Realizing effective stories in VR will require both the storytelling skills of Hollywood and the technological ingenuity of Silicon Valley for AI.
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The challenge to storytelling in VR is the inherent social nature of stories. The distinction among story types, linear, branching and organic is helpful but doesn't include the function of stories. Function (ability to fill needs) is at the root of tech adoption. Games, MMOs and linear storytelling (and even life) allow people to share experiences. AI will work in VR stories when VR can figure out how to allow shared, social experiences. Until then, VR remains a unique experience and sharing it is like having someone tell you about their dream. Interesting, sometimes, but not personally relevant enough to trigger emotional or sensory connection. Shared emotion is the glue of storytelling.