Facebook’s Acquistion of Oculus VR: What We Think

Facebook announced that it has purchased Oculus VR, the leader in immersive virtual reality technology (though Sony just unveiled a similar system, and there’s rumors Microsoft also has one in development), for a total of approximately $2 billion dollars. Yes, billion. With a ‘b.’

Facebook hopes that the virtual reality technology, while currently only really developed for gaming use, will fulfill it’s potential to be the next social and communications platform, with strong possible uses in communications, media, entertainment and education.

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

At a press conference held this afternoon, Zuckerberg, David Ebersman, CFO of Facebook, and Brandon Iribe, CEO and Co-Founder of Oculus VR, answered questions about this bold and unexpected move–a “long-term bet,” as Zuckerberg described it, expecting it to be five to ten years before virtual reality becomes a solid communication option.

“Gaming is just the start,” the founder of Facebook enthused, “…it’s about building the next major computing platform….Today, we’re sharing moments, tomorrow we’re sharing experiences.”

“We’re building a whole new world,” Iribe said. “and changing communication platforms…[it’s] a perfect foundation for collaboration.”

This isn’t Facebook’s first major purchase this year–it’s purchase of WhatsApp last month astounded tech and financial quarters. Concerns about a second extremely large purchase were touched on, but Zuckerberg and Ebersman remained confident in the new technology and its potential.

Oculus VR produces the Oculus Rift virtual reality headset, which currently is available to developers only (75,000 kits have been ordered). I had the chance to experience Oculus Rift at GDC last week (playing Eve: Valkyrie) and, while I went in skeptical, the 15 minute demo was pretty mind-blowing (arguably Oculus was putting it’s best foot forward, but wouldn’t you?). Zero latency, even with quick head movements to the left and right, no weird-blurring of vision, or doubling (like bad 3D glasses)–in fact, despite playing a space shooter (which I just fail at) in front of 100 or so people in line, within moments I was completely sucked into the virtual game. It was dangerously inviting.

So, what does Facebook’s buyout mean for us, the gamers? While Facebook is more interested in the long-term potentiality of virtual reality as the next major computing platform than it is in Oculus Rift’s current use as a gaming tool. That’s not to say anything could happen (virtual Farmville, anyone?), Minecraft’s designer Markus “Notch” Preston has already  cancelled the deal which would have brought Oculus Rift capability to Minecraft, because, said Preston on his twitter “Facebook creeps me out.”

Preston went on to explain his reasoning in a blog post:

“Facebook is not a company of grass-roots tech enthusiasts. Facebook is not a game tech company. Facebook has a history of caring about building user numbers, and nothing but building user numbers. …And I did not chip in ten grand to seed a first investment round to build value for a Facebook acquisition.”

Whether this just the first in a series of cancellations, or just a one-off remains to be seen.  Considering there’s 75,000 dev kits on order, and numerous developers already working on VR-compatible games, an industry-wide distancing from Oculus seems unlikely at best.

What do you think? Have you had a chance to try VR tech yet? Do you think Facebook has gone too far? Are you excited to see what they’ll do with this tech? Let us know in the comments!