TikTok parent company ByteDance has acquired a VR startup called Pico as part of its efforts to diversify its portfolio following the success of its social video platforms.
ByteDance told CNBC that Pico’s “comprehensive suite of software and hardware technologies, as well as the talent and deep expertise of the team, will support both our entry to the VR space and long-term investment in this emerging field.” The company hasn’t offered additional details about the size or nature of the acquisition.
Pico currently offers four VR headsets: the G2 4K, G2 4K Enterprise, Neo 3 Pro, and Neo 3 Pro Eye. The company appears to be focused on the enterprise market, but it also supports SteamVR via the Pico VR Streaming Assistant software, and developers can use a variety of tools to create virtual experiences for its headsets.
That approach seems to be working. IDC said on Jun. 30 that Pico is the world’s third-largest VR manufacturer. Facebook led the market with its Oculus hardware, and another Chinese firm called DPVR claimed second place, but the firm said Pico showed promise because it offered both low-cost and high-end headsets.
ByteDance previously spent $4 billion to acquire Moonton, a mobile gaming studio, to expand into new product categories. So far the company’s platforms—TikTok, the Chinese equivalent called Douyin, and the Google News-like Toutiao—have mostly relied on social content. That isn’t necessarily the case with Moonton or Pico.
It’s also possible that ByteDance agrees with Facebook about the future of social media relying on VR, though, and buying Pico could make it easier for the company to bring its social platforms to the so-called metaverse. Facebook’s acquisition of Oculus made it the VR market leader; ByteDance just bought its way into third place.
