Microsoft Acquires Social Virtual Reality App AltspaceVR
Has one of the biggest mysteries in the world of virtual reality been solved?
Remember back when AltspaceVR, running out of cash, had moved down to a skeleton crew as they tried to keep its social VR app, only to be saved at the last minute by a secret benefactor? It was widely assumed that AltspaceVR’s savior was none other than Palmer Luckey, creator of the Oculus Rift, the key component in Facebook’s virtual reality experience?
Although it’s still possible that he may have been involved, it seems that Luckey, who even seemed to add to the speculation in the summer, may not be fully responsible and while there may have been a few parties who helped save the startup, it’s quite likely that the real savior of AltspaceVR is its new owner: Microsoft. Of course their interest in the company, considering what Microsoft has lined up for this month with its newest operating system update, is less of a mystery than who saved it.
While they may not seem like a natural fit, with its recent push into mixed reality and a big release set for the coming days, it seems clear that Microsoft believes that an app like AltspaceVR will allow Windows to build a mixed reality community that it hopes will compete with the likes of Facebook Spaces. Whether it’s successful is hard to say. Remember, AltspaceVR, despite a small, dedicated fanbase, wasn’t able to generate a second round of funding, due in part to slow adoption of virtual reality.
It’s possible that the cheaper Window’s mixed reality headsets, amongst which includes the new Samsung HMD Odyssey and are ready for Christmas pre-orders, may have allow for a quicker pace of adoption than their VR cousin but it’s clear than Microsoft has even bigger expectations for how the VR app can fit into the larger Windows ecosystem.
As a Microsoft spokesperson explained to TechCrunch, "AltspaceVR takes social networks, combines them with real-time experiences, and leverages immersive presence to transcend beyond sharing posts to sharing situations. Situations of people, places, and things have deeper meaning and in turn, are more memorable."
Financial terms of the deal were not announced and considering the dire straits AltspaceVR was in, it’s hard to imagine that they were onerous on Microsoft. Overall it’s a low cost gamble that comes with a great deal of media attention, if not a large user base, and can add some heat to their Creators Update announcement.
Facebook is likely not shaking in their boots; Spaces and the Rift are a strong combination that Microsoft is going to be hard pressed to match. But the competition between mixed and virtual reality is real and AltspaceVR is yet another indication that Microsoft has clearly picked a side.