By Malathi Nayak
SAN FRANCISCO, Dec 13 (Reuters) – The startup Oculus VR has
raised $75 million to market its virtual-reality headset for
video games, hoping to attract consumers who have shied away
from such products in the past.
Irvine, California-based Oculus raised the sum in a round
led by Silicon Valley investor Mark Andreessen of venture
capital firm Andreessen Horowitz.
Oculus plans to use its new capital to produce commercial
versions of its virtual reality glasses for video games called
Ouclus Rift, which users mount on their heads with a strap. It
also hopes to take its technology beyond gaming.
“We believe Oculus will not only alter the gaming landscape
but will redefine fundamental human experiences in areas like
film, education, architecture, and design,” Andreessen said in a
statement.
Andreessen, a venture capitalist currently on the board of a
select and small set of startups, will join Oculus’s board of
directors.
Oculus faces the challenging task of building a
commercially-viable virtual reality technology business. For
years, analysts have questioned if 3D virtual reality devices,
whether gamer-centric or otherwise, have the potential to
achieve widespread adoption and mainstream success.
The company introduced its 3D gaming goggles after raising
$2.4 million through the popular crowd-funding website
Kickstarter last year. It quickly captured the interest of game
developers who paid $300 for each device and its development
kit.
It raised $16 million through its first venture capital
funding round in June. Three firms that participated in that
round, Spark Capital, Formation 8 and Matrix Partners, also
participated in its second funding round.
Since then, the company has been building a technology
platform for its hardware to support video games and other
applications and sold over 40,000 development kits.
While developers have lauded the company’s efforts to
improve virtual reality technology with its 3D device, some have
raised concern over latency issues and said its bulky design
offered a cumbersome gaming experience.
The company used this feedback to build its latest prototype
that will hit the retail market soon and offer a comfortable and
smoother experience, Oculus Chief Executive Brendan Iribe said
in an interview.
In the past, companies such as Sony Corp have
attempted to put 3D goggles on the market but have been unable
to garner interest from consumers. For instance, Sony’s HMZ-T1,
which launched in 2011, was criticized by tech enthusiasts for
being clunky and gimmicky. Japanese game maker Nintendo
discontinued its virtual-reality gaming device “Virtual Boy”
shortly after its release in 1995 due to poor sales.
Iribe said that companies have not had much luck in building
commercially successful virtual reality products, but said he is
confident in the incremental technological improvements his
company has made with its latest prototype.
“We have been able to make this massive leap” to solve
hardware and software challenges, he said.
The company is still settling on a time frame for its
launch. The current development kit is available to developers
for $300. Iribe declined to share details about the price point
but said it could likely be in the $300 to $400 range.
