by mobile operators is the core of large-capacity VR streaming services. In particular, in order to facilitate online VR games and VR meetings in which a large number of participants participate, a high level of optimization is required between the content and the communication network, and both Facebook and SKT are working hard to expand large-scale social VR services.
Facebook’s VR social community platform’Horizon’ (Source = Oculus YouTube Capture)
At the September 2020 Connect event, Facebook announced’Horizon’, a VR platform that combines the existing virtual space design know-how and communication functions. Horizon is a space where you can chat with users around the world by voice or enjoy activities such as movies and games with your own virtual avatars.
SKT has unveiled’Virtual Meetup’, a VR meeting tool that can access up to 120 people at the same time in 2020. Like Horizon, you can conduct non-face-to-face meetings with virtual avatars, and it is characterized by enhancing the fun and satisfaction of meetings by creating a casual atmosphere based on 3D avatars.
SKT’s large-scale VR conference platform’Virtual Meetup’ (Source = SKT Insight)
In addition, unlike existing competitors such as Google and Samsung Electronics, which announced withdrawal of the VR platform business, Facebook and SKT are looking for a next-generation business model in strengthening the VR platform and content business. Facebook CEO Mark Zuckerberg emphasized at the Connect event last year that “using VR and AR technology,’everything from home’ (xFH) will be realized.”
SKT aims to increase jump AR and VR subscribers, which currently stands at 3 million, to 10 million by 2021. To this end, it is implementing aggressive business strategies, such as expanding and relocating the related content production facility, Jump Studio, to the headquarters T Tower in 2020.
On the other hand, while the two companies’ interests in expanding the realistic content business are consistent, it is expected that the two companies will expand their connection to domestic and overseas VR business. From Facebook’s point of view, it can aim for content diffusion and stabilization effects through service cooperation with SKT, a major 5G provider in Korea. SKT will also be able to promote customer expansion through distribution of the Oculus series and content collaboration with the Oculus platform, which has a strong overseas fan base.
Jinsoo Jeon, head of MR Service CO of SKT, said, “With the sales of Oculus Quest 2, SKT will have an omnidirectional mixed reality (MR) service system that encompasses the Jump VR/AR platform and Jump Studio.” We will take the lead in expanding related ecosystems through partnerships with them.”