VZfit 3.0: Ring Racer launches Nov. 16!

Published on Nov 7, 2023

What's new in the world of virtual and mixed reality? VirZOOM's VZfit 3.0: Ring Racer Meta Quest 3 launch title!

Hi Everyone,

We’ve been heads down developing VZfit 3.0: Ring Racer, our exciting launch title for the new Meta Quest 3 headset.

The Quest 3 is a groundbreaking new mixed reality (MR) platform that’s gotten rave reviews from both press and customers since it shipped last month.

VZfit 3.0: Ring Racer is really new. There’s never been anything like it. It uses our patented and newly patent-pending tech to deliver an exciting new way to exercise in mixed reality, funded with a non-dilutive grant as a Quest 3 launch title. It ships on the Meta Quest store on November 16.

VZfit 3.0: Ring Racer is also the first VirZOOM app designed from the ground up to be used by anyone with a Meta Quest. No stationary bike needed, as was the case with previous VirZOOM exercise games. Eliminating the need to have a bike in addition to a headset increases our Serviceable Obtainable Market by an estimated 50-100x.

The Wall Street Journal reported 6 million active monthly users on Quest 1 & 2 a year ago. The Quest 3 platform has reportedly been selling well since its mid-October launch, with 30k+ sold on Amazon in the first two weeks alone – outselling the popular PS5 console over the same period. The installed base is solid and growing. Being able to reach all these Quest owners, new and old, with our unique solution gives us good reason to hope that the launch of VZfit 3.0: Ring Racer heralds a new era of higher revenue for VirZOOM.

Getting a workout as you race through and navigate obstacles on city streets is opposite to the way other VR Fitness apps work. They have you standing in place reacting to objects coming at you, and you are teleported from one scene to another. We think Quest users will welcome a fun, new way to get fit in a game that plays more like a real world sport than other VR Fitness apps do.

We’re also readying another exciting product for later this year. I can’t say too much about it yet but its roots are in a confidential project we did with Google back in 2018. We’re really excited to finally be bringing it to market on the Meta Quest soon.

Thanks so much for your support to get us here. We’ll let you know how VZfit 3.0: Ring Racer is performing, and give you details on the other new product as soon as it becomes available.

All the best,

Eric Janszen

Co-Founder & CEO

virtual reality metaverse fitness sports VR MR

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Brian Thomson

Nov 7, 2023

Hi Eric. This is all great news obviously and as an investor I thank for your and your team’s hard work. Would you be able to give us any future projections Eric as far as an exit goes? Whether acquisition, IPO or even possible dividend distribution? Thank you.

Eric Janszen

Nov 8, 2023

Hi Brian, That's a fair question. Here's how we think about it. According to a study by PitchBook, which analyzed data on over 10,000 acquisitions of technology companies between 1995 and 2020, the average time it takes for a technology company to evolve from inception to acquisition is 7.5 years. That's the average. Some will take less than 5 years and others 10 or more. VirZOOM was founded 8 years ago in 2015, so we're currently past the average. Several factors determine the length of time it takes for a company to be acquired. Two major factors are industry conditions and financial markets conditions. With respect to financial markets conditions, according to PitchBook data, the total number of technology company acquisitions in the first half of 2023 was down 38% from the same period in 2022. The total deal value of technology company acquisitions in the first half of 2023 was down 52% from the same period in 2022. Clearly we are in the down side of the financial markets cycle, which is not a good time in the cycle to be acquired. According to another report from PitchBook, the average length of a down cycle for technology acquisitions is 1.5 years. That implies that we have another year or more to go before activity and prices pick up again, if the current cycle conforms to the average. With respect to the condition of the VR industry, the dominant player Meta experienced a significant slowdown in sales in the first three quarters of 2023. In October 2023, Meta reported that Meta Reality Labs (the division of Meta that operates the Quest business) experienced a a 42% decline in revenue year-on-year. In my opinion that was largely due to diminished demand for the 2-year old Meta Quest 2 platform and limited marketing spending by Meta ahead of the launch of the new Quest 3 platform in Q4 2023. This slowdown tended to reduce consumer and investor enthusiasm for VR this year. Meta may see a significant boost in Meta Reality Labs revenue from sales of the new platform starting in Q4 2023 and throughout 2024. Apple and Google are both expected to enter the market in 2024. I expect VR industry sentiment to improve in 2024 in line with these developments. From this analysis it logically follows that a VR company that is looking for a near term exit should aim for acquisition in the period from the late 2024 to early 2025, after Quest 3 platform and store sales improve and acquisitions pick up as the financial markets recover. In addition, the market entry of Apple and Google can create multiple exit opportunities.

Jason Bennett

Nov 8, 2023

I think with coming up on 3+ years, Brian's question about the future is warranted. Is there a set timeframe we are working with here?

Eric Janszen

Nov 8, 2023

Hi Jason. See reply below.

Justin P Morreale

Nov 8, 2023

Great work Eric- and so smooth on the home stretch. Keep it up 👍. Good luck 🍀. Thank you 🙏 Justin 😎🙏👍🏆❤️‍🩹

Eric Janszen

Nov 8, 2023

Thank you, Justin!