The smart money is already getting in on the next generation of VR players. Venture capital firms have bet $3.5 billion on VR startups in just the last two years. Google-parent Alphabet (Nasdaq: GOOG), Facebook (Nasdaq: FB) and Sony (NYSE: SNE) have all spent heavily on VR with their own products.

But these mega-cap companies are poor bets on the booming space. Each has diversified revenue streams and VR represents little more than a blip in their sales forecasts.

The more focused bet will come from smaller companies with sales that could explode as they grab market share as VR hardware or software players.