ByteDance, the owner of TikTok, has purchased Pico, the third-largest VR headset maker globally in the first quarter of 2021. Pico is a Chinese VR headset developer that was founded in 2015. While the company has mainly sold headsets for retail in China, it has managed to carve out a niche as a business-to-business VR company. Pico's flagship VR headset, the Neo 3, has some impressive stats, boasting a 4K display and a 72/90Hz refresh rate.
It was first revealed last Friday that acquisition talks between the two companies were taking place. No timeframe was given as to how long the talks would continue for, so it comes as a surprise that the purchase was conducted and announced so quickly. ByteDance's acquisition of Pico is reminiscent of Facebook purchasing Oculus in 2014, opening up the possibility that TikTok might also now be looking toward a metaverse future similar to Facebook.
ByteDance shared in a statement that Pico’s “comprehensive suite of software and hardware technologies, as well as the talent and deep expertise of the team" will help the company to enter the VR space, according to CNBC. The acquisition of Pico shows a push to diversify ByteDance's assets, with the statement noting this is part of a "long-term investment in this emerging field." With ByteDance's acquisition of mobile games developer, 'Moonton' in March for $4 billion, it seems as though the tech giant is now looking to make a bigger push into the mobile and virtual reality spheres.
ByteDance Following Facebook's Lead?
There is no telling the lasting impact this could have on the world of VR. This space is already very crowded with Facebook's Oculus, Sony's PSVR, HTC's Vive, and the rumored Apple VR on the horizon, However, and considering Pico made its name globally as a business-to-business VR developer, it stands to reason that the company will continue with this approach and use its technical expertise to create the best content it can for businesses. This would be a niche that ByteDance could use to stand out from other VR businesses, as good software is sorely lacking in the field.
Alternatively, with Pico being the world's number three headset brand, ByteDance may end up using the purchase as a vehicle to bring high-quality Chinese-developed VR applications to all corners of the globe. Not to mention, the TikTok owner could also find success at the retail hardware level if it can release VR headsets at a cheaper price point than its competitors.