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$70 BILLION BY 2020. THAT WOULD BE 10 TIMES WHAT THEY EXPECT THE INDUSTRY TO GENERATE BY NEXT YEAR. HERE WITH ME TO DISCUSS ARE OUR GUESTS. WHEN I HEARD THAT NUMBER, I THOUGHT THAT SOUNDS REALLY HIGH. WHAT DO YOU THINK? >> I THINK IT'S REASONABLE. EMILY: THEY ACTUALLY SAID IT'S AN UNDERSTATEMENT AND THAT IT COULD BE HIGHER. >> IT COULD BE. THE WAY WE LOOK AT THE MARKET, VIRTUAL REALITY IS A COMPUTING PARADIGM. THERE ARE AN AWFUL LOT OF COMPANIES WE WILL LOOK AT AND SAY THAT IS NOT OF VIRTUAL REALITY COMPANY, BUT THEY WILL BE USING VIRTUAL REALITY TO ENHANCE THEIR MODEL. >> I THINK IT'S GOING TO TAKE A WHILE IN THE NEXT COUPLE OF YEARS FOR PEOPLE TO GET HARDWARE IN THEIR HANDS TO BE ABLE TO CONSUME THESE KINDS OF EXPERIENCES, BUT THE POWER OF IT IS CLEAR. WE HAVE BEEN RUNNING SECOND LIFE NOW FOR 12 YEARS. A LOT OF USERS HAD ALREADY STARTED TO CREATE THESE KINDS OF EXPERIENCES AND VIRTUAL REALITY HAS TAKEN IT TO A WHOLE OTHER LEVEL. LAST YEAR, WE CASHED OUT 60 MILLION DOLLARS FROM USERS CREATING VIRTUAL EXPERIENCES. THAT'S JUST A GLIMPSE OF WHAT IS TO COME. EMILY: I WAS RECENTLY SPEAKING WITH THE CEO OF OCULUS ABOUT TO THIS VERY QUESTION. HERE IS HIS TAKE ON VIRTUAL REALITY AND WHEN IT WILL BE MAINSTREAM. >> WE DEFINITELY BELIEVE IN THE MASS MARKET THERE ARE GOING TO BE A LOT OF EARLY ADOPTERS, BUT IF YOU ARE LOOKING AT THE SMARTPHONE SCALE, THAT IS GOING TO TAKE A LONG TIME. >> OK, SO HE SAYS IT IS GOING TO TAKE A LONG TIME. I HAVE BEEN LUCKY ENOUGH TO TRY OCULUS . GOOGLE CARDBOARD IS THE ONLY THING I OWN. IT WAS COOL FOR 10 SECONDS UNTIL IT FELL APART. HEADSETS ARE QUITE EXPENSIVE . WHO IS GOING TO BUY THEM? >> GAMERS WILL OBVIOUSLY BUY THEM EARLY ON. SPECIALISTS IN ARCHITECTURE OR OTHER SITUATIONS WHERE YOU HAVE TO VISUALIZE 3-D SPACE, COMPANIES THAT WANT TO HAVE MORE EFFECTIVE MEETINGS WILL BE ABLE TO HAVE THEM IN VIRTUAL REALITY. GENERAL CONSUMER ADOPTION WILL TAKE LONGER. BUT A LOT OF BUSINESSES WILL BE ABLE TO TAKE ADVANTAGE OF THIS TO DO BUSINESS MUCH MORE EFFECTIVELY. EMILY: IS THERE A TIPPING POINT? IS IT WHEN OCULUS COMES OUT? >> I THINK THAT'S TOO EARLY. THERE ARE CERTAIN PIECES OF HARDWARE THAT ARE GOING TO BE AVAILABLE, BUT THEY ARE RIGHT -- BUT THEY ARE TOO MUCH OF A NICHE . GOOGLE CARDBOARD, AS YOU SAID, IS A SHORT EXPERIENCE. THE FIRST THINGS WILL BE USED FOR SMALL OUNCE OF TIME ON A SMALLER BASIS -- SMALL AMOUNTS OF TIME ON A SMALLER BASIS. IT WILL BE LEARNING WHAT THE RIGHT EXPERIENCE IS AN AND THE NEXT ITERATION. EMILY: YOU COULD NOT FIND A COMMERCIALLY VIABLE OPTION PREVIOUSLY. WHAT IS DIFFERENT THIS TIME? >> THE HARDWARE IMMERSION MAKES IT MUCH MORE APPEALING. A LOT OF LEARNING, A LOT OF TECHNOLOGIES COMING TOGETHER. WHAT WE DID 10 YEARS AGO WAS QUITE EARLY. TECHNOLOGY IS CATCHING UP SO THAT IT IS POSSIBLE TO CREATE THESE IMMERSIVE AND COMFORTABLE EXPERIENCES THAT YOU COULD NOT HAVE DONE FIVE YEARS AGO. EMILY: WHAT DO YOU THINK HIM A AREA? ARE PEOPLE GOING TO BE BUYING MORE EXPENSIVE HEADSETS -- THINK, ERIC? ARE PEOPLE GOING TO BE BUY MORE EXPENSIVE HEADSETS OR ARE CHEAPER HEADSETS GOING TO BE WHAT TAKES IT OVER. >> I THINK THE NUMBERS AND SCALE ARE GOING TO BE MORE NORMAL, FOR SURE. IF YOU ARE INTERESTED IN VIRTUAL REALITY THOUGH, AND YOU ARE NOT A GAMER, YOU WILL PROBABLY COME THROUGH THE MOBILE PATHWAY BECAUSE SPENDING A THOUSAND DOLLARS ON A PC IS PROBABLY OUTSIDE THIS GROUP -- THE SCOPE FOR MOST PEOPLE. BUT WE DO THINK PEOPLE WANT TO FIND A PATHWAY TO THE HARDWARE, SO IT IS REALLY JUST A MATTER OF TIME. EMILY: I HAD A CONVERSATION WITH BRIAN GRAZER, AND I ASKED IF WE WERE IN A TV BUBBLE BECAUSE