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Facebook has bought several virtual reality game studios over the past couple of years, and they added one more to their portfolio Friday with the acquisition of Seattle-based BigBox VR.
The studio’s major title, “Population: One,” was one of the big post-launch releases for Facebook’s Oculus Quest 2 headset and is a pretty direct Fortnite clone, copying a number of key gameplay techniques while adapting them for the movements unique to virtual reality and bringing in their own lore and art style.
As has been the case for most of these studio acquisitions, terms weren’t disclosed. BigBox raised $6.5 million according to Crunchbase, with funding from Shasta Ventures, Outpost Capital, Pioneer Square Labs and GSR Ventures.
“POP: ONE stormed onto the VR scene just nine months ago and has consistently ranked as one the top-performing titles on the Oculus platform, bringing together up to 24 people at a time to connect, play, and compete in a virtual world,” Facebook’s Mike Verdu wrote in a blog post.
It’s not unusual for a gaming hardware platform owner to build up their own web of studios building platform exclusives, but in the VR world things are a little different, given that Facebook has few real competitors.
While many of the developers inside Oculus Studios continue to build titles for Valve’s Steam store, which are accessible with third-party headsets, most non-Facebook VR platforms seem to be a shrinking piece of the overall VR pie, having been priced out of the market by Facebook’s aggressive pursuit of a mass market audience. Facebook’s Oculus Quest 2 retails for $299 and the company has said that it outsold all of its previous devices combined in its first few months.
In April, Facebook acquired Downpour Interactive, maker of the VR shooter “Onward.”
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For all of the investors preaching that augmented reality technology will likely be the successor to the modern smartphone, today, most venture capitalists are still quite wary to back AR plays.
The reasons are plentiful, but all tend to circle around the idea that it’s too early for software and too expensive to try to take on Apple or Facebook on the hardware front.
Meanwhile, few spaces were frothier in 2016 than virtual reality, but most VCs who gambled on VR following Facebook’s Oculus acquisition failed to strike it rich. In 2020, VR did not get the shelter-in-place usage bump many had hoped for largely due to supply chain issues at Facebook, but VCs hope their new cheaper device will spell good things for the startup ecosystem.
To get a better sense of how VCs are looking at augmented reality and virtual reality in 2020, I reached out to a handful of investors who are keeping a close watch on the industry:
Some investors who are bullish on AR have opted to focus on virtual reality for now, believing that there’s a good amount of crossover between AR and VR software, and that they can make safer bets on VR startups today that will be able to take advantage of AR hardware when it’s introduced.
“Besides Pokémon Go I don’t think we have seen the engagement numbers needed for AR,” Boost VC investor Brayton Williams tells TechCrunch. “We believe VR is still the largest long-term opportunity of the two. AR complements the real world, VR creates endless new worlds.”
Most of the investors I got in contact with were still fairly active in the AR/VR world, but many still disagreed whether the time was right for VR startups. For Jacob Mullins of Shasta Ventures, “It’s still early, but it’s no longer too early.” While Gigi Levy-Weiss of NFX says that the market is “sadly not happening yet,” Facebook’s Quest headsets have shown promise.
On the hardware side, the ghost of Magic Leap’s formerly hyped glory still looms large. Few investors are interested in making a hardware play in the AR/VR world, noting that startups don’t have the resources to compete with Facebook or Microsoft on a large-scale rollout. “Hardware is so capital intensive and this entire industry is dependent on the big players continuing to invest in hardware innovation,” General Catalyst’s Niko Bonatsos tells us.
Even those that are still bullish on startups making hardware plays for more niche audiences acknowledge that life had gotten harder for ambitious founders in these spaces, “the spectacular flare-outs do make it harder for companies to raise large amounts with long product release horizons,” investor Tipatat Chennavasin notes.
Responses have been edited for length and clarity.
What are your general impressions on the health of the AR/VR market today?
We’re seeing some progress in VR and some of that is happening because of the Oculus ecosystem. They continue to improve the hardware and have a growing catalog of content. I think their onboarding and consumption experience is very consumer-friendly and that’s going to continue to help with adoption. On the consumer side, we’re seeing some companies across gaming, fitness and productivity that are earning and retaining their audiences at a respectable rate. That wasn’t happening even a year ago so it may be partially a COVID lift but habits are forming.
The VR bets of several years ago have largely struggled to pan out, if you were to make a startup investment in this space today what would you need to see?
Companies to watch are the ones that are creating cool experiences with mobile as the first entry point. Wave VR, Rec Room, VRChat are making it really easy for consumers to get a taste of VR with devices they already own. They’re not treating VR as just another gaming peripheral but as a way to create very cool, often celebrity-driven, content. These are the kinds of innovations that makes me optimistic about the VR category in general.
Most investors I chat with seem to be long-term bullish on AR, but are reticent to invest in an explicitly AR-focused startup today. What do you want to see before you make a play here?
In both AR/VR, a founder needs to be both super ambitious but patient. They’ll need to be flexible in thinking and open to pivoting a few times along the way. Product-market fit is always important but I want to see that they have a plan for customer retention. Fun to try is great, habit-forming is much better. Gaming continues to do pretty well as a category for VC dollars but it’d be interesting to see more founders look at making IRL sports experiences more immersive or figuring out how to enhance remote meeting experiences with VR to fix Zoom fatigue.
There have been a few spectacular flare-outs when it comes to AR/VR hardware investments, is there still a startup opportunity in AR/VR hardware?
Hardware is so capital intensive and this entire industry is dependent on the big players continuing to invest in hardware innovation. Facebook and Microsoft seem to be the main companies willing to spend here while others have backed away. If we expand our thinking for a minute, maybe the first real mainstream breakthrough AR/VR consumer experience isn’t visual. For VR, it might be the mobile experiences. For AR maybe AirPods or AirPod-like devices are the right entry point for consumers. They’re in millions of people’s ears already and who doesn’t want their own special-agent-like earpiece? That’s where founders might find some opportunity.
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Thirdverse, the virtual reality game developer behind “Swords of Gargantua,” has raised $8.5 million in Series A funding. The round was led by JAFCO, with participation from Presence Capital, Sisu Ventures and Incubate Fund, and will be used for hiring, co-founder Masaru Ohnogi told TechCrunch.
Based in Tokyo, Thirdverse was started four years ago as Yomuneco, but relaunched as Thirdverse in June to align with its corporate mission of creating a “Third Place inside the Metaverse,” where “each person has choices in his or her own hands and can live whatever life he or she wants to.” The company is currently focused on multiplayer virtual reality games, but its ultimate goal is to combine virtual reality with blockchain technology to create “VR worlds” where people can create online communities.
The concept has taken on a new relevancy, as COVID-19-related stay-at-home orders prompted organizations to bring online gatherings, including conferences, concerts and even their offices.
Users have also spent more time playing online games during the pandemic, with titles that have a social element, like “Animal Crossing: New Horizons,” proving especially popular.
“Our sales and active users started increasing in late March as people started spending more time at home,” said Ohnogi. “And this increased engagement has remained consistent, even as some communities have lifted stay-at-home orders.”
Most of Thirdverse’s current users are located in America, and Ohnogi said many of them use Oculus Quest headsets. During Facebook’s href=”https://techcrunch.com/2020/09/16/facebook-is-officially-killing-off-the-oculus-rift-line/”> virtual reality conference last month (which itself was held virtually), the tech giant announced it would release its new Oculus Quest 2 in Japan this month. Ohnogi said this is a big opportunity for Thirdverse because many Japanese people will see the new headsets in retail stores. “As one of the earliest leading VR companies in Japan, we’ve already seen a huge number of traction. We are really excited about it.”
Thirdverse is currently preparing to release other virtual reality games, including “Frostpoint VR: Proving Grounds,” a multi-player shooter game that will be available later this year for Oculus Rift, HTC Vive VR and Valve Index headsets.
In a statement, Sisu Ventures and Presence Capital founding partner Paul Bragiel said, “In the rapidly growing VR gaming landscape, Thirdverse stands out as having strong leadership, deep relationships and a big vision to become the category leader in this market.”
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Facebook is aiming to build on its VR hardware launches of 2019 with an investment in virtual reality software.
Facebook announced today that it has acquired Bay Area VR studio Sanzaru Games, the developer of “Asgard’s Wrath,” considered by many enthusiasts to be one of the Oculus Rift’s best games. Terms of the deal weren’t disclosed, but the studio will continue to operate its offices in the U.S. and Canada with “the vast majority” of employees coming aboard following the acquisition, Facebook says.
The 13-year-old game studio has created a total of four titles for the Oculus Rift, including “Asgard’s Wrath” and “Marvel Powers United VR,” both of which were at least partially funded by Oculus Studios. Sanzaru has also made a number of titles on console and mobile systems, releasing games structured around their own IP alongside licensed titles for properties like Sonic and Spyro.
Following Facebook’s acquisition of Beat Games in November, the Sanzaru Games purchase showcases Facebook’s continued interest in propping up VR game studios and aligning them around their interests while allowing them to operate independently. While Beat Games’ “Beat Saber” was considered a more mass market title, Sanzaru’s “Asgard’s Wrath” represented a play toward courting serious gamers with a lengthier first-person adventure title.
Facebook has already injected billions of dollars into its VR ambitions and, as the company hopes to build out the content ecosystems of hardware it released last year (including the Oculus Quest and Oculus Rift S), there is little to suggest that their rate of investment will slow in the near future.
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Extra Crunch offers members the opportunity to tune into conference calls led and moderated by the TechCrunch writers you read every day. This week, TechCrunch’s Josh Constine and Frederic Lardinois discuss major announcements that came out of Facebook’s F8 conference and dig into how Facebook is trying to redefine itself for the future.
Though touted as a developer-focused conference, Facebook spent much of F8 discussing privacy upgrades, how the company is improving its social impact, and a series of new initiatives on the consumer and enterprise side. Josh and Frederic discuss which announcements seem to make the most strategic sense, and which may create attractive (or unattractive) opportunities for new startups and investment.
“This F8 was aspirational for Facebook. Instead of being about what Facebook is, and accelerating the growth of it, this F8 was about Facebook, and what Facebook wants to be in the future.
That’s not the newsfeed, that’s not pages, that’s not profiles. That’s marketplace, that’s Watch, that’s Groups. With that change, Facebook is finally going to start to decouple itself from the products that have dragged down its brand over the last few years through a series of nonstop scandals.”
(Photo by Justin Sullivan/Getty Images)
Josh and Frederic dive deeper into Facebook’s plans around its redesign, Messenger, Dating, Marketplace, WhatsApp, VR, smart home hardware and more. The two also dig into the biggest news, or lack thereof, on the developer side, including Facebook’s Ax and BoTorch initiatives.
For access to the full transcription and the call audio, and for the opportunity to participate in future conference calls, become a member of Extra Crunch. Learn more and try it for free.
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You need to stop procrastinating. Maybe it’s time for some…
Bulletproof Coffee, Modafinil, nootropics, microdoses of acid, caffeine from coffee, caffeine from bracelets, aromatherapy, noise-canceling headphones, meditation, custom co-working spaces or productivity apps?
Whatever your choice, workers today (especially in the tech industry) will do just about anything to be more productive.
What we seek is that elusive, perfect focus — or flow state. According to researchers, someone in flow will experience a lack of sense of self, a decline in fear and time distortion. It is peak performance coupled with a euphoric high. All your happy neurotransmitters fire, and your dorsolateral prefrontal cortex performs differently — you do not second-guess yourself, you quite simply just flow into the next stages of the activity at hand. And you happen to be performing at the highest level possible. Sounds amazing, right?
But how do we invite this state in? A detailed piece in Fast Company outlines how extreme sports (professional surfing, steep incline skiing, skydiving, etc.) are the quickest way we’ve found to tap into human flow. Yet, these hobbies are just that — extreme. They require a large amount of skill and can be dangerous. For example, Steven Kotler, a pioneer in flow state research, broke almost 100 bones as a journalist researching the topic.
It all leads back to our collective (and very American) obsession with input versus output — are we achieving the most possible with the energy we put in? For all the bells and whistles at our disposal, we as a society are steadily declining in productivity as time goes on.
In 2014, a Gallup Poll found that the average American worker only spends a depressing 5 percent of their day in flow. A 2016 Atlantic article hypothesized that the main reason we’re decreasing in productivity as a workforce is that we’re not introducing new technologies quickly enough. Tech like robotics and smartphones could add a productivity push, but aren’t being integrated into the workplace. Business models are for the large part not that different from 10 years ago. In essence, we’re bored — we’re not being challenged in an engaging way, so we’re working harder than ever but achieving less.
But what if getting into flow state could be as easy as playing a video game?
Gameplay in RaveRunner
I first met Job Stauffer, co-founder and CCO at Orpheus Self-Care Entertainment, when I was, in fact, procrastinating from work. I was scrolling through Instagram and saw a clip of Job playing RaveRunner. As I love rhythm games, I immediately requested a build. Yet, I’d soon learn that this wasn’t just a simple VR experience.
RaveRunner was built for Vive, but easily ran on my Rift. When I first stepped into the game, I felt a bit overwhelmed — there was a lot of dark empty space; almost like something out of TRON. It was a little scary, which is actually very helpful for entering flow state. However, my fear soon dissipated as before me was a transparent yellow lady (Job calls her “Goldie”) dancing with the beat — providing a moving demo for gameplay. Unlike the hacking nature of Beat Saber, where you smash blocks with lightsabers, in RaveRunner you touch blue and orange glowing circles with your controllers, and move your whole body to the rhythm of the music.
There’s a softer, feminine touch to RaveRunner, and it wasn’t just Goldie. Behind the design of this game is a woman, Ashley Cooper, who is the developer responsible for the gameplay mechanics that can help a player attain flow. “Being in the flow state is incredibly rewarding and we strive to help people reach it by creating experiences like RaveRunner,” says Cooper. RaveRunner is a game you can get lost in, and by stimulating so many senses it allows you to let your higher level thoughts slip away — you become purely reactionary and non-judgmental.
In essence — flow.
After playing in this world for an hour, I called Job and learned more about his company. Apart from RaveRunner, Orpheus has also rolled out two other experiences — MicrodoseVR and SoundSelf. I got my first hands-on demo of all three products in one sitting at a cannabis technology event in Los Angeles, Grassfed LA. Grassfed is specifically geared toward higher-brow, hip tech enthusiasts; and the Orpheus suite of products fit right in.
As I lay in a dome with meditative lighting, a subwoofer purring below me, SoundSelf gave me one of the most profound experiences I’ve ever had in VR. I chanted into a microphone and my voice directly influenced the visuals before me. It felt like my spirit, the God particle, whatever you want to call it, was being stimulated from all these sensations. It was such a beautiful experience, but also was pure flow. I felt two minutes pass in the experience. I would have bet a hundred dollars on this. But I was inside for 10. Time didn’t make sense — a key indicator of flow state.
Next up was Microdose VR. I first tried Microdose VR in 2016 at the Esalen Institute in Big Sur. Esalen is the birthplace of the human potential movement, and so it was fitting that it was there, where I initially grasped the potential of VR for transformational experiences. Every other experience I had tried up to that point had been First Person Shooters or 360-video marketing pieces. And not to slight those experiences, but I felt that VR must be able to do MORE. Android Jones’ Microdose blew my mind. Like with SoundSelf, I completely lost track of time. I was directly impacting visuals with my body movements, and sound was a big factor as well. It was the first time I could easily imagine staying in VR for hours. Most of all, it was an experience that was only possible within VR. The game was the biggest euphoric rush I’ve felt in VR, and that feeling occurred again at this event.
We have the power as consumers to play games that tie in intrinsically with self-care but often don’t have options available. Job was propelled down this path when he asked himself “if I invest one hour of my time per day into playing a video game, what will I personally gain from that time invested, and will I even have time left over to do genuinely good things for myself?”
Orpheus is pioneering the fusion of game design with traditional self-care practices like meditation, dance/exercise, listening to music and creating art: “In short, we simply want players to feel amazing and have zero regrets about their time spent playing our games, allowing them to walk away knowing they have leveled up themselves, instead of their in-game avatars alone.”
One thing that will make it easier for people to try these experiences are portable headsets such as the ViveFocus and the Oculus Quest. Being untethered will allow people to travel with VR wherever they may go. Job sees this fundamental shift right ahead of us, as “video games and self-care are about to become one in the same. A paradigm shift. This is why all immersive Orpheus Self-Care Entertainment projects will be engineered for this critically important wave of VR.”
Orpheus is not a VR-only company, although their first three experiences are indeed for VR. As they expand, they hope to open up to a variety of types of immersive experiences, and are continually looking for projects that align with their holistic mission.
At the end of the day, I love that Orpheus is attempting to tap into a part of the market that so desperately needs their attention. If we don’t make self-care a major part of VR today, then we’ll continue to use VR as a distraction from, as opposed as a tool to enhance, our daily lives.
As for me, along with the peppermint tea, grapefruit candle and music that make my focus possible, I’ll now be adding some Orpheus games into my flow repertoire.
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Oculus wants to help companies like Walmart and Deloitte build VR experiences for their clients and customers. So today it launched “Oculus for Business,” which lets companies buy $900 Oculus Rift bundles in bulk with enterprise-grade warranties, a full VR commercial license and access to dedicated customer support. Read More
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Facebook is set to reveal a standalone Oculus virtual reality headset later this year, Bloomberg reports, with a ship date of sometime in 2018. The headset will work without requiring a tethered PC or smartphone, according to the report, and will be branded with the Oculus name around the world, except in China, where it’ll carry Xiaomi trade dress and run some Xiaomi software. Read More
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Harmonix has finally revealed when you can get your hands on Rock Band VR (virtually and physically, as it were): The game is set to debut on Oculus Rift on March 23, and fans can pre-order today if they’re interested in making sure they get in early. The Rock Band VR pre-order ships with a controller for $69.99, and the controller can also either work with your Xbox One or PlayStation… Read More
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CyberPowerPC has introduced a new entry-level virtual reality-ready pre-built PC with AMD’s Radeon RX 470 on board for $499 at Best Buy and Amazon. That’s a new low for an off-the-shelf VR-capable configuration, and it’s also available as a bundle with Oculus Rift for $1,099.98 — or exactly what you’d pay if you purchased the two separately. Even if there’s… Read More
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