Introduction to the Fifth Edition

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This, the fifth edition of The Market for Visual Simulation/Virtual Reality Systems, is bigger, more detailed, and more comprehensive than any previous version. There are several reasons for this.

First, we have listened to our clients, and added significantly more Financial Findings than in previous years. In fact, this year the Financial Section is more than three times larger than last year. We have provided much greater granularity in all aspects of the Financial Findings, which will make this information generally more useful, and specifically more focused for readers in various industries. We anticipate that this information will be very useful to company financial and marketing officers, general management at VizSim companies, investors in VizSim companies, and to purchasers of VizSim systems.

Secondly, we have provided breakdowns of many of the data based on specific application areas. This will enable all readers to see with much greater clarity how systems are valued, quantities of systems and components sold, and many other bits of information for specific application foci.

Thirdly, we have asked, for the first time, that our respondents provide us with an approximation of how their spending for VizSim systems is apportioned to specific aspects of these systems. This permits us a much deeper look at many of our other questions, and provides a far better understanding of many aspect of the industry. We asked our respondents to apportion the cost of systems among ten items. They are:

• Display System(s)
• I/O Device(s)
• Image Generator(s)
• Maintenance
• Other
• Other Computer(s)
• Other Hardware
• Site/Location Preparation
• Software and Software Development
• Tracking System(s)

We find good news in our Financial Findings this year. After a decline in growth last year, the VizSim industry has bounced back, with a annual growth rate of over 29% compared to last year. We see strong growth in virtually all areas of the industry, and our forecast is that it will continue strong for the next several years.
This year we were pleased to record the greatest response to date to our annual survey of the industry. Over 500 individuals responded to our invitation to participate, and 397 completed questionnaires on which this report is based. That strong response allows us to feel more confident than ever in the results we report here. In addition, our respondents verified last year's projections, making this picture of the VizSim industry consistent and reliable.

We are looking forward to next year's installment in this ongoing story, and welcome comments and suggestions. Please send your messages or questions regarding this study to research at cyberedge.com.

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