Meta's acquisition of VR studios comes under antitrust investigation

Meta Platforms is undergoing a re-examination by the Federal Trade Commission (FTC), and the $400 million acquisition Meta is advancing — the acquisition of VR fitness app Supernatural — could be delayed by a year or more, The Information reported.

Supernatural is a fitness experience-focused app where players can destroy targets and avoid obstacles by manipulating their Quest controller, which plays in a very similar way to Beat Saber, but the app focuses on fitness and nutrition recipes to maintain fan retention. It's worth noting that Supernatural is based on subscription services, and fans need to pay a certain monthly fee to access most of these features.

Led by Zuckerberg, Meta has defined itself as a meta-universe company since July, positioning itself no longer as a platform that focuses on social networks and instead merges the digital and physical worlds into one.

Prior to the name change, Meta had been acquiring companies related to the VR field to expand its internal VR R&D capabilities. One of the most notable acquisitions was the $2 billion acquisition of Oculus in 2014, and since then Meta has become one of the leading MANUFACTURERs of VR equipment, strengthening its VR capabilities through the continuous acquisition of small VR studios to Oculus.

In the planned acquisition of Supernatural, Meta is already acquiring 5 VR studios in succession.

In November 2019, Meta announced the acquisition of Beat Games, the developer of the VR music game Beat Saber, which at the time had a small studio with only eight employees and no venture capital.

In February 2020, Meta acquired VR game developer Sanzaru Games, a studio that has produced many games over the past decade, including Spyro 3 Reignited and Asgard's Wrath. The studio has produced VR for the Oculus VR platform and was the first developer to work with Oculus Studios.

In June 2020, Meta announced the acquisition of U.S. game studios Ready at Dawn to Oculus Studios, which has developed exclusive games such as God of War: Chains of Olympus for Sony.

In May 2021, Meta announced the acquisition of Downpour Interactive to the Oculus Studios group. Meta said at the time that Downpour Interactive was a leader in the VR industry and a model for developers working with loyal communities to create the best social and gaming experiences.

In June 2021, Meta acquired Big Box VR, the producer of the battle royale game POPLION: ONE, which operates in a similar model to Epic Games' Fortnite.

In June, Alex Heath, a reporter for The Verge, a reporter for the AMERICAN technology media, previously said on Twitter, "Facebook may have completed its monopoly before the VR industry was widely concerned." By the time regulators try to monitor Facebook's current monopolistic behavior, the company has adjusted its strategy to another emerging area. ”

Although the VR market is not large today, Meta dominates this area. According to IDC, Meta helped the VR device market grow to 2.2 million units in the second quarter, up 136.4% year-over-year. The VR market is expected to sell 8.4 million units by the end of the year and 26.7 million units by 2025, an annual growth rate of 36%. IDC also estimates that Oculus accounts for 75% of the VR headset market, making it the dominant platform in the space.

While the FTC may eventually approve the Supernatural deal, it proves that the FTC, along with many other organizations and governments, is closely watching Meta's move toward the so-called Metaverse vision, and Meta's strategic route of strengthening VR by acquiring start-up VR studios may be coming to an end.

Article reference source: https://seekingalpha.com/news/3781223-meta-platforms-is-being-probed-by-ftc-over-vr-deal Leifeng Network