VREAM
| Company type | Private |
|---|---|
| Industry | Virtual reality software |
| Founded | 1 January 1991 in Chicago, United States |
| Founder | Edward R. LaHood |
| Defunct | 1996 |
| Fate | Acquired by PLATINUM Technology |
| Headquarters | Chicago , United States |
Area served | Worldwide |
Key people | Edward R. LaHood, Ken Gaebler, Dan Malven |
| Products | VREAM Virtual Reality Development System, VREAM Runtime System, WIRL, VRCreator |
| Parent | PLATINUM Technology (from 1996) |
VREAM, Inc. was a technology firm based in the United States that operated between 1991 and 1996, known for pioneering PC-compatible software designed to create and experience virtual reality (VR) environments.
Company history
Established in Chicago in 1991 by Edward R. LaHood, a former consultant at McKinsey & Company, the company’s name derived from the phrase "virtual reality dream." In 1993, Ken Gaebler and Dan Malven joined LaHood as co-founders.
LaHood developed VREAMScript in 1991, a scripting language tailored to construct intricate 3D models, define environmental properties, and set interactive triggers within VR settings. The firm introduced the VREAM Virtual Reality Development System, a PC-based authoring platform, alongside the VREAM Runtime System, which enabled real-time exploration and interaction within virtual worlds.
The combined VREAM Virtual Reality System, integrating both creation and runtime functionalities, was launched in December 1992 with a retail price of $1,495. It supported multiple immersive hardware devices, including the Power Glove, thereby enhancing user engagement.
Initial Impact
Prior to 1992, real-time 3D graphics were predominantly confined to advanced workstation computers and required specialized programming skills. The emergence of more powerful PCs—accelerated by technological advances like Intel’s Pentium processor introduced in 1993—made desktop-based virtual reality simulations feasible. Drawing on his programming background, LaHood created the first PC-oriented VR authoring tool accessible to users without programming expertise. (Meanwhile, Sense8 founders Patrice Gelband and Eric Gullichsen released WorldToolKit in early 1992, a VR library aimed at developers constructing desktop "virtual world" applications.)
VREAM’s software rapidly gained popularity among enthusiasts due to its cost-effectiveness and user-friendly design compared to workstation alternatives. Its applications spanned architectural walkthroughs, industrial training programs, game development, engineering prototyping, data visualization tasks, and simulation exercises. Additionally, clinical uses included treatments for public speaking anxiety, fear of heights (acrophobia), and male erectile dysfunction.
Alongside its software offerings, VREAM provided VR development services. Prominent clients comprised Burger King, which commissioned a futuristic restaurant concept for its franchise conference, and Bombardier Recreational Products, for whom VREAM developed virtual showcases of their Sea-Doo and Ski-Doo product lines.
Web-Based VR
In 1994, inspired by co-founder Malven’s recommendation and the expanding World Wide Web landscape, VREAM transformed its runtime player into a plug-in compatible with Netscape Navigator, branding it WIRL. Subsequently, it was also released as an ActiveX control for Microsoft Internet Explorer.
During an era when web-based applications were emerging technologies, WIRL achieved considerable success, ranking as the fourth most downloaded software after Netscape Navigator, MPEG Player NET TOOB, and HotDog Pro. Within its initial month on the market, WIRL surpassed 30,000 downloads, effectively boosting awareness of VREAM’s solutions.
WIRL was utilized by PC Magazine to benchmark PC graphics cards. Additionally, high-profile figures such as Microsoft’s Bill Gates and Intel’s Craig Barrett incorporated WIRL demonstrations in keynote presentations to showcase the capabilities of increasingly powerful personal computers.
The release of VRML in November 1994—a standard for interactive 3D content on the Web endorsed by SGI and others—posed a challenge to VREAM’s proprietary VREAMScript language. In response, VREAM integrated support for both VRML and VREAMScript within its software products.
By May 1995, the company had rebranded its VR authoring tool as VRCreator, highlighting its facilitation of "multi-participant VR...across the World Wide Web."
Venture Capital Funding
In November 1995, VREAM obtained $750,000 in venture capital from PLATINUM Venture Partners, highlighting the increasing interest of venture capitalists in software tailored for the Web. Around this period, co-founder Malven left the company to explore other ventures.
Competition
Sense8 Corp., based in Sausalito, California, was VREAM's primary early rival, providing a VR development toolkit designed for personal computers. By March 1995, the virtual reality market had grown to include various authoring tools such as VREAM's VRCreator, Virtus VR, Virtus Walkthrough Pro, and Superscape VRT. Additionally, new competitors emerged like Paper Software (established by Mike McCue), Intervista (founded by Tony Parisi), and Silicon Graphics.
Company Sale
After Paper Software was acquired by Netscape for $20 million in February 1996, VREAM enlisted an investment banking firm to facilitate its own sale. During this timeframe, the company launched an enhanced VRML authoring and browsing package; notably, its VRML browser named WIRL received PC Magazine Editor's Choice recognition in November 1996.
PLATINUM Technology purchased VREAM in November 1996 for $10.3 million, incorporating it as a distinct business unit. As the Web’s popularity increased dramatically, enthusiasm for VR and VRML declined, posing difficulties for numerous virtual reality companies. While under PLATINUM’s ownership, VREAM acquired Intervista along with Silicon Graphics’ VR assets and embedded its virtual reality software into enterprise solutions before the division was ultimately shut down prior to PLATINUM’s acquisition by Computer Associates in 1999. At that point, founders Gaebler and LaHood departed to create BeautyJunglecom, an e-commerce platform specializing in cosmetics.
The shutdown of PLATINUM’s VREAM unit signified a setback for the virtual reality sector following considerable investments throughout the 1990s. Interest in VR remained subdued until Facebook’s $2 billion purchase of Oculus VR revitalized market excitement and spurred renewed entrepreneurial efforts within virtual reality technology.