streak byte dance, company The owner of the TikTok platform, took its first step into the world of Metaverse by acquiring the virtual reality startup Pico Interactive.
“Pico Interactive’s software and hardware, combined with its talent and expertise, supports our entry into the virtual reality space and long-term investment in this emerging field,” the company said.
A ByteDance spokeswoman said: “We are optimistic about the future of virtual reality and its alignment with our mission.
In April 2021, ByteDance invested about 100 million yuan in Mycodeview, the company behind Reworld, a rising competitor to current Roblox.
Pico Interactive continues to focus on the Chinese consumer market while retaining most of its employees. However, ByteDance has not made concrete plans for its VR products.
The deal – estimated by sources at about 772 million US dollars – comes after the entry of Internet companies such as Facebook, Apple and Huawei.
Claire Chow, an analyst at market research firm IDC, said: “Investment and support from internet companies are beneficial to the VR industry because of its new content and technologies. She noted that partnerships help build virtual reality systems.
Facebook was one of the first big names to enter the virtual reality space by buying virtual reality gaming company Oculus in 2014.
Huawei introduced VR Glass in 2019. While Apple confirmed that it acquired NextVR virtual reality company in May 2020.
And Facebook’s entry into the field of virtual reality has recently expanded to include metaverses. It is a concept that signifies the next phase of the Internet where our physical world is united with the virtual world.
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Facebook founder and CEO Mark Zuckerberg said in June that Facebook is setting up a team for its new vision for metaverse.
This came in conjunction with the presentation of Horizon Workrooms virtual office spaces this month using the company’s Oculus Quest 2 glasses.
Pico Interactive, founded in 2015 by Henry Chu Hongwei, employs 300 people and has offices in China, the United States, Spain, South Korea and Japan.
The company completed several rounds of financing in March, raising $67.23 million.
“The company continues to invest in virtual reality games and other consumer applications,” Hongwei said. And that while exploring the products of institutions.
The company plans to launch a new VR headset later this year called Neo 3.
ByteDance’s acquisition of Pico Interactive is an impetus to diversify its business. The move follows its March acquisition of a major game studio called Moonton for $4 billion. Where you are looking to expand into games.
With sales growing by 44.7 percent in the first quarter of 2021, Pico Interactive ranked third in the virtual reality glasses market, after Facebook and the Chinese company DPVR, with HTC and Sony on the list, IDC reported in a report June.
Global sales of virtual reality glasses are expected to rise to $28.6 million in 2025, according to the same report.
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