Can Facebook Inc Grow Oculus to Critical Mass?

Facebook  (NASDAQ: FB  ) recently acquired Oculus VR for a hefty $2 billion, which turned some heads since the two companies seemingly have little in common. Facebook clearly hopes that Oculus will become a broader platform, and as such Oculus now envisions a future where its virtual reality platform extends beyond just gaming. Oculus VR CEO Brendan Iribe recently discussed the deal at TechCrunch Disrupt, and says that Oculus could reach 1 billion users in the future. Iribe also notes that the deal sparked considerable interest among bigger developers who are now interested in developing content for Oculus Rift.

In comparison, Facebook's WhatsApp deal cost almost ten times as much and Facebook also expects WhatsApp to reach 1 billion users in the near future. In fairness, WhatsApp is already halfway there, while Oculus is starting from scratch as its product has yet to officially ship. How realistic is it for a seventh of the world's population to adopt virtual reality technology?

In this segment of Tech Teardown, Erin Kennedy discusses Oculus VR's ambitious hopes with Evan Niu, CFA, our tech and telecom bureau chief.

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  • Report this Comment On May 07, 2014, at 11:01 AM, Stymie67 wrote:

    I am a huge fan of the POTENTIAL of OR, not particularly as a gamer (which I am not) but for the various cool VR applications that can be used. The OR need a platform for mass marketing and adoption, and they have it with FB. Couldn't be happier with FB buying them (as a FB owner as well as INVN which is a supplier for the OR).

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