Slashdot Mirror
Did Facebook Buy Oculus To Counter Google Glass?
Nerval's Lobster (2598977) writes "In a statement soon after Facebook announced the acquisition of Oculus Rift, CEO Mark Zuckerberg suggested that the bulky Oculus headset had the potential to transform VR into the "most social platform ever." Whatever his reasons for shelling out $2 billion for the company, it's clear that Facebook is now a player in the augmented-reality space, which Google is also exploring in its own way. Yes, Google Glass serves a different function—overlaying maps and text over the wearer's view of the real world, rather than immersing people in a virtual environment—but the potential customer base for both devices is basically the same, and now Google has some real competition if it wants to transform Glass into some sort of gaming device. And despite some blowback from Markus Persson, it's likely that developers will continue to explore Oculus as a gaming platform, Facebook or no. Zuckerberg might be talking a good game about virtual realities far into the future (does he have to pay to promote his own posts on Facebook? Joke.), but this acquisition was likely a short-term play, as well."
Virtual reality games and augmented reality tools, in spite of both using your eyes, are so far apart in functionality, that if this were the explanation, the shareholders would be justified in a lynching.
The use cases for google glass (overlaying information ontop of really - i.e. augmented reality) and Oculus Rift (a VR display that supplants and replaces your view with a different view - i.e. virtual reality) are entirely different. That would be like buying a car manufacturer to help catch up with SpaceX in building heavy launch vehicles - yeah, both are things you catch a ride in - but the technology that powers them doesn't cross pollinate.
Everyone who uses Facebook seems to be in their own little self-centered world anyway. That's why they bought Oculus. It simply matches.
No, Facebook bought Oculus because they are sitting on a pile of cash, and no good strategy for making profits. Facebook is not Google (which has a massive short term revenue stream), and it has no long term strategy for making social pay out the big bucks. Facebook also does not have the engineering talent to follow Googles "try everything" strategy, so Facebook is trying desperately to buy revenue diversity instead of creating it for themselves. Ultimately this is a loosing strategy, and a sign of weak / stupid management with very poor planning skills.
Buying Whatsapp was a gamble on that companies ability to monetize an otherwise non-revenue generating user base. Oculus likewise has no proven user base. For an established company like Microsoft or Google, this kind of acquisition makes sense, since they can eat the loss if the investment goes sour (they usually do). Facebook cannot afford to have any of these mega deals go bad. They simply do not have the revenue stream and they can never again go IPO and raise another pile of cash. So instead of sitting on the cash, and waiting for a strong investment opportunity, they are squandering the money like kids in a store. It is hauntingly reminiscent of the dot-com boom, and likely will end the same way.
I wish I had a good sig, but all the good ones are copyrighted