Investors turn cautious as fears of a bubble loom

After a massive capital injection into the virtual reality (VR) sector from the end of 2015, investors are now becoming more cautious as an increasing number of players enter the market, fueling a bubble in the emerging sector.

According to a report by US consulting firm CB Insights, the VR deal volume worldwide plunged 37.8 percent over the second quarter of 2016 to 23 percent from the fourth quarter of 2015, when deal volume reached its peak of 37.

The amount of investment in the VR industry also experienced the same decline.