A short while back, Facebook (FB) got involved in the virtual reality space with a product now known as Oculus; and so far, it’s worked well for the social network. However, as with any gaming idea, the competition in the space is growing fast. Monday, a large competitor announced that they will be making their way to the virtual reality stage…HTC. So, today we’ll talk a bit about the new HTC virtual reality product called Vive, How Facebook’s stocks reacted in early morning trading, and whether or not Facebook (FB) has anything to worry about when it comes to growing competition in the virtual reality industry.
HTC Announces It’s Making Its Way Into Virtual Reality With Vive
HTC announced Monday that it’s working with Valve Corp to create a virtual reality product. The new virtual reality goggles that will be available later this year will be used with sensor towers and a controller. Another key part of this announcement is that HTC has already created relationships with developers. The goggles are designed to run on content provided by Facebook (FB) competitor, Google (GOOG) as well as Lions Gate Entertainment (LGF), HBO, and more.
How Facebook (FB) Stocks Reacted Following The News
Following the announcement, Facebook’s stock price went on an immediate downtrend; falling from $79.07 at 9:30 AM to $78.67 by 9:55 AM. However, it seems as though Facebook (FB) investors have decided to brush off the challenge. Shortly following the day’s low (So far), the stock bounced back up in a big way. By 11:25 AM, it was over the start point at $79.83 per share. However, as we normally see in the market when tracking short time frames, we’re seeing a bit of volatility at the moment (11:40 AM) Currently, Facebook (FB) stocks are trading fro $79.37 per share. Overall, based on the movement we’ve seen today, I’m not sure that investors even consider HTC to be a major Challenge to Facebook (FB).
Is The Virtual Reality Space Already Convoluted With Too Much Competition?
In my opinion, it’s getting that way. I remember when gaming consoles made the big move from cartridges to CD’s; giving them more graphic capabilities. That’s when the gaming world exploded! Then again, there were only a few competitors. Sega, Sony, and Microsoft (MSFT) pretty much ran the entire market; and for the most part…Sony and Microsoft (MSFT) still do! However, that’s not how things seem to be playing out in the virtual reality space. It’s almost like any company that has anything to do with the technology industry wants to get involved. Just to name a few…
- Facebook (FB) Oculus & HTC Vive – Since these are the products the article is about, I won’t dive into these much…but, they are the start of the competition list.
- Samsung (SSNLF) – Samsung (SSNLF) recently released it’s own version of virtual reality. Their goggles are designed to be powered by the Samsung (SSNLF) Galaxy S6 smart phone…which could be a driver for sales on both sides.
- Sony – Sony has it’s own version of virtual reality in the making called Project Morpheus.
- Apple – There’s also been quite a few rumors flying around about Apple making their own virtual reality headset!
- Microsoft (MSFT) – Microsoft (MSFT) has worked it’s way into creating virtual reality goggles designed more for every day, non-gamers like myself. Their version is called the HoloLens. The goggles project holograms that can be moved and manipulated in ways that we’ve only seen in movies in the past.
The list goes on and on. The funny thing about all of this is that virtual reality really hasn’t even touched the scale of popularity yet. While the concept seems cool, there hasn’t been an overwhelming interest in the technology from consumers quite yet. So, with a limited audience, I think there’s already far too much competition in the space.
What Are Your Thoughts?
Do you think Facebook (FB) investors really care about HTC’s move into virtual reality? With so much competition in the small market as it is, do you think VR will even make a difference for a company like Facebook (FB)? Let me know in the comments below.