How Much Does It Cost to Start a VR Business?
The short answer: from $40,000, but don’t take that as a given. Starting a VR arena, studio, or tourism-focused attraction involves far more than buying a few headsets and expecting people to line up. You’ll need hardware, software, staff, and marketing. This certainly affects the VR business cost.

Approximately 171 million individuals use VR globally. The VR market is growing by over 30% a year. So, it is no wonder that entrepreneurs are rushing into this niche and want to capitalize on it. However, many founders underestimate what it actually takes to launch.

So, how much does it cost to start a VR business? At Another World, we’ve opened our own venues and helped business owners around the globe do the same. We know the real costs, including the ones people forget about. Below, we share industry-validated numbers and show why franchising might just be your smartest move. Let’s budget like pros!

VR Arena & VR Arcade

Types of VR Businesses

VR Tourism

Not all VR businesses are built the same, and neither are their budgets. The type of VR company you choose largely determines the required investment.

VR Content Creation

Physical venues where visitors pay to play VR games generate steady revenue. You’ll need to invest in expensive headsets and motion trackers, commercial real estate in high-traffic locations, and interior design. In 2025, the major trend is free-roam VR, where players move naturally through large spaces. This means you’ll need more room and a bigger budget.

VR Subscription Services

Under this model, VR sets are placed in locations that are popular with tourists. The real costs are influenced by 5G-enabled streaming systems, haptic platforms, and exclusive story content. In 2025, VR tourism will be a great upsell tool for the travel industry—the “try-before-you-travel” concept is gaining traction. However, expect licensing and insurance costs to increase, too.

VR Social Platforms

Studios can create immersive experiences for companies, gamers, and events. They pay for development software, high-end workstations, and skilled 3D artists and developers. This business type is not as location-dependent, but the competition is tough. In 2025, enterprise customers and leading game development companies are driving demand for VR simulations.

VR Enterprise Solutions

This type of business is suitable if you like building long-term relationships and would like a regular income stream. You can create a subscription-based VR platform and offer users access to a range of games, fitness apps, and social entertainment for a monthly or annual fee.

This model generates stable, recurring revenue and lowers the entry barrier for those who don’t want to create games. You’ll have to invest in an extensive content library, but you won’t spend money on real estate and equipment. In 2025, retaining subscribers will require you to update your content regularly and manage your community, but it is a viable concept.

If you want an option with built-in branding, support, and pre-tested hardware and software setups, choose an appropriate franchise. For example, for arenas, Another World would be a good fit. The VR business brokers franchise cost is usually lower than the cost of setting up from scratch.
For those looking to the future, there is another model. You can launch virtual social spaces! It’s a dive inside the VR world. You will own an app for virtual user interaction where your clients meet and collaborate together. These platforms are monetized through subscriptions, in-app purchases, and premium features such as avatar customization or exclusive events.

Building a social VR platform means investing in scalable servers, moderation tools, and user-generated content systems. In 2025, the focus will be on integrating the meta-universe and creating safe communities that will keep users coming back to play games and attend virtual events.

One more idea: you can aim your developments at influential business people and large companies. A VR company of this type is actually a studio with a narrow specialization in enterprise solutions. You’ll develop training, simulation, and collaboration tools for healthcare, manufacturing, and education.

Such solutions operate on a licensing or price-per-seat model, providing enterprise customers with cost-effective and risk-free training options. You’ll need to build scalable, secure software and partner with hardware vendors to ensure interoperability. In 2025, demand for VR that improves remote working, employee onboarding, and complex skills training will grow.

You can’t avoid buying a few headsets, of course. And since it’s the equipment that sets VR companies apart from all other entertainment businesses, let’s start here. In terms of VR headsets and accessories, you may choose:

Hardware Investments

You are also free to choose a cheaper Meta Quest 3S, a more expensive HTC Vive XR Elite, or something in between, like PICO 4. Accessories, controllers, haptic feedback devices, and hygiene covers are additional considerations, potentially adding $100–$300 per setup.
For VR setups that rely on PC tethering, you’ll need robust computing power. It is advisable to have:

  • Processor: Intel Core i9, Intel Core i7-11800, AMD Ryzen 9.
  • Graphics: GeForce RTX 3080 or greater.
  • RAM: 32 GB recommended (minimum 16 GB!)
  • Video Output: Compatible HDMI 1.3 video output.
  • OS: Windows 8 SP1 64-bit or newer.

Systems like the Razer Blade 15 (with 11th or 12th Gen Intel Core i7 processors and NVIDIA GeForce RTX 3070 or 3070 Ti GPUs) are tailored for VR apps. Expect to invest around $3,000 to $4,000 per unit, depending on configurations.

Then, select motion tracking systems. You may like:

  • Professional solutions like Xsens, OptiTrack, and Vicon that offer high-precision tracking suitable even for complex motion capture studios. Normal costs start at $4,500–$15,000; full setups—$25,000.
  • Consumer options like HTC Vive Trackers that provide budget-friendly full-body tracking. They cost approximately $400 to $600. The choice depends on your immersion needs.

Beyond this, consider reliable routers and switches to ensure low-latency connections and high-quality headphones or spatial audio setups. Remember: if you buy cheap now, in a year or two, you will have to replace it.

How much does it cost to start a VR business in terms of equipment? Work this out based on your needs and decide what content to use. Games and simulators are front-runners here. If you’re looking to build those from scratch or tweak existing ones with your own ideas, you’ll need development platforms.

Unity is a firm favorite for a lot of creators, mainly because it’s flexible and has a community ready to help out. If you’re looking at Unity Pro, keep in mind that it currently costs around $2,200 a year per user. That’s about an 8% bump from what it was previously. This Pro plan is for businesses making over $200,000 a year. And here’s some good news: Unity listened to developers and scrapped that controversial Runtime Fee. So, it’s back to the simpler per-seat subscription.

Then you’ve got Unreal Engine, which is a powerhouse if you’re aiming for high-fidelity VR experiences. You can use the engine itself for free. Epic Games only starts taking a 5% cut once your game or product brings in over $1 million in gross revenue. Plus, starting January 1, 2025, if you launch your game on the Epic Games Store at the same time across multiple platforms, that royalty drops to 3.5%.

As for the rest of the organization’s activities, software and corporate apps will automate certain parts of the business. To focus on the most important matters, use:

Software and Development Tools

Additional tools. Creating immersive VR requires supplementary software: Adobe Substance 3D for texturing and material creation, the open-source 3D creation suite Blender, and additional plugins and Software Development Kits.
It’s advisable to allocate approximately 15% to 30% of your budget to software licensing and tools. This will ensure you have a comprehensive development environment.
Let’s move on to the people responsible for managing the business. A company owner cannot perform all tasks; they’d simply burn out. Therefore, it is necessary to budget for human resources. And it’s not just about hiring a certain number of people and making them work. When calculating VR business costs, look at the following three categories.

1. In-house vs. freelancers
If you’re looking to hire full-time VR developers in the U.S., you’ll find average annual salaries hovering around $92,000 to $110,000. VR engineers earn more, with average salaries near $115,000. This roughly translates to an hourly rate of about $55. Don’t forget to factor in extra expenses like benefits and recruitment fees.
Freelance VR developers offer fantastic flexibility. Their hourly rates typically range from $25 to $150–200, depending on their level of expertise and how complex your project is. This can be a great option for short-term projects. However, if you need highly specialized skills, the rates might climb.

2. Specialized roles and salaries
In addition to developers, you’ll need Game Dev & Design team members. For example, in the U.S., 3D artists creating immersive environments generally earn an average salary of about $66,245, with pay ranging from $38,000 to $106,000.
To make sure the VR experience feels intuitive and engaging, you’ll need skilled UX designers. Their average salary is around $93,000. For highly experienced designers, this goes up significantly, sometimes even reaching $300,000.

3. Training and development
VR is always evolving, so investing in training to keep your team’s skills sharp is vital. Costs for VR training programs vary:

  • Getting an individual started with VR training will initially cost around $300. The good news is that over the course of about three years, as you scale and reuse training materials, the average investment per person drops to roughly $115.
  • If you want to develop more extensive, customized VR training solutions for your company, you could be looking at costs of anywhere from $40,000 to $180,000. The price point depends on the complexity of the content and the level of customization.
If you join the franchise that boasts an average monthly revenue of $10,000 per arena and a payback period of 8 months (yes, Another World), you will get assistance with staff training.

Staffing and Expertise

Legal and Administrative VR Business Costs

Now, let’s look at some legal and operational expenses you’ll want to plan for. Why? They’re unavoidable, so it’s best to take them into account in advance. Plus, this way, your business will operate honestly and inspire trust.

You’ll need to register your business. In the U.S., the cost of doing this depends on the state and the type of your business structure. Creating an LLC may cost you from $50 to $500, a corporation—up to $800. On top of that, you might pay a name reservation fee, franchise tax, or trademark registration charge, which will add another $20–500 per year.

Consulting a lawyer is a smart idea. Especially if you are not sure what to do with contracting or compliance. Attorney consultation fees fluctuate from $150 to $1,000 per hour. Then, depending on what your VR business does and where you’re based, you might need specific licenses or permits. The costs can be all over the map, so find out exactly what’s required in your jurisdiction.
VR businesses, if you’re offering experiences people come to, need a physical location. Rent for an office or studio depends on the city, how big the space is, and what perks it comes with. Just as an idea, in the U.S., you might find a space costing $500–5,000 a month + utility costs (about $1,000) + Wi-Fi ($100 to $500 per month).

On the other hand, if your VR business is more about creating content or providing services remotely, you might be able to work from home or in a co-working space.

Physical Space

Don’t forget the durable flooring, cabling systems, and safety measures required for active VR use, as well as adequate ventilation and cooling systems to maintain optimal operating temperatures for both users and equipment.

Business Operations and Infrastructure

So, you’ve got your VR business up and running. Now, how do you get customers excited and walking through your virtual (or real) door? It comes down to a combination of creating an outstanding brand, marketing online, and holding events. Below, we explore roughly how much it can cost:

1. Brand development
Simple logos may start at about $300, business cards—about $50. If you’re aiming for a really polished look and want to work with a full-service branding agency, costs can start around $2,500 and reach well over $10,000. Developing brand visuals (color palettes, typography, and brand guidelines) can cost up to $70,000.

Note that VR business brokers franchise cost for branding is way lower than that of an independent startup.

2. Digital marketing
To get your VR business seen online, you’ll need a website. It is your 24/7 digital storefront. Costs depend on how fancy you need it to be: for a straightforward informational site, think about $500–5,000; for a custom one with special features—$30,000 or more.

Then, make sure people can find your website on search engines like Google. Monthly SEO packages run from $1,500 to $2,500. For more comprehensive local SEO, you might spend more.

You’ll also want to connect with people on platforms like Facebook, Instagram, and Twitter. Budget for ad spend ($850 to $2,000 per month) and ad management (10–20% of your monthly ad spend).

3. Events and promos
Exhibiting at trade shows can really boost your brand’s visibility, but that’s expensive. Just renting a 20×20 foot booth space could set you back around $12,000. And that’s before you add travel, marketing, and other costs. Alternatively, you can run a promo and create some buzz around your product. With this option, you will likely see bills of around $300 to $600 per guest.

Marketing and Customer Acquisition

Virtual vision

Maintenance and Upgrades

Finally, you’ve outlined the main costs. But what about the unplanned expenses that may crop up? So, how much does it cost to start a VR business? Unfortunately, there’s no price list to refer to. It’s critical to think about hidden VR business costs—they can make a dent in your budget if you’re not prepared.

Your VR hardware, just like any tech, needs some TLC to perform at its best. Regular maintenance and the occasional repair will be required. You should budget around $1,000 a month for this, though it depends on how heavily you use your equipment.

To keep your arcade fresh and stay competitive, you’ll need to upgrade your hardware and software from time to time. This means setting aside some extra money for enhancements.

If you want to deliver a ready-made, professional, and quality VR experience and save time and effort, you will need to pay for licensing. But you don’t have to worry too much about it! Firstly, it’s a normal practice. Secondly, the costs are not significant.

Expect to pay between $1,000 and $5,000 per asset for exclusive VR content, depending on the uniqueness of the content and usage rights.
Playing by the rules is a must. Think about costs for things like permits, safety certifications, and perhaps some legal consultations to ensure you’re compliant. This could add around $1,000–3,000 yearly. It might seem like an extra expense, but it’s what keeps your VR business on the right side of all necessary legal requirements.

Virtual Reality Content Licensing

Legal Compliance

VR Business Insurance

Premiums for general liability insurance cost $400–2,000 annually. The amount you’ll pay depends on the size of your business, location, and amount of coverage. This type of insurance helps cover costs in the case of things like property damage or bodily injury.

Allocate a portion of your income (around 15%) to cover licensing costs. These fees are necessary: you are using someone else’s development and making sure the experience remains cutting-edge and compliant with VR industry standards.

Hidden and Unexpected VR Business Costs

Now look at a couple of tips for aspiring entrepreneurs:

1 . Budget beyond the big-ticket items
It’s easy to get caught up in the upfront VR business costs like headsets and a cool space. But look at the whole picture. Think of things like keeping your gear maintained (that could cost around $1,000 per month), liability protection ($2,000 annually), and content licensing fees for third-party VR experiences (about $5,000).

2. Keep learning and growing
VR changes in the blink of an eye. So, always being a student of the game is very important! Hopping onto VR conferences and webinars isn’t just about staying updated; it’s also a way to meet people and make connections. For instance, going to a big event like the Game Developers Conference can bring new energy to your business.

3. Ask for help
Be honest: dealing with all the ins and outs of a business is hard. Don’t be afraid to call in the pros! Whether it’s for legal advice, tech challenges, or getting your marketing right, experts offer guidance. A marketing consultant might charge between $50 and $500 per hour, but the know-how they bring can save you from expensive mistakes.

Recommendations for Getting Started

Now, you don’t have to wonder, “How much does it cost to start a VR business?” We hope our guide has helped you get your head around it. If you realize you have a big investment to make but want to save money, take a look at Another World VR.

We offer a business model that’s already been tested and proven by over 350 partners across 52 countries. We will help you get set up quickly; we can install and configure your equipment in 2–3 days. What’s more, our VR arenas are designed with profit in mind, with the capacity to host up to 14 players at once, which is great for your revenue per square foot. All you need is around $40,000–60,000 to invest and a desire to launch.

Ready to bring immersive VR experiences to your neighborhood? Enter the industry and start a profitable business — partner with the best VR business franchise opportunity — Another World!

Partner with the Best VR Franchise Company Today!

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