The fantasy land of Nostos, an open-world multiplayer VR game. [Photo provided to China Daily]

According to SIF director, 34-year-old Lou Yanxin, the festival aims to become a hub of innovation and creativity for the extended reality industry, providing new opportunities for talent in Asia.

Lou believes that the audience attending this year's event felt more immersed when watching VR films because the technology has improved immensely in the past year.

"More interactions were possible in this year's screened VR films, such as using the hand shank, sound and eye tracking to interact with the characters in the films," says Lou.

Lou hopes to bridge the gap between content producers and technicians. "Some storytellers have creative ideas, but they don't know how to realize them. On the other hand, when a technician figures out a new interaction method, he or she doesn't have a proper story to present it."

Lou says he believes VR has huge potential as people, regardless of national boundaries, have the need to be emotionally attached with stories.

Funding, as in so many spheres, is a problem facing both domestic and international VR professionals, he says. Consequently, a project-pitching event at SIF sought to attract investment for new projects and ideas.