Facebook Acquires Oculus Rift VR

So earlier today, we saw this: FB buys Oculus Rift for $2bil in ~300-400mil cash and rest stock and the internet has been virally complaining.
People have been massively disappointed (myself included) and posting things like "FACEbook is taking things a little too literally", with a FB logo plastered on the front of the OR, but I think our fears shouldn't make us lose hope as explained throughout this article. 

Great article analysing both sides and future outcome of things:
http://gizmodo.com/facebook-could-give-you-the-oculus-you-always-wanted-1551561433 
Some other news outlets:
http://kotaku.com/facebook-buys-oculus-rift-for-2-billion-1551487939
http://techcrunch.com/2014/03/25/facebook-to-buy-oculus-vr-maker-of-the-rift-headset-for-around-2b-in-cash-and-stock/
Minecraft backs out of OR:
http://www.theverge.com/2014/3/25/5547626/minecraft-oculus-vr-cancelled

At first I was like "What. In. The. World." Mark Zuckerberg's even considering ads!?

Palmer tries to allay concerns, which is nice, but to small effect, although does confirm their independent status and FB not screwing them over like MS or Apple buying out a company and disassembling it (which was amusing for me, as most indie techs/devs probably has similar sentiments, especially supporters of Linux and open source or just people who were screwed by M$/Apple):
http://www.reddit.com/user/palmerluckey/comments/?sort=hot

But now that OR ultimately seems to be able to operate independently and do stuff as they've always had without excessive FB intrusion like needing an FB account to connect to OR, I am cautiously optimistic again. Especially with Palmer saying stuff like: (double quoted passages are Palmer quoting redditors)

Sure, we could have made more money down the road, but this deal was not about making the most money. It was about doing the best thing for the long term future of virtual reality.

This lets us make CV1 everything we want it to be, which is going to drive much larger sales and adoption.

We defined the milestones. They are exactly in line with our prior plans.

We promise we won't change. If anything, our hardware and software will get even more open, and Facebook is onboard with that.

They are champions of open hardware and software.
Our relationship with the community is not going to change, and we are not going to spy on anyone. Feel free to rag on me if things turn out the way you predict, but you have my word that nothing will change for the worse.

However, if anyone has more control or say on ANY decision then Palmer and John do, then I'm out. They were the top, they didn't answer to anyone but the consumers.

We have had to answer to people since the Kickstarter, and even more so after raising two rounds of funding from investment partners to hire the people we need. This deal gives us more freedom to make the right decisions, not less!
Facebook has a good track record for letting companies operate independently post-acquisition, and they are going to do the same for us. Trust me on this, I would not have done the deal otherwise.

Just promise me there will be no specific Facebook tech tie-ins.

I promise.
Why would we want to sell to someone like MS or Apple? So they can tear the company apart and use the pieces to build out their own vision of virtual reality, one that fits whatever current strategy they have? Not a chance.

And:

This deal specifically lets us greatly lower the price of the Rift.

We have not gotten into all the details yet, but a lot of the news is coming. The key points:
1) We can make custom hardware, not rely on the scraps of the mobile phone industry. That is insanely expensive, think hundreds of millions of dollars. More news soon.
2) We can afford to hire everyone we need, the best people that fit into our culture of excellence in all aspects.
3) We can make huge investments in content. More news soon.

And:

Nothing changes. Keep in mind that Mark Zuckerberg has publicly spoken against NSA surveillance.

is that 75-100 million dollars of VC not enough to bring the CV1 to market?

It it enough to bring a consumer product to market, but not the consumer product we really wish we could ship. This deal is going to immediately accelerate a lot of plans that were languishing on our wishlist, and the resulting hardware will be better AND cheaper. We have the resources to create custom hardware now, not just rely on the scraps of the mobile phone industry. There is a lot of good news on the way that is not yet public, so believe me, things will become a lot more clear over time.

Why did Oculus VR choose to risk their reputation with their core supporters in such a substantial way, before there is even a real product on store shelves?

Because it is the best thing in the long term for virtual reality, and the best thing in the short term for our core supporters. We are going to stay as community focused as we have always been! We now have the freedom to make the right decisions without worrying about short financial profit or investor returns.

Facebook is making a long term bet on VR, not a short term run on profit. We have more freedom to do what we want now that our investment partners are out of the picture.

 We are already working on our own VR game platform/launcher, but we are not going to force everything to go through it. Facebook has no interest in changing that, they believe in what we have been doing all along.

 I guarantee that you won't need to log into your Facebook account every time you wanna use the Oculus Rift.

And:

The appeal of Oculus (as compared to Sony, for example) is because it is on a PC platform, and thus allows us, the developers, freedom over what we want to do with it.

None of that will change. Oculus continues to operate independently! We are going to remain as indie/developer/enthusiast friendly as we have always been, if not more so. This deal lets us dedicate a lot of resources to developer relations, technical help, engine optimizations, and our content investment/publishing/sales platform. We are not going to track you, flash ads at you, or do anything invasive.

The Rift is absolutely targeted towards the gaming population, which tends to be teenage to early 20s/30s, which is the exact population that Facebook is currently losing. By partnering with Facebook, you are gaining access to a massive userbase of people that the rift is not targeted towards, which people might feel is a very bad move.

Almost everyone at Oculus is a gamer, and virtual reality will certainly be led by the games industry, largely because it is the only industry that already has the talent and tools required to build awesome interactive 3D environments. In the long run, though, there are going to be a lot of other industries that use VR in huge ways, ways that are not exclusive to gamers; the current focus on gaming is a reflection of the current state of VR, not the long term potential. Education, communication, training, rehabilitation, gaming and film are all going to be major drivers for VR, and they will reach a very wide audience. We are not targeting social media users, we are targeting everyone who has a reason to use VR.

What we fear is not that Oculus will be partnering with Facebook, but that you are selling out the company to Facebook and no longer retain control over Oculus. I can say that I, personally, support Oculus because I believed in the goals and visions that you had.

This acquisition/partnership gives us more control of our destiny, not less! We don't have to compromise on anything, and can afford to make decisions that are right for the future of virtual reality, not our current revenue. Keep in mind that we already have great partners who invested heavily in Oculus and got us to where we are, so we have not had full control of our destiny for some time. Facebook believes in our long term vision, and they want us to continue executing on our own roadmap, not control what we do. I would never have done this deal if it meant changing our direction, and Facebook has a good track record of letting companies work independently post-acquisition.

If I ever need a Facebook account to use or develop for the Rift, I'm done. - You will not need a Facebook account to use or develop for the Rift.
If I ever see Facebook branding on anything that's not optional, I'm done. - Not really reasonable in a literal sense, but I get your drift.
If I ever see ads on anything that I've already paid for, I'm done. - That is a developer decision, not our decision. If someone wants to sell a game with built-in ads, they will have to deal with the natural consequences.

I'm just wondering if OR will go public and about how kickstarters don't actually get shares in the startup ... I know some kickstarters already feel betrayed, screwed over and that OR sold out.


Update: More interesting articles -
From a VR non-believer
A positive spin on things (or devil's advocate =P)