Thursday, March 27, 2014

What would you do with your $2,000,000,000.00? Facebook buys Oculus VR



CC imaged use from Wikipedia.com
This past Tuesday Facebook agreed to by the tech startup Oculus VR for two billion dollars.  While this seems like a lot of money it's just a drop in the bucket for Facebook.  However this brings up some interesting points.  Oculus VR started as a Kickstarter campaign. Now many of you may not heard of Ocuus VR at all and even fewer of you have actually used the product Oculus Rift.  However I was lucky enough to slip one on at one of the tech conferences that I have attended.  Now let me tell you it is a pretty amazing technology  with the potential to do some amazing things, but there are some draw backs.  For instance some people have said that using it made them motion sick, but I did not experience that sensation.  What I can say about the technology is that Oculus Rift is that it's big and it's slightly uncomfortable to wear on your head.  The version that I was using was easy to tell it wasn't ready to be a full-time gadget to use everyday. This is not to say that the device you didn't hold a lot of promise.   I think it's been one of the more innovative products that have come out over the past few years, however there's been a lot of hype surrounding it for the past couple years more hype than I think it has deserves.  

So now why did Facebook decide to buy this company for $2 billion.  I feel that it is all about trying to anticipate the next big trend in technology.  The thought is that wearable technology is the next big thing.  You already see wearable tech all around you.  It started with those very stylish bluetooth earpieces. Lately its been smart watches and those fitness trackers that everyone is wearing. The problem with that is that you need a phone a laptop to send the data too.  This is an area where most people think consumer tech is heading and they are really predicting a lot of future growth.  I agree  and especially with with Sony is coming out with their own virtual-reality device this area will grow.  

Facebook felt that it  would be left behind and the easiest way they can get into the game was by purchasing the company at the forefront.  Considering they just bought WhatsApp for 19 billion dollars I guess you could say they got it for relatively cheap.  I love the fact that the bought Oculus weeks after Sony announced their VR headset.  Nothing helps consumers more than competition, especially in the gaming world.  Nintendo didn't have to improve until Sega began competing with them.  The when sony came out with playstation, they had to innovate again.  We will have better products sooner, the more competition there is.    

Now this story takes an interesting twist because Oculus VR, specifically the Oculus Rift started as a Kickstarter campaign (that raised over 2 million dollars) a lot of people who contributed money are hurt and the feel that they sold out.  Now I may think they wish they were getting some of the 2 billion dollars, and I don't think any of them would have passed on the offer.  There are no promise that Kickstarter projects will not get bought out and as a tech company, I think they should have expected it.  Tech companies get bought out all the time.  I think some people make their companies just to be bought out by a bigger consumer like Facebook.  

So where does this all leave Oculus VR?   Oculus started as a gaming company and there's a lot of concern they will no longer be a gaming company because of Facebook.  I'm not convinced, because part of the appeal of Facebook is their social games like Farmville and more lately Candy Crush.  But I think they realize that social sites do not stay popular for long, so they have to innovate.  Jus think about the last time you used Myspace.  I would guess that besides showing you pictures of what your friends are doing, you are able to virtually join them. Is this is what's going to happen? I don't know  and know does yet.  I think the technology isn't there yet but it's getting closer and Facebook wants to be at the lead.   I think over the next year we are going to see a lot more smart devices.  Whether or not that is wearable technology, home automation systems, or what.  As we talked about IFTTT, with the right Wifi light bulbs you can have them turn on as soon as you check in at your house on Foursquared.  I mean it is amazing to think about what you're able to do with that little computer you keep in your pocket called a phone.  
CC imaged use from sergesegal on Flickr



A technology like Oculus would be wonderful for schools to use to explore other areas with virtual field trips.  They already have some wonderful virtual field trips online where it gives you 360° views kind of like Google Street View, but to be able to experience that in a world that is similar to a 3-D environment would be amazing. Those upcoming opportunities for these kids that don't have them access to travel will changed how education is experienced.  Now cost will always be a factor but we need to keep an eye on how this is going to revolutionize how we experience and use technology.

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