Sales of virtual-reality devices are expected to reach 14 million units in 2016 as the industry gets more mainstream attention and Facebook Inc. FB, -1.73% begins selling its consumer-level Oculus Rift, according to a new report from industry tracker TrendForce. The company expects virtual reality, not smart watches, to ultimately lead the adoption of smart wearables, with initial interest and adoption spawned by videogames. Major entertainment companies, including Walt Disney Co. DIS, -2.50% , Oculus, Samsung Electronics 005930, -1.35% and Sony Corp. SNE, -0.87% , are already promoting virtual-reality gaming and videos. Meanwhile, the introduction of the Apple Watch AAPL, +3.03% did not "create takeoff growth opportunities" in the wearable market like many analysts had predicted, said Jason Tsai, TrendForce's wearable device analyst. He says virtual-reality headsets have a clearer market positioning than smartwatches. However, Apple alone is expected to sell 24 million watch units in fiscal 2016, according to poll of 18 analysts on FactSet.