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A startup called Playbyte wants to become the TikTok for games. The company’s newly launched iOS app offers tools that allow users to make and share simple games on their phone, as well as a vertically scrollable, fullscreen feed where you can play the games created by others. Also like TikTok, the feed becomes more personalized over time to serve up more of the kinds of games you like to play.
While typically, game creation involves some aspect of coding, Playbyte’s games are created using simple building blocks, emoji and even images from your Camera Roll on your iPhone. The idea is to make building games just another form of self-expression, rather than some introductory, educational experience that’s trying to teach users the basics of coding.
At its core, Playbyte’s game creation is powered by its lightweight 2D game engine built on web frameworks, which lets users create games that can be quickly loaded and played even on slow connections and older devices. After you play a game, you can like and comment using buttons on the right-side of the screen, which also greatly resembles the TikTok look-and-feel. Over time, Playbyte’s feed shows you more of the games you enjoyed as the app leverages its understanding of in-game imagery, tags and descriptions, and other engagement analytics to serve up more games it believes you’ll find compelling.
At launch, users have already made a variety of games using Playbyte’s tools — including simulators, tower defense games, combat challenges, obbys, murder mystery games, and more.
According to Playbyte founder and CEO Kyle Russell — previously of Skydio, Andreessen Horowitz, and (disclosure!) TechCrunch — Playbyte is meant to be a social media app, not just a games app.
“We have this model in our minds for what is required to build a new social media platform,” he says.
What Twitter did for text, Instagram did for photos and TikTok did for video was to combine a constraint with a personalized feed, Russell explains. “Typically. [they started] with a focus on making these experiences really brief…So a short, constrained format and dedicated tools that set you up for success to work within that constrained format,” he adds.
Similarly, Playbyte games have their own set of limitations. In addition to their simplistic nature, the games are limited to five scenes. Thanks to this constraint, a format has emerged where people are making games that have an intro screen where you hit “play,” a story intro, a challenging gameplay section, and then a story outro.
In addition to its easy-to-use game building tools, Playbyte also allows game assets to be reused by other game creators. That means if someone who has more expertise makes a game asset using custom logic or which pieced together multiple components, the rest of the user base can benefit from that work.
“Basically, we want to make it really easy for people who aren’t as ambitious to still feel like productive, creative game makers,” says Russell. “The key to that is going to be if you have an idea — like an image of a game in your mind — you should be able to very quickly search for new assets or piece together other ones you’ve previously saved. And then just drop them in and mix-and-match — almost like Legos — and construct something that’s 90% of what you imagined, without any further configuration on your part,” he says.
In time, Playbyte plans to monetize its feed with brand advertising, perhaps by allowing creators to drop sponsored assets into their games, for instance. It also wants to establish some sort of patronage model at a later point. This could involve either subscriptions or even NFTs of the games, but this would be further down the road.
The startup had originally began as a web app in 2019, but at the end of last year, the team scrapped that plan and rewrote everything as a native iOS app with its own game engine. That app launched on the App Store this week, after previously maxing out TestFlight’s cap of 10,000 users.
Currently, it’s finding traction with younger teenagers who are active on TikTok and other collaborative games, like Roblox, Minecraft, or Fortnite.
“These are young people who feel inspired to build their own games but have been intimidated by the need to learn to code or use other advanced tools, or who simply don’t have a computer at home that would let them access those tools,” notes Russell.
Playbyte is backed by $4 million in pre-seed and seed funding from investors including FirstMark (Rick Heitzmann), Ludlow Ventures (Jonathon Triest and Blake Robbins), Dream Machine (former Editor-in-Chief at TechCrunch, Alexia Bonatsos), and angels such as Fred Ehrsam, co-founder of Coinbase; Nate Mitchell, co-founder of Oculus; Ashita Achuthan, previously of Twitter; and others.
The app is a free download on the App Store.
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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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NextMind debuted its Dev Kit hardware at CES last year, but the hardware is now actually shipping, and the startup shared with me the production version to take a test drive. The NextMind controller is a sensor that reads electrical signals from your brain’s visual cortex, and translates those into input signals for a connected PC. A lot of companies have developed novel input solutions that use either eye tracking or electrical impulse input from the body, but NextMind’s is the first I’ve tried that worked instantly and wonderfully, providing a truly amazing experience of a kind that’s hard to find in the current world of relatively mature computing paradigms.
NextMind’s developer kit is just that — a product aimed at developers that’s meant to give them everything they need to get building software that works with NextMind’s hardware and APIs. It includes the NextMind sensor, which works with a range of headgear, including simple straps, Oculus VR headsets and even baseball hats, along with the software and SDK required to make it work on your PC.
Image Credits: NextMind
The package that NextMind provided me included the sensor, a fabric headband, a Surface PC with the engine pre-installed and a USB gamepad for use with one of the company’s pre-built software demos.
The sensor itself is lightweight, and can operate for up to eight hours continuously on a single charge. It can charge via USB-C, and its software is compatible with both Mac and PC, along with Oculus, HTC Vive and also Microsoft’s HoloLens.
The NextMind sensor itself is surprisingly small and light — it fits in the palm of your hand, with two arms that extend slightly beyond that. It features an integrated clip mount that can be used to attach it to just about anything to secure it to your head. In terms of fit, you just need to ensure that the nine sets of two-pronged electrode sensors make contact with your skin, which NextMind provides instructions on doing by essentially making sure it straps snugly to your head, and then “combing” the device slightly (moving it up and down to get your hair out of the way).
It wears comfortably, though you will notice the electrodes pressing into your skin, especially over longer use periods. The ability to use a standard baseball cap with the clip makes it super convenient to install and wear, and it worked with the Oculus Rift and Oculus Quest headstraps easily and instantly, too.
Image Credits: NextMind
Setup was a breeze. I was guided by NextMind’s co-creators, but the app provides clear instructions as well. There’s a calibration process during which you look at an animation being displayed on the host PC, which helps the sensor identify the specific signals your occipital lobe is emitting when performing the target behaviour that you’ll later use to actually interact with NextMind-optimized software.
Here’s where it’s worth pausing to explain how NextMind is actually “reading your thoughts”: The sensor basically learns what it looks like when your brain is engaged in what the company calls “active, visual focus.” It does this using a common signal that it overlays on controllable elements of a software’s graphical user interface. That way, when you focus on a specific item, it can translate that into a “press” action, or a “hold and move,” or any other number of potential output results.
NextMind’s system is elegantly simple in conception, which is probably why it feels so powerful and rich in use. After the calibration process, I immediately jumped into the demos and was performing a range of actions effectively with my brain. First was media playback and window management on a desktop, and from there I moved on to composing music, entering a pin on a number pad and playing multiple games, including a platform where my mind control was supplementing my physical input on a USB gamepad to create a whole new level of fun and complex gameplay that wouldn’t be possible otherwise.
This is a Dev Kit, so the included software is just a small sampling of what could be possible with NextMind eventually, now that developers are able to build their own. What’s amazing is that the included samples are breathtaking on their own, providing an overall experience that is mind-bending in all the best possible ways. Imagining a future where NextMind hardware is even smaller and a seamless part of an overall computing experience that also includes traditional input is tantalizing, indeed.
NextMind’s Dev Kit is definitely just that — a Dev Kit. It’s intended for developers who are going to use it to write their own software that will take advantage of this unique, safe and convenient form of brain-computer interface (BCI). The kit retails for $399, and is now shipping. NextMind has plans to eventually consumerise the product, and to work with other OEMs as well on implementations, but for now, even in this state, it’s an awe-inspiring glimpse into what could well be the next major shift in our daily computing paradigm.
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Facebook’s bad week just got worse: It’s being investigated in Germany for linking usage of its VR product, Oculus, to having a Facebook account.
The tech giant raised the hackles of the VR community this summer when it announced it would be merging users of the latest Oculus kit onto a single Facebook account — and would end support for existing Oculus account users by 2023.
New users were immediately required to have a Facebook account in order to log in and access content for the virtual reality kit.
In August Facebook also announced that it was changing the name of the VR business it acquired back in 2014 for around $2 billion — and had allowed to operate separately — to “Facebook Reality Labs“, signalling the assimilation of Oculus into its wider social empire.
(Related: The last of Oculus’ original co-founders left the company last year.)
In recent years Facebook has been pushing to add a “social layer” to the VR platform — but the heavy-handed requirement for Oculus users to have a Facebook account has not proved popular with gamers.
Now antitrust authorities are taking an interest in the move.
Germany’s Federal Cartel Office (aka, the Bundeskartellamt) said today that it’s instigated abuse proceedings against Facebook to examine the linkage between Oculus VR products and its eponymous social network.
In a statement, its president, Andreas Mundt, said:
In the future, the use of the new Oculus glasses requires the user to also have a Facebook account. Linking virtual reality products and the group’s social network in this way could constitute a prohibited abuse of dominance by Facebook. With its social network Facebook holds a dominant position in Germany and is also already an important player in the emerging but growing VR (virtual reality) market. We intend to examine whether and to what extent this tying arrangement will affect competition in both areas of activity.
The FCO has another “abuse of dominance proceeding” ongoing against Facebook — related to how it combines user data for ad profiling in a privacy-hostile way, which the authority contends is an abuse of Facebook’s market dominance.
That case is seen as highly innovative in how it combines privacy and antitrust concerns so is being closely watched.
The latest FCO proceeding against Facebook comes at an awkward time for the tech giant, which has been hit with a massive antitrust lawsuit from 46 U.S. States — accusing it of suppressing competition through monopolistic business practices.
As antitrust regulators have stepped up their scrutiny of Zuckerberg’s empire in recent years, Facebook has responded aggressively: Announcing a plan to consolidate its messaging products onto a single technical backend, as well as adding Facebook branding to its acquisitions — in an apparent bid to make it harder for competition regulators to order a break up.
Facebook’s PR has also sought to cloak the “single backend” move by claiming it will increase user privacy.
Yet the states’ antitrust case against the company includes filings that show a Facebook executive discussing using moments of perceived increased competition for its business as an opportunity to decrease user privacy.
So, uh, awkward….
Reached for comment on the FCO Oculus proceeding, a Facebook spokesperson sent us this statement: “While Oculus devices are not currently available for sale in Germany, we will cooperate fully with the Bundeskartellamt and are confident we can demonstrate that there is no basis to the investigation.”
The tech giant has used a series of legal tactics to block the FCO’s earlier order against “superprofiling” users.
Last year Facebook successfully applied to block the order banning it from combining user data. However, Germany’s Federal Court of Justice reversed the decision of the Higher Regional Court — confirming the FCO’s order.
Although, the hearing on the main proceeding is still pending at the Düsseldorf Higher Regional Court — currently scheduled for March 26, 2021 (after being postponed from a date in November).
Facebook also responded to the Federal Court of Justice ruling by filing another emergency appeal against the FCO’s order — succeeding for a second time in blocking the order against combining user data.
The FCO says it does not have a route to appeal this preliminary block on points of law — meaning it’s had to lodge a complaint with the Federal Court of Justice, which it did on December 2.
In a statement, Mundt criticized Facebook for resorting to “legal remedies” to block the order, which he said is delaying relief for consumers and competitors vis-à-vis Facebook’s abusive practices.
“The fact that Facebook has resorted to various legal remedies is not surprising in view of the significance which our proceedings have for the group’s business model. Nevertheless, the resulting delay in proceedings is of course regrettable for competition and consumers,” he said.
“This is the second time that the Higher Regional Court has preliminarily granted an emergency appeal filed by Facebook. The deadline imposed on Facebook for implementing our demands has again been suspended. As in our view the reasons for this are not sustainable, we have immediately filed a complaint with the Federal Court of Justice. We want the clock to be ticking again for Facebook.”
Facebook using courts to block attempts to hold its business model accountable for violating regional laws is par for the course in Europe.
The tech giant has recently succeeded in blocking a preliminary order from Ireland’s Data Protection Commission to suspend personal data transfers to the U.S. by applying for a judicial review of the regulator’s process, for example.
It also sought to block Irish courts from referring the Schrems II case, which underpins that decision, to the CJEU in the first place — though it did not succeed.
In public remarks in September, Facebook VP Nick Clegg claimed it’s taking that legal action not to defend its own business model but to “try to send a signal that this is a really big issue for the whole European economy, for all small and large companies that rely on data transfers” — which he suggested would be “absolutely disastrous” for the EU as a whole.
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Rise, shine and build your business startup fans. It’s day four of Disrupt 2020, and this is your daily snapshot of just some of the heavy-hitters, events, breakout sessions and all-around opportunity that’s yours for the taking.
Looking for the complete lineup? You’ll find it in the Disrupt agenda. Note: unless otherwise stated, all times are PST. Kicking yourself for not jumping on the opportunity bandwagon? Simply buy a Disrupt pass here, and kick your regrets to the curb.
Buckle up, folks — you’re in for a great day.
Athleisure wear is one of the hottest trends in retail, and it’s certainly a popular work-at-home wardrobe during a pandemic. Head to the Disrupt Stage and join comedian/tech investor Kevin Hart and Fabletics’ Adam Goldenberg for Retail is in the Details. They’ll talk about the company’s future and the type of tech Hart may invest in next (9:05 a.m. – 9:30 a.m.).
Everybody loves robots, but not many people know more about them than Boston Dynamics’ Robert Playter. You’ll find him on the Disrupt Stage talking about the company’s transition from robotics research to commercial production. Don’t miss Putting Robots to Work (10:00 a.m. – 10:20 a.m.)
We trust you haven’t missed a minute of the always-thrilling Startup Battlefield pitch competition. Still, a reminder never hurts. Session four takes place on the Disrupt Stage. Don’t miss watching today’s cohort lay it all on the line for a shot at $100,000 (10:40 a.m. – 11:45 a.m.).
Okay folks this session, Under the Radar, is a big, big deal. Legendary VC and Silicon Valley force of nature, Benchmark’s Peter Fenton joins us on the Disrupt Stage for a rare interview. Topic? The future of startups and venture capital (11:45 a.m. – 12:05 p.m.).
Head to the Extra Crunch Stage for product development tips from current and former product heads at places like Facebook, Zoom, Slack, Hulu and Oculus. Zoom’s Oded Gal, Advisor’s Eugene Wei, Slack’s Tamar Yehoshua and Inspirit’s Julie Zhuo will discuss How to Iterate Your Product (11:50 a.m. – 12:45 p.m.).
Data security is everyone’s concern — from budding startup founders all the way up to the NSA. Don’t miss Spycraft and Cybersecurity and the opportunity to hear Anne Neuberger, head of the NSA’s new Cybersecurity Directorate. She’ll take to the Disrupt Stage and discuss cyber threats, disrupting foreign adversaries and helping you improve your own cybersecurity (1:00 p.m. – 1:20 p.m.).
Whew, that rundown should whet your appetite for the day ahead. Connect, inspire, collaborate and take advantage of all the tips, advice, tools and opportunity Disrupt 2020 offers.
Still standing on the sidelines? You have two full days left to Disrupt and reject regret. Buy a Disrupt pass right now.
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One of the biggest complaints around VR is the same issue that’s plagued generations of gaming platforms: content. A console is only as good as its games, as the saying goes. Today at Facebook Connect, however, Oculus just added two of gaming’s biggest franchises to its slate of upcoming titles.
Ubisoft marked the event by announcing that it will be bringing Assassin’s Creed and Splinter Cell games to VR. The key details are still extremely thin at the moment, but the gaming giant calls them both “new, made-for-VR,” implying that they’ll be more than just ports of existing games.
Production for both is being spearheaded by Ubisoft’s Red Storm subsidiary. The developer has been working on Tom Clancy titles since the late-90s. It’s also behind a handful of VR titles, including 2017’s Star Trek: Bridge Crew.
More details — including timing — will be available closer to launch. Whenever that is.
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Oculus co-founder Nate Mitchell is heading up a new game development house called Mountaintop Studios, joined by colleagues from around the gaming industry. The company aims to leave the crunch and toxic culture pervasive in game studios behind and make one that’s “collaborative, anti-crunch, diverse and inclusive.”
The founding team includes Mitchell’s former colleague Mark Terrano, who was creative director at Oculus, Matt Hansen, former COO of Double Fine, and artist Rich Lyons, who worked at Naughty Dog and Vigil.
According to its webpage, Mountaintop will be creating “multiplayer games for players who crave a challenge,” though when I chatted with Mitchell and Hansen, they cited mostly single-player titles. The theme they came back to was growth and a journey: mystery, but also mastery.
As the company’s initial blog post puts it:
It isn’t just the thrill of victory. It’s looking back and seeing how far you’ve come. How you were forced to grow, adapt and improve. It’s the satisfaction of knowing you’re better than you were before. And sometimes, it’s sharing the joy of the climb with your friends.
While it’s too early for the team to reveal details on their first game, “We think we’re onto something,” Mitchell said. Considering the time and effort it takes to create a AAA game these days, and the fact that Mountaintop is currently only five full-timers, we can probably expect the first details no earlier than next year.
But the founders were clear that the company is also about getting away from the culture problems in game development.
“What we really want to do is have a studio that is people first,” Mitchell said. “There are so many folks across the industry who have just been burnt out by endless crunch. And the expectations around hours don’t allow for any sort of work-life balance. We want Mountaintop to be a place where people can come and still have that.”
But it isn’t just labor issues of crunch and overtime plaguing gaming. Racism and sexism that are endemic and evident in both the final products and companies themselves. And it must be said that the founders themselves follow one of the most common and unfortunate trends in the industry: All four are white men.
Mitchell and Hansen declined to make any specific commitments as far as diversity and inclusion go, despite those values being central to the new studio. They did, at least, acknowledge the difficulty and complexity of this pursuit.
“There’s no silver bullet for inclusivity, a lot of it is long-term work,” Mitchell said. “Because it’s a fresh studio, a fresh culture, we can start from scratch with the right foundation. We never thought when we kicked off the studio that we’d be launching in the middle of not just a pandemic, but a global conversation about institutionalized racism, police violence and injustice. So talking about that stuff internally, where we stand as individuals and as a company, that informs how we act as a company.”
“One of the earliest conversations we had was around getting the culture right. Our founders are all aligned in this,” added Hansen.
“There’s a bunch of micro things we can do every day,” continued Mitchell. “Setting our cultural values, making sure people understand those, driving toward inclusivity and diversity training, excellent hiring practices, working with community groups and integrating and supporting them, maybe recruiting from there.”
It’s a lot of promises and few concrete commitments, a common theme in tech and gaming these days. Having one’s heart in the right place is nice, but what the industries need is action. Hopefully the promises are preludes to lasting decisions, but only time (plus real and sustained effort on Mountaintop’s part) will tell.
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Mark Zuckerberg won’t be spending 2020 focused on wearing ties, learning Mandarin or just fixing Facebook. “Rather than having year-to-year challenges, I’ve tried to think about what I hope the world and my life will look in 2030,” he wrote today on Facebook. As you might have guessed, though, Zuckerberg’s vision for an improved planet involves a lot more of Facebook’s family of apps.
His biggest proclamations in today’s notes include that:

These are all reasonable predictions and suggestions. However, Zuckerberg’s post does little to address how the broadening of Facebook’s services in the 2010s also contributed to a lot of the problems he presents:
Noticeably absent from Zuckerberg’s post are explicit mentions of some of Facebook’s more controversial products and initiatives. He writes about “decentralizing opportunity” by giving small businesses commerce tools, but never mentions cryptocurrency, blockchain or Libra directly. Instead he seems to suggest that Instagram store fronts, Messenger customer support and WhatsApp remittance might be sufficient. He also largely leaves out Portal, Facebook’s smart screen that could help distant families stay closer, but that some see as a surveillance and data collection tool.
I’m glad Zuckerberg is taking his role as a public figure and the steward of one of humanity’s fundamental utilities more seriously. His willingness to even think about some of these long-term issues instead of just quarterly profits is important. Optimism is necessary to create what doesn’t exist.
Still, if Zuckerberg wants 2030 to look better for the world, and for the world to look more kindly on Facebook, he may need to hire more skeptics and cynics that see a dystopic future instead — people who understand human impulses toward greed and vanity. Their foresight on where societal problems could arise from Facebook’s products could help temper Zuckerberg’s team of idealists to create a company that balances the potential of the future with the risks to the present.
Every new year of the last decade I set a personal challenge. My goal was to grow in new ways outside my day-to-day work…
Posted by Mark Zuckerberg on Thursday, January 9, 2020
For more on why Facebook can’t succeed on idealism alone, read:
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Facebook doesn’t want its hardware like Oculus or its augmented reality glasses to be at the mercy of Google because they rely on its Android operating system. That’s why Facebook has tasked Mark Lucovsky, a co-author of Microsoft’s Windows NT, with building the social network an operating system from scratch, according to The Information’s Alex Heath. To be clear, Facebook’s smartphone apps will remain available on Android.
“We really want to make sure the next generation has space for us,” says Facebook’s VP of Hardware, Andrew ‘Boz’ Bosworth. “We don’t think we can trust the marketplace or competitors to ensure that’s the case. And so we’re gonna do it ourselves.”

By moving to its own OS, Facebook could have more freedom to bake social interaction — and hopefully privacy — deeper into its devices. It could also prevent a disagreement between Google and Facebook from derailing the roadmaps of its gadgets. Facebook tells TechCrunch the focus of this work is on what’s needed for AR glasses. It’s exploring all the options right now, including potentially partnering with other companies or building a custom OS specifically for augmented reality.
One added bonus of moving to a Facebook-owned operating system? It could make it tougher to force Facebook to spin out some of its acquisitions, especially if Facebook goes with Instagram branding for its future augmented reality glasses.

Facebook has always been sore about not owning an operating system and having to depend on the courtesy of some of its biggest rivals. Those include Apple, whose CEO Tim Cook has repeatedly thrown jabs at Facebook and its chief Mark Zuckerberg over privacy and data collection. In a previous hedge against the power of the mobile operating systems, Facebook worked on a secret project codenamed Oxygen circa 2013 that would help it distribute Android apps from outside the Google Play store if necessary, Vox’s Kurt Wagner reported.
That said, its last attempt to wrestle more control of mobile away from the OS giants in 2013 went down in flames. The Facebook phone, built with HTC hardware, ran a forked version of Android and the Facebook Home user interface. But drowning the experience in friends’ photos and Messenger chat bubbles proved wildly unpopular, and both the HTC First and Facebook Home were shelved.
Now Facebook is hoping to learn from past mistakes as it ramps up its hardware efforts with a new office for the AR/VR team in Burlingame, 15 miles north of the company’s headquarters. The 770,000-square-foot space is designed to house roughly 4,000 employees. Facebook tells TechCrunch the team will move there in the second half of 2020 to make use of its labs, prototype space and testing areas. The AR/VR team will still have members at other offices across California, Washington, New York and abroad.
TechCrunch asked for more info about the space, and Facebook revealed that it’s planning to open a public-facing, experiential space — possibly the first Facebook-branded permanent location that anyone can visit. There, people will be able to come play with its augmented reality and virtual reality products. Those could range from the Oculus Quest headsets and Facebook Portal smart displays it currently sells to potential future products like the camera glasses it’s reportedly building with Ray Ban-maker Luxottica and eventually its full-fledged AR eyewear.
A rendering of Facebook’s under-construction new space in Burlingame, Calif.
Facebook says it’s considering building true retail space into the Burlingame office to let people try and then buy its hardware products. This would be a significant first step toward self-branded Facebook retail spaces in the vein of Apple and Microsoft’s stores.
Interested in potentially controlling more of the hardware stack, Facebook held acquisition talks with $4.5 billion market cap semiconductor company Cirrus Logic, which makes audio chips for Apple and more, The Information reports. That deal never happened, and it’s unclear how far the talks went given tech giants constantly keep their M&A teams open to discussions. But it shows how serious Facebook is taking hardware, even if Portal and Oculus sales have been slow to date. Facebook declined to comment on the matter.

That could start to change next year, though, as flagship virtual reality experiences hit the market. I got a press preview of the upcoming Medal of Honor first-person shooter that will launch on the Oculus Quest in 2020. An hour of playing the World War II game flew by, and it was one of the first VR games that felt like you could enjoy it week after week rather than being just a tech demo. Medal of Honor could prove to be the killer app that convinces gamers they have to get a Quest.
Facebook has also been working on hardware experiences for the enterprise. Facebook Workplace video calls can now run on Portal, with its smart camera auto-zooming to keep everyone in the board room in frame or focused on the action. The Information reports Facebook is also prototyping a VR videoconferencing system that Boz has been testing with his team. Facebook tells TechCrunch that Boz hosted two internal events where he videoconferenced through VR to about 100 of his team leaders using virtual Q&A software Facebook is prototyping internally. It’s hoping to learn what would be necessary to consistently hold meetings in VR.
The hardware initiatives, meanwhile, feed back into Facebook’s core ad business. It’s now using some data about what people do on their Oculus or Portal to target them with ads. From playing certain games to accessing kid-focused experiences to virtually teleporting to vacation destinations, there’s plenty of lucrative data for Facebook to potentially mine.
Facebook tells TechCrunch that Portal currently takes data — like if you log in, make calls or use certain features — to inform ad targeting. For example, it could show you ads related to video calling if you do that a lot. With Oculus, if you connect your Facebook account, then data about apps you use or events you join could be used to tune its algorithms or target ads.

Facebook even wants to know what’s on our mind before we act on it. The Information reports that Facebook’s brain-computer interface hardware for controlling interfaces by employing sensors to recognize a word a user is thinking has been shrunk down. It’s gone from the size of a refrigerator to something hand-held, but is still far from ready for integration into a phone. Facebook tells TechCrunch it’s making progress, improving the word error rate significantly up the state-of-the-art research and expanding the dictionary of words that can be recognized. Facebook can now decode brain activity in real time, and it’s working on an intermediary system for identifying single words as it pushes toward 100 words-per-minute brain typing.
Selling Oculus headsets, Portal screens and mind-readers might never generate the billions in profits Facebook earns from its efficient ads business, but they could ensure the social network isn’t locked out of the next waves of computing. Whether those are fully immersive like virtual reality, convenient complements to our phones like smart displays or minimally invasive sensors, Facebook wants them to be social. If it can bring your friends along to your new gadgets, Facebook will find some way to squeeze out revenue while keeping these devices from making us more isolated and less human.
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Most of the people I spoke with at Facebook’s Oculus Connect see the proliferation of virtual reality as a foregone conclusion, one that’s just a matter of timing at this point. For Facebook, the conference’s “The Time is Now” catchphrase showcased that they feel their hardware is ready for everyone.
But despite the success they feel like they’ve tapped into when it comes to hardware iterations, the company’s bread and butter social networking prowess feels like it’s barely improved in-headset in the past several years of VR experimentations.
“On the social side, looking back, it’s kind of embarrassing all of the stages we’ve gone through at Oculus,” Oculus CTO and veteran programmer John Carmack conceded onstage during his signature rambling annual keynote, noting that his own social APK was followed by Oculus Rooms, Oculus Venues, Facebook Spaces and now the company’s latest shiny pearl Facebook Horizon.
Horizon’s debut this year included a flashy trailer for what quickly seemed to be the company’s biggest gamble and first potential social hit, a massive multi-player online world. In introducing the software, Zuckerberg talked about people-centric software as Facebook’s “bread-and-butter,” noting, “We build a lot of the best social experiences for phones and computers, and we want to do this for virtual reality as well.”
But Facebook does not actually appear to hold that much of an advantage over much smaller game studios in terms of understanding how to make social virtual reality experience take off.
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