Facebook buys virtual reality headset firm Oculus for $2bn as Mark Zuckerberg promises to 'change the way we communicate'
Facebook has bought a virtual reality headset firm in an unexpected deal $2bn deal that puts it in a head on battle with Sony.
The social network announced that it has reached a definitive agreement to acquire Oculus VR, a California firm founded by 21 year old college dropout Palmer Luckey that is developing leading VR headset.
'Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow,' said Facebook founder and CEO, Mark Zuckerberg.
The future of Facebook? The Oculus Rift headset in action. Facebook today bought the firm for $2bn
IS IT ANY GOOD?
MailOnline was able to try Oculus Rift at the CES show in Las Vegas earlier this year.
At first we were skeptical - the headset looks bulky, although it is surprisingly light when attached via straps.
However, once our demo started, doubts were quickly forgotten.
The technology, still just a developer's version, is breathtakingly good.
While the resolution still doesn't give the feeling of quite being in the real world, it does make you think you are actually in a virtual world.
During several demonstrations we entered a vast dungeon and flew through space, with head tracking meaning the images moved perfectly as the user's head moves.
It's not quite ready for primetime yet, but is almost there - and the Oculus Rift headset finally delivers on the long awaited promise of virtual reality.
'It's different from anything I've every experienced in my life,' said Zuckerberg.
The firm is among the most advanced in the VR field, and recently began taking orders for the latest version of its $350 developers version.
'Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate,' said Zuckerberg.
'Immersive gaming will be the first, and Oculus already has big plans here that won't be changing and we hope to accelerate.
'The Rift is highly anticipated by the gaming community, and there's a lot of interest from developers in building for this platform.
'We're going to focus on helping Oculus build out their product and develop partnerships to support more games.
'Oculus will continue operating independently within Facebook to achieve this.
'But this is just the start.
'After games, we're going to make Oculus a platform for many other experiences.
'Imagine enjoying a court side seat at a game, studying in a classroom of students and teachers all over the world or consulting with a doctor face-to-face - just by putting on goggles in your home.'
The $2bn deal includes $400 million in cash and 23.1 million shares of Facebook common stock.
'Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate,' said Mark Zuckerberg.
Oculus is the leader in immersive virtual reality technology and has already built strong interest among developers, having received more than 75,000 orders for development kits for the company's virtual reality headset, the Oculus Rift.
Facebook said 'While the applications for virtual reality technology beyond gaming are in their nascent stages, several industries are already experimenting with the technology, and Facebook plans to extend Oculus' existing advantage in gaming to new verticals, including communications, media and entertainment, education and other areas.'
'The Matrix - that's always been the dream,' said one Oculus Rift executive of its headset, pictured.
The rprotype is packed with components - many of which Mark Zuckerberg claims can be found in a mobile phone, making the gadget relatively easy to produce
'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.
THE FIRM FOUNDED BY A 15 YEAR OLD
Palmer Luckey of Oculus
21-year-old Palmer Luckey began Oculus when he was just 15, working on prototypes in his parent's garage.
He started developing his own head-mounted VR displays when he was still in high school, and was in college when he created the first prototype of a consumer-priced VR headset called the Oculus Rift - although he eventually left to work on the project full time.
MailOnline met Luckey at the CES show in Las Vegas, where he showed an incredible amount of enthusiasm for the product.
He said he believed the technology's time had come.
The firm originally turned to Kickstarter to raise money, but has since raised funds from investors across silicon Valley - until it was today bought by Facebook for $2bn.
'It is a transformative and disruptive technology, that enables the world to experience the impossible, and it's only just the beginning.'
Oculus recently raised $75m to make the headset.
recently raised $75m to make its product mainstream.
'Over the past 16 months, we’ve grown from a startup to a company whose technology is poised to change the way we play, work and communicate,' said Brendan Iribe, CEO of Oculus VR at the time.
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