Facebook Could Make Huge Money with VR
For gamers and tech lovers, the Oculus Rift was the big news that was released in March. You can proudly get the headset if you have $600 and a compatible PC.
The Oculus Rift also comes with several games, movies, photos and experiences that are in Oculus’ app store. It also includes a controller.
R.W. Baird Senior Analyst, Colin Sebastian says, “We’re waiting a bit to see what the killer app is on Oculus, whether it’s a Facebook app itself or perhaps a game or experience we haven’t imagined yet.”
On April 5, HTC Vive retailing for $800 will be out; $400 Sony’s PlayStation VR was delayed until October and Apple was awarded a patent for a VR headset recently.
Facebook bought Oculus for $2 billion and analysts seem sure that it will pay off. However, the question is how long it will be before the headset prices fall and really become mainstream.
Cantor Fitzgerald’s Youssef Squali, who has a buy rating on Facebook shares, says that Facebook is at the center of a multi-billion growth opportunity in virtual reality and by 2020, 10% of its revenue will come out of that market when the overall market could be worth $30 billion. His estimates were based around historical data from Sony’s PlayStation 2. He further adds that if Facebook can sell 11 million of the Oculus Rift headsets by 2020 as well as lots of software, they may be able to generate up to $7 billion dollars.