Facebook’s Oculus is being consolidated underneath a new name. As part of a rebranding, Facebook mergers its AR/VR business including Oculus under the name Facebook Reality Labs.
Augmented and Virtual Reality has presented massive potential before engineers, scientists, and perhaps all technologists. And since that presented potential continues to remain untapped, many tech giants are spending billions of dollars into this for R&D and product development.
Facebook is also doing one such promising effort, which also involved a significant amount of money. But now with a Facebook post, Mark Zuckerberg has announced the merging of all of Facebook’s AR/VR ‘tools’ into one common entity called “Facebook Reality Labs”.
This announcement comes on the heels of the renaming of Oculus’ annual event, Oculus Connect. This event is happening on September 16 under its new title, Facebook Connect.
Meantime, the event may reveal the next Oculus Quest iteration, and now it’s unclear if new products in Facebook’s VR line will continue to bear the Oculus branding.
Why Facebook Rebranded Oculus?
Under the Tech@Facebook post, the move describes as a means to make clearer which VR projects were owned by Facebook. Notably, the social media giant acquired Oculus in 2014 and has allowed it to operate under that name since.
Oculus contributed Facebook’s bottom line with nearly $250Mn in the last quarter. However, the entire of Facebook’s other revenues ($297Mn), primarily comprised of Oculus (80%) and other AR/VR such as Spark and Facebook Portal. But now after putting all of it under “Labs”, Facebook wants to clear that all these stuff are experimental. They do not contribute to the bottom line and are hence not to be taken seriously.
This can be similar to Google’s moonshot division as well. But one more speculation is there. Oculus latest Quest headset records $100 million worth of sales alone. This may be a pretty good performance since AR and VR aren’t raking in huge billions for tech giants. And with these good results, now Facebook willing to doubling down on its AR/VR efforts and clubbing Spark, Portal, and others.