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Facebook acquires Oculus VR for $2 billion

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  • Facebook acquires Oculus VR for $2 billion

    By Jeffrey Grubb



    Connect with leaders from the companies in this story, in real life: Come to the fourth annual VentureBeat Mobile Summit April 14-15 in Sausalito, Calif. Request an invitation.

    Facebook owns your digital social life. Now it’s getting into your simulated life as well.

    The social network has just announced that it has acquired Oculus VR, makers of the upcoming Oculus Rift head-mounted virtual-reality display, for $2 billion. That includes $400 million in cash as well as 23.1 million shares in Facebook stock with a current value of $1.6 billion.

    The Oculus Rift is one of the most high-profile devices for accomplishing virtual-reality vision. Players strap the device to their heads, and all they can see is the Rift’s 3D display. The unit then tracks the players motion and orientation to render a virtual world. It is compatible with PC and anyone can make and release software for it.

    While Oculus VR is working on a headset, it also plans to work on solving VR technology for touch and smell as well.

    “Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,” Facebook founder Mark Zuckerberg said in a statement. “Oculus has the chance to create the most social platform ever and change the way we work, play, and communicate.”

    “We are excited to work with Mark and the Facebook team to deliver the very best virtual reality platform in the world,” Oculus VR cofounder Brendan Iribe said. “We believe virtual reality will be heavily defined by social experiences that connect people in magical, new ways. It is a transformative and disruptive technology that enables the world to experience the impossible, and it’s only just the beginning.”

    Oculus will continue working toward a commercial release of its hardware through its California-based headquarters.

    In a post on his Facebook page, Zuckerberg explained that Facebook’s mission is expanding. While the company has focused recently on building apps for mobile, it wants to start looking to platforms beyond smartphones and tablets.

    “We have a lot more to do on mobile, but at this point we feel we’re in a position where we can start focusing on what platforms will come next to enable even more useful, entertaining, and personal experiences,” wrote Zuckerberg. “This is where Oculus comes in.”

    Oculus Rift started as a personal project of Iribe and Oculus VR cofounder Palmer Luckey. In 2012, the company took the device to Kickstarter to raise $250,000 from fans interested in crowdfunding. Excited by the prospect of working virtual reality, gamers ended up contributing more than $2.4 million.

    Oculus has since sent out thousands of its early development-kit version of the Rift, and studios are already working on games. This kit has a relatively low-resolution screen and is missing some of the motion-tracking that the final unit will perform.

    One of the earliest confirmed games is a space-flight sim titled Eve: Valkyrie. It puts players in the cockpit of fighter jet. When a virtual pilot looks up out of their ship’s viewport, they can really see everything around them. Here’s an early trailer that shows off some gameplay from Eve: Valkyrie in action:



    During the recent Game Developers Conference in San Francisco last week, Oculus introduced a revised version of its development kit that it has started selling for $350.

    Also at GDC, PlayStation maker Sony announced its own virtual-reality helmet called Project Morpheus that it will work with the company’s PS4 console.

    Markus “Notch” Persson, whose sandbox game Minecraft is a phenomenon on both PC, mobile, and home console platforms, said today in a blog post today that “virtual reality is going to change the world.” But he wasn’t happy about Facebook acquiring a company he backed when it was seeking seed funding.

    “I definitely want to be a part of VR, but I will not work with Facebook. Their motives are too unclear and shifting, and they haven’t historically been a stable platform,” Notch wrote. There’s nothing about their history that makes me trust them, and that makes them seem creepy to me.”

    And I did not chip in ten grand to seed a first investment round to build value for a Facebook acquisition.” [Emphasis is Notch's. --Ed.]

    Oculus is the latest in a string of acquisitions for Facebook. In February, Zuckerberg’s company acquired the chat program WhatsApp. Last year, the company picked up photo-sharing software Instagram.
    The Hackmaster

  • #2
    The Internet thinks Facebook just killed the Oculus Rift

    By Joel Hruska

    As announcements go, this one hit everybody way out of left field. From the halls of GTC to the echoing environs of Reddit, when Facebook excitedly announced that it had purchased Oculus VR — the manufacturers behind the much-desired Oculus Rift — the collective internet was dazzled with a brief moment of total WTF. A few hopefuls tentatively theorized that it might have been an early April Fool’s joke.

    When it became clear that it wasn’t, the collective internet generally lost its mind. Reddit’s comments were… well, Redditish, but they weren’t alone. Notch promptly cancelled his plans to bring Minecraft to the Rift. The comments aimed at Parker Luckey have been absolutely vitriolic. And among all the rage, some very genuine concerns and valuable perceptions have just been aired. (Read: Oculus Rift DK2 goes on sale for $350, features low-latency 1080p displays, more polished appearance.)

    First, there’s this: If Mark Zuckerberg labored under the illusion that his company was trusted or seen, in any way, as having its finger on the future of gaming, those illusions should be shattered. Those of us who have been gaming since the 80286 was a hot ticket have generally watched the growth of Flash-based Facebook games with a mixture of skepticism and dismissal. Companies like Zynga may have gotten rich off Facebook engagement, but the kinds of games on Facebook are exactly what hardcore gamers and the Rift’s target audience don’t want.

    Second, there’s the fact that many of us resent — deeply — having been turned into commoditized products. People may use Facebook, but that doesn’t automatically mean they like it. Zuckerberg has built a reputation for ignoring privacy, changing features on a whim, and relentlessly searching for more aspects of users’ lives that he can crunch into monetized kibble.


    The Oculus Rift DK2 will sport low-persistence displays, which will reduce the nausea-inducing motion blur produced by fast-paced games

    The Snowden leaks and blowback over the always-on Kinect 2.0 should have been a sign to Zuckerberg that his company’s intrusion into the living room via 3D headsets isn’t welcome.

    There is no way Facebook’s entry into this space would be taken as anything but a cynical attempt to grab more user data, because that’s the reputation Facebook has built for itself. Meanwhile, Zuck’s utterly tone-deaf monologue about buying Oculus Rift because it was the future of social networking couldn’t have sounded worse to people who bought into Rift because it was the future of gaming.

    “Oculus has the chance to create the most social platform ever,” Zuckerberg said, “and change the way we work, play and communicate.”

    Newsflash, Zucky. Nobody bought a Rift because they want to be part of your social network. Nobody. And so, when you decide to hype your purchase by talking about features that literally nobody wants or paid for, it’s not surprising that people get a little cranky about the whole thing. The solution to this is to reaffirm your fundamental commitment to the original mission the Oculus Rift set out to achieve, talk about your plans for getting that project off the ground, emphasize that no, you won’t be using the Rift to tie people to Facebook, push Facebook, integrate Facebook, or attempting, in any way, to make anyone use Facebook.

    The broader context


    Consumers are generally pretty wary of having some kind of always-on, corporately-controlled gadget in the living room.

    I think the explosion of fury over Oculus is actually more interesting than just some angry nerds because it reveals how deep the distrust goes between the corporations that monetize data and their customer bases. We live in an age when research has proven that most “anonymous” data isn’t anonymous at all. We’re tracked when we step outside, we’re tracked online.

    Microsoft’s Kinect plans for the original Xbox One raised serious privacy issues in the wake of the Snowden revelations precisely because it made people ask if Microsoft was even in control of its own technology. When the NSA is willing to hack private data links between Google and Yahoo servers, there’s no guarantee that Facebook’s data will stay private, no matter what the company says.

    Pushing John Carmack to step up and make some comments about the state of the Oculus Rift would help, because Carmack is a voice that hardcore gamers trust, but I don’t think anyone is going to trust this technology in Zuckerberg’s hands, no matter what he says. Facebook is a company with the motto “Move fast and break things.” It has a history of dictating changes to its users and customers. It doesn’t have a stellar reputation for feedback or strong user engagement, unless “We pretend to listen, then do it anyway” actually counts as a feedback strategy.

    It may not be the wrong company to launch a peripheral like the Rift, but it sure as hell looks like it. If the company continues to make grand promises of social engagement as opposed to focusing on the game-centric strategy that the Oculus’ existing sponsors actually want, the result could be the fastest plunge from hero to unwanted garbage in product history.
    The Hackmaster

    Comment


    • #3
      Your guide to Oculus Internet arguments

      Do you think Facebook's Oculus VR buy is good news or not? Leigh Alexander presents the arguments for and against, so you can have an arsenal to use when you're arguing prematurely on the Internet.
      The Hackmaster

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