Owlchemy CEO: VR is still an emerging market because it hasn’t passed the ‘cafe test’
Owlchemy Labs CEO Andrew Eiche has articulated why virtual reality remains an emerging rather than established market: it hasn’t passed the “cafe test.” This concept suggests VR requires mainstream adoption levels where it becomes a natural topic of everyday conversation, comparable to other entertainment mediums.
Eiche’s comments arrive amid significant turmoil in the VR industry. Throughout 2025, major VR studios have announced substantial layoffs, including Survios, Twisted Pixel Games, Sanzaru Games, Armature Studio, and Vertigo Games. According to Eiche, these layoffs stem from a fundamental industry problem: companies are failing to create content that audiences actually want.
The CEO’s analysis points to a critical disconnect between industry supply and consumer demand. Rather than external market forces alone, Eiche suggests responsibility lies with developers themselves—studios must align their work with what VR consumers genuinely desire rather than operating on assumptions about the market.
The “cafe test” metaphor reveals the scale of VR’s adoption challenge. For the platform to achieve true mainstream status, it must transition from niche appeal to normalized everyday usage. Currently, VR discussions and adoption remain confined to enthusiast circles rather than casual consumer conversation.
Eiche’s perspective underscores that despite substantial investment and development efforts, the VR industry faces structural challenges in content creation and market positioning. The ongoing layoffs indicate these challenges are intensifying rather than resolving, suggesting the industry’s path to maturity remains uncertain.