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Facebook Just Bought Oculus VR

For $2 billion in cash and stock.

No Caption Provided

Here's one you probably didn't see coming.

Facebook announced today that it is acquiring Oculus VR, creators of the still-in-development Oculus Rift VR headset, for $2 billion in cash and shares of Facebook stock. Go ahead, take a moment to process that. Facebook now owns Oculus Rift.

"Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow," Facebook founder and CEO Mark Zuckerberg said in the company's official press 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," said Brendan Iribe, co-founder and CEO of Oculus VR. "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."

The Oculus Rift has been in development since 2012, following a successful Kickstarter campaign that netted the company nearly $2.5 million in funding. The Rift has only been available in dev kit form thus far, with the final consumer model expected to hit the marketplace in late 2014/early 2015. Most recently, the company retained the services of longtime id Software figurehead John Carmack for the role of chief technology officer.

And now Facebook owns Oculus Rift. Facebook. Anyone else having a hard time parsing this one?

Alex Navarro on Google+

767 Comments

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jaqen_hghar

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I love how so many says "Fuck it, not getting it now" because Facebook is involved. No, wait. I think that is fucking stupid. This has changed nothing about my thoughts on OR, still want it badly.

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Giantstalker

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This is too tragic. I'd rather see the goddamn Federal Government handle the Oculus Rift, than Facebook.

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Brackynews

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Edited By Brackynews

@foxmulder said:

All of the naysayers about this are probably the same people who cried wolf when GB went to CBSi.

I think Chicken Little is the more relevant metaphor, but yeah. Don't forget the people who thought Dark Souls 2 would have an easy mode.

Honestly though, outcry magnitude is something all companies use as a yardstick for recalibrating expec... uh, what I mean to say is it matters. Not that getting preemptively angry is good, but seeing the tide of customers turn against what they perceive will happen, feeds back into a company's communication plan. You might think they ignore internet rage like any sane person should, but they really can't.

I have no doubt that this money will make Oculus an amazing product. I have no doubt that Facebook will consider that Microsoft stuck with the Kinect through years of niche belittlement, and now finding its place as something you just have because of course. It takes resolve and vision to pull through the societal adoption phase. Cell phones used to suck. Steam used to suck. Those criticisms were valid, and eventually it either succeeds or it fails.

Aside from Oculus itself, this may have permanent implications for all technology kickstarters. The concept that your backers can set ideological limits on your business model, implies a contract, a no sell-out clause. And it is quite literally selfish and stifling to say "your idea can only reach this level of success because it's my money. I have an ethical stake in your business."

You know what's going to happen? KS projects are going to offer Board of Director tier rewards. Majority Shareholder tier rewards. People are going to see "Don't Be Evil" goodfeel for the sham it is, and want their vote to count even if they have no concept of how a business can be run. Then crowdfunding just becomes a veil for balls out venture capitalism, which is secretly what it's been all along. Fascinating times...

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myghart

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Edited By myghart

@alexgbro said:

that came out of the blue

ROFL!

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Pilzi

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Edited By Pilzi

GOD DAMN IT!

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KaneRobot

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Had next to zero interest in Oculus Rift already, this pretty much ensures my interest will only decrease from here on out.

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Homelessbird

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Man, is no one here excited about the potential of this product with a real revenue stream? Or at least an income, I should say. The initial Kickstart was never enough to bring this product to fruition the way a lot of people want it to be
.

But no, it's all people talking about "muh corporate greed." Well, yeah, Facebook likes money. The fact that Facebook would want to hitch itself to the OR wagon actually speaks volumes about its potential. It's worth mentioning that Candy Crush Saga and its ilk are not actually developed by Facebook, they're just allowed to exist there.

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xplusy

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Early April Fools???

Please?

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Winterstrike

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This is an early April's Fool, right?

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hugh_jazz

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I'm not saying the consumer version of the Rift is necessarily going to be something I don't want, but I'm beginning to think I might need to get a DK2 just in case that ends up happening.

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bigjeffrey

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Edited By bigjeffrey
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zaccheus

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This really sounds like a joke. A bad one.

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deactivated-62f93c42ce57b

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viking_funeral

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Fuck. Fuckity fuck fuck.

I can just see Facebook going after anyone else with anything close in some patent wars bullshit.

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Haruko

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All I mean all interest in the rift is now gone lets see what you got Sony.

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SingingMenstrual

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and I don't see any indication or rational for why they would hinder or prevent game developers in any way.

That's nice, you'll start seeing soon when ridiculous scenarios begin to emerge.

You people are super dramatic.

..is what you're gonna be saying to Facebook once the corporate pettiness ensues.

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Dizzyhippos

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Click here to pay 200 oculus bucks to enable 3d for 24 hours!!!

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Dreamfall31

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All of the naysayers about this are probably the same people who cried wolf when GB went to CBSi.

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Robo

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I'm sure I'm not the only one considering how close this announcement is to April 1st...but this unfortunately looks a wee bit too official. And when you're dealing with announcements of this nature with a publicly traded company you can't really mess around with week-long April Fool's Day jokes.

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probablytuna

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And I thought waking up to the 'Amazon buying Double Helix' news was unexpected.

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SingingMenstrual

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I have two things to say:

1. The nerve on this punk motherfucker who did nothing but create a university social network to get CHICKS, to talk about technology and the way we 'work and play,' as if he's a part of the technology-creative community... He becomes a billionaire making BB guns and then starts talking about creating the future of war.

2.This is how Oculus repay their backers, without whom they'd be looking for jobs and food to dine on? Great.

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Clonedzero

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I never thought the occulus would be bigger than any other niche PC addon. Like track IR or a flightstick.

The whole concept of putting on a big headset and headphones effectively shutting out the entire world is so unappealing to me. It's not how i'd want to experience my games. As an occasional fun little whirl? sure i guess, but normal gaming? Absolutely not.

Honestly the occulus rift tech is more useful outside of gaming than inside. In gaming its a niche little thing, cool but not revolutionary. Outside gaming the tech could be use for tons of various training and educational situations.

I just dont think full headsets like the occulus rift would ever fly in the general public. I mean i wear glasses, i know it works with people who need glasses via various lenses and such, but if i hear something in the next room, i'd have to take off the earphones, take off the visor thing, then put my glasses on, and look in the next room, instead of just looking to my left. Or if i get a text, i had to do this whole process just to glance at it. No one wants that. Sure it's a cool cute idea, but i HIGHLY doubt it'll be all that successful as a mass product to the public.

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SchrodngrsFalco

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This is fucked, but at least there's other good VR tech coming from other companies

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Washburn

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Ok, I've officially lost any interest in Oculus Rift now..That's a shame.

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ripelivejam

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@frobitz said:

Well, this is shitty,

Just sent an email to then asking to cancel my preorder. Was really excited to play around with DK2 but I loathe Facebook and everything it stands for, so yeah...fuck these sell-outs.

Donkey Kong 2? Hell yeah

LOOK UP TO SM00KE UP DAT TROPICAL FREEZZE BRAH

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Brendan

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I just don't get how the PS4 Morpheus can be a competitive product, if it's being run exclusively off the PS4. The biggest selling point of the Oculus is that it uses two 1080p screens, combined with incredibly low latency. That's a very high resolution, and the PS4 will almost certainly not be able provide the same VR experience. Even the Rift is designed for computers with high end single graphics cards 1-2 years from now.

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Sarnecki

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Is this not an early April 1st gag?

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Jennifyre

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Occulus just lost the respect of all those who believed in it. How exactly was this a good idea? Oh right. Money. Good luck Occulus but you'll never get money from me now. I was on your side during the Morpheus reveal and now you've betrayed my trust. What a shame.

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Tomzombie

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selbie

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Facebook is now all up in your grill.

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Blu3V3nom07

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Edited By Blu3V3nom07

Someone "involved in [FB/OR] deal" tells NYT: "FB plans to redesign the Oculus hardware & rebrand it with a FB interface and logo."

— superannuation (@supererogatory) March 26, 2014

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Kee-hee-hee.

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aceofspudz

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Edited By aceofspudz

@nycnewyork said:

@aceofspudz said:

@nycnewyork said:

I hate to break it to people, but the rift could never come to market without being bought. they did not have the resources to set up the manufacturing deals needed to do so. if it was not Facebook, it would have been Google or Microsoft. there would be the same QQing there is now.

Do you have a single fact to back that up?

How the fact that it cost Microsoft and Sony around a billion each using off the shelve hardware to build their systems. they would need at least 50 to 100 million to get manufacturing up to the scale need to release a consumer product at the price they wanted.

So you're suggesting that it would take over a billion dollars to bring the rift to market because it cost that much for another company developing a completely different product, for a completely different market, with a completely different set of goals.

I guess I better tell the people at TrackIR that they should just give up because, see, it's impossible for them to ever bring a consumer electronics product to market for a niche audience without being bought. By a software company.

I hate to break it to you, but you have no idea what you're talking about.

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deactivated-61b64fdbd7632

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I'm OUT

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HappyNapalm

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Edited By HappyNapalm

I understand the hate with facebook but we really dont know the details of the agreement. Carmack & Co could still easily hold full creative control of the Oculus. This is just facebook realizing they're becoming irrelivent and wanting to forge away at something new. Who knows, If Carmack really is in control still then imagine what they could do with 2 billion dollars?

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jonatan

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Edited By jonatan

Hmmmm..... Nope don't get it at all. I think this is called buisness. Still... Wait what?

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radioactivez0r

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You guys are worse than the "Nintendo is doomed" crowd, good lord.

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Rowr

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God fucking dammit.

No good can come of this.

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deactivated-60339640361ae

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AAAAAAAHHHAHAHAAHHAHAHAHAHAHAHAAAAA! HA!

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Capum15

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Edited By Capum15

A flat "What." was my first reaction, but I think I'll stick with a ponderous "Huh..." for now.

Well...good luck to them then?

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JoeyRavn

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Good for Oculus and potentially Facebook, but bad for everyone else. Between this and Sony's shit, I can see the future of VR being thrown down the drain...

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jaronfranklin

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I would not bet my financial future on waiting for Facebook stock to vest. Just ask Myspace about that, SELL NOW

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Scrumdidlyumptious

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FUUUUUUUUUUUCK

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Spiritof

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1. Look up to like this game on Facebook.
2. Look down to open the microtransaction “Facebucks” app.
3. Look to your left to watch the new trailer for Avengers 2!
4. Look right to watch the last of your self-worth as it walks away.

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JamesJeux007

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I... What... I can't... Fuck...

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bybeach

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Edited By bybeach

The Oculus has some more growing up to do. Still, that it made it this far is to me amazing. Facebook(though I do not have an account) might be the money behind making the Oculus happen.

At any rate, I was never anxious to wrap this across my face anyways. If I had a few drinks, something ...but not this. And not a virtual version of something else either. Too wierd. I can see that bizarre sh*t happening, and it does bother me.

But, who knows how the equipment itself will evolve. From what I am reading, they have been substantially improving it. Is this a shallow well, or is there no splash or thud when you toss in a rock? Or maybe one that screams, like in Dark Souls...

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nycnewyork

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@nycnewyork said:

I hate to break it to people, but the rift could never come to market without being bought. they did not have the resources to set up the manufacturing deals needed to do so. if it was not Facebook, it would have been Google or Microsoft. there would be the same QQing there is now.

Do you have a single fact to back that up?

How the fact that it cost Microsoft and Sony around a billion each using off the shelve hardware to build their systems. they would need at least 50 to 100 million to get manufacturing up to the scale need to release a consumer product at the price they wanted.

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ModernAlkemie

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This single comment thread has provided me with an entire year's worth of schadenfreude. Delicious.

It's too bad this was announced after GDC. I would have really liked to know the reactions of developers, especially those excited about developing for the Rift.

I also wonder what the reaction of Facebook stockholders will be to Facebook throwing two billion dollars at what many might see as a piece of novelty PC hardware?