The Extended Reality Economy: Where Is Value Created After the Hardware Is Sold?

When I present virtual and augmented reality experiences to a new audience, I see that attention goes first to the device itself: its size, its screen, its weight and its price. This is natural, since it is what can be seen and touched. But whenever I work with organizations that want to benefit from this technology, I find that the more important question comes after the purchase: what will we do with the device the next day?

A device is a gateway, not a destination. What makes it worth the investment is what is delivered through it, who uses it, how often, and with what impact. That is why I look at extended reality as a multi-layered economy, not only as a device market.

This idea seems logical, because the device is the first line in the budget and the clearest invoice. But it hides an important truth: without suitable content, training, maintenance and a plan for use, a device quickly becomes a device in a drawer. Real value appears when the device becomes part of daily work that solves a problem, saves time or adds an experience not available otherwise.

I see value spread across five main layers around the device:

•     Content and experiences: training programs, simulations, tours, learning material and entertainment experiences, which give the device a reason to be used.

•     Software and platforms: systems to manage content, devices and users, and platforms to distribute and update experiences with ease.

•     Integration and customization: connecting the solution to the organization’s systems and processes, and adapting the experience to the needs of the sector and the audience.

•     Training, operation and support: preparing users and supervisors, maintaining devices and solving problems quickly, which is what ensures continuity.

•     Data and impact measurement: knowing how the experience was used and what people learned or achieved, to improve the solution and prove its value.

In all honesty, I should mention the mistakes I see repeated, because knowing them saves a great deal of money and effort:

•     Buying devices before defining the use: devices are counted by number, and the question of purpose and audience is left for later.

•     Ignoring the cost of content: the budget covers the device, and not enough remains to develop suitable experiences or update them.

•     No training and support: devices need people who know how to operate, set up and run sessions.

•     Neglecting user comfort and safety: session length, lighting, device hygiene and suitability for the age group are basics of the experience.

•     Not measuring impact: if we do not know what was actually achieved, it is hard to justify continuing or expanding.

There is no single model that suits everyone, but I see that lasting businesses in this field rely on a mix of these sources:

•     Content licensing and subscriptions: recurring revenue for access to a library of experiences or a platform.

•     Custom development projects: solutions designed for a specific body and a clear goal, such as employee training or presenting a heritage site.

•     Managed services: running the experience, maintaining it and supporting users under a periodic contract.

•     Training and consulting: building team capabilities, setting the plan for use and measuring impact.

•     Events and live experiences: showcases at fairs, museums and conferences that introduce people to the technology and open new opportunities.

Before I advise any body to expand, I begin with simple questions: Who is the audience? What is the problem or opportunity? How will people use the experience after a week and after a year? Who will manage operation and support? How will we measure impact? When the answers are clear, buying devices becomes a decision that follows from a plan, not a start with no destination.

I prefer to begin with a limited pilot that proves the value and reveals the operating needs, then expand gradually. This protects the investment and builds the trust of the team and the audience.

What I want readers to take away is that the extended reality economy is wider than the device market, and that the greater value is created around the device: in content, software, integration, training, support and data. Whoever understands this early plans with a more realistic budget and achieves a longer-lasting impact.

If your organization or company is considering virtual or augmented reality, in education, training, tourism or industry, I would be glad to build together a plan that starts with the goal and the audience, and arrives at a clear operating model and value.