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Oculus could cost Facebook up to $11 billion, but it might be worth it

Jan 19, 2017
in News
Reading Time: 2 mins read
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The Oculus Rift is still prohibitively expensive for most consumers.

HTC’s Vive costs $800 and still requires a powerful PC, while Sony’s PSVR costs $400 and only works with that company’s PlayStation 4 console. Sure, gaming enthusiasts might not have a problem spending that kind of cash on a top-notch gaming experience, but none of these headsets is quite there yet. There’s no “killer app” for high-end VR systems.

The most successful headsets, so far at least, have been Samsung’s Gear VR, which costs $100 plus the price of a compatible Samsung smartphone, and Google’s Cardboard, which costs $15 in addition to the cost of a smartphone.

Zuckerberg’s big bet

Zuckerberg is obviously keenly aware of the importance of mobile platforms — the majority of Facebook’s traffic comes from mobile users and that will only continue to grow. Which is why Facebook split Oculus into two divisions, one primarily focused on PC-style VR and the other focused on mobile VR.

The hope is that Facebook and Oculus will be able to create a system impressive enough for all consumers to want to use. How long will it take for the company to get there? If Zuckerberg’s prediction on the stand holds up, it could take anywhere from 5 to 10 years.

Still, Oculus will be in an enviable position if Zuckerberg’s prognostications prove correct. That’s because the Facebook CEO sees gaming as just the tip of the VR iceberg. In its ultimate form, Zuckerberg sees virtual reality as a means to share experiences with others in real time and feel as though you’re actually there.

In a July interview with Bloomberg, Zuckerberg explained how virtual reality is the natural progression from sharing experiences via video, just as video was the natural progression of sharing experiences via photos. VR, then, will almost literally allow us to stand in another person’s shoes as they explore the world.

And with Facebook’s enormous audience — it has roughly 1.8 billion monthly active users, already sharing everything from selfies to wedding videos — the social network is just about the only company that can help push VR forward as a means to connect the masses. If that all works out, and Facebook becomes the VR company just as it is the social network, the billions Zuckerberg spent on Oculus will surely have been worth it.

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