Did Facebook overpay?

[Puppycow]

Investors seem to think so:

Zuckerberg Loses $3 Billion in a Week as Tech Titans Fall

The world’s largest social network plummeted 11 percent after the company announced it would buy virtual-reality firm Oculus VR Inc. for at least $2 billion.

Considering the Market Cap of Facebook is over $150 billion, it seems like a bit of an overreaction unless you think it's going to become a pattern for Facebook to fritter away its money on speculative acquisitions like this which may or may not pan out.

Is Wall Street telling Facebook they're being stupid?

The article does point out that Facebook wasn't the only tech company to lose ground this week: Google and Amazon were also down, and maker of Candy Crush had an underwhelming IPO. So maybe it's not all on this acquisition of the VR company, but probably much of it is.

FWIW, Nintendo tried something like this in the 1990s with out much success.

 

[This is The End]

FWIW, Nintendo tried something like this in the 1990s with out much success.

Oculus Rift is a fully capable 3D TV you can wear freely. And a bit more.

The Virtual Boy was a monochrome vector-style, just passably 3D screen, that you had to have sitting on a table. And a bit less.

 

[Tsukasa Buddha]

All I know is the kickstarterers feel screwed again.

 

[NewtonTrino]

I don't think they overpaid given the circumstances.

BTW I've tried the latest stuff (at Valve) and it's stellar.

 

[Puppycow]

All I know is the kickstarterers feel screwed again.

I sort of get it, but I believe they got exactly what they were promised, didn't they? A T-shirt or a prototype system depending on how much they gave.

 

[Aepervius]

IMHO it is a fad like the other 3D fad. I have tried it or something similar at an expo, and :
1) there is a lot of weight into it, I don't think you would do extended session without having a chair or something to support your neck.
2) it makes as sick as all the other 3D , and I am ready to bet you will have the 10 to 30% folk getting sick to it for short or extended sessions.
3) I doubt it will pick up except as a niche market. It is far too cumbersome in many ways, it feels like the latest 3D gimmick

My gut feeling based on past 3D experience and the above is that it will not reach mass market without very significant progress.

 

[NewtonTrino]

IMHO it is a fad like the other 3D fad. I have tried it or something similar at an expo, and :

It's very important that you've tried the latest stuff. This is either crystal cove/DK2 or the Valve demo. All previous hardware was garbage in comparison. Without trying one of those your opinion really should hold little weight.

My gut feeling based on past 3D experience and the above is that it will not reach mass market without very significant progress.

Again if you haven't tried the latest stuff it's pointless to talk about. The difference is really quite extreme. The new stuff actually works and makes you feel like you've been transported to another place. There are a lot of little tech details that have been worked out over the last year.

 

[The_Animus]

VR is going to be huge and not just for games. If Facebook can capitalize on Oculus's head start in the VR market they will win out big.

VR could be used for:
Games
Vacation/site seeing/relaxation
Porn
PTSD/anxiety/fear treatment
Teaching/Training

The possibilities are massive

 

[paiute]

Wasn't a lot of the purchase in Facebook stock?

 

[geni]

It's very important that you've tried the latest stuff. This is either crystal cove/DK2 or the Valve demo.

I think you underestimate sony.

 

[geni]

I don't think they overpaid given the circumstances.

There are some fairly big risks involved.
Firstly VR could well end up as a niche producted. Limited to a subset of gamers who want that experience and have the time to use it.

Secondly it appears there is a lot of dislike of facebook in the VR early adopter mob.

Thirdly there is a fair risk of other players entering the market. Sony have already made some moves, Microsoft could, and in the area of brand loyalty facebook Oculus Rift would have a hard time against Valve VR.