UPDATED 14:26 EDT / NOVEMBER 27 2019

EMERGING TECH

Facebook acquires VR studio Beat Games, hints at more deals in 2020

In a bid to boost the content ecosystem around its Oculus virtual reality headsets, Facebook Inc. has acquired Beat Games s.r.o, a small VR studio behind one of the world’s most popular immersive video games.

The social network announced the deal on Tuesday afternoon without disclosing financial terms. Beat Games will join Facebook’s Oculus Studio unit and will continue to operate independently out of its current office in Prague.

Beat Games’ flagship title, Beat Saber, is a rhythm game featuring original music that had sold more than a million copies when the studio last shared download figures in May. The title was on the market only for nine months at the time. Mike Verdu, the director of content for Oculus Studio, wrote in a blog post that Facebook will provide Beat Saber with additional “resources and know-how” to support its user base.

The executive hinted that more VR acquisitions could be on the table. In a section of his post entitled, “Do you plan to acquire other studios? What else are you doing to accelerate VR?” Verdu wrote that “we’re exploring many ways to accelerate VR, and we think next year is going to be an incredible one of VR game launches and announcements. We are thrilled to have Beat Games join our team. This is just the beginning.”

VR headsets such as Facebook’s Oculus-branded devices have not yet achieved the mass market adoption many have hoped for, despite big investments in hardware from both the social network and rival players. Enhancing the content available on its headsets is the main way the company can try to spur the interest of everyday consumers.

If and when VR enters the mainstream, video games could prove to be a major revenue driver. Research firm Newoo B.V. estimates that the gaming market is worth over $150 billion today and will reach $196 billion by 2022 thanks thanks to a 9% compound annual growth rate. Studio acquisitions such as the Beat Games deal could enable Facebook to capture a slice of that spending while diversifying its revenue stream in the VR segment beyond the relatively low-margin Oculus headsets.

Image: Facebook

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