Microsoft is adding another Startup to its growing virtual reality (VR) portfolio. The company just has acquired a VR-focused startup to build out hardware and software ecosystem around Windows Mixed Reality headsets.
According to TechCrunch, the Redmond-based company announced that it had acquired the virtual reality social networking startup AltspaceVR. However, Microsoft didn’t disclose the financial terms of the transaction, leaving no clue about the cost of the transaction. The company made the big announcement during its Windows Mixed Reality Strategy event in San Francisco.
About the VR startup
Founded in 2013 and based in Redwood City, California, AltspaceVR is a virtual reality software company that specializes in bringing two-dimensional web content into shared spaces and creating fully holographic experiences. The company’s technology allows the users to watch streaming contents and play games, all together inside the virtual reality headset.
Before its big deal with Microsoft, the startup has managed to raise a total of $15.7 million in funding from 3 rounds from 19 investors. According to CrunchBase, the startup's investors include Adeyemi Adjao, Comcast Ventures, Dolby Family Ventures, Formation 8, Foundation Capital, GV, Haystack, Ken Arnold, Lux Capital, Marc Bell Ventures, Maven Ventures, Promus Ventures, Raine Ventures, Rothenberg Ventures, and StartCaps Ventures.
As mentioned earlier by TechCrunch, the startup ran into financial trouble and could not afford to keep the light running anymore. In a July 28 blog post, it made a huge announcement that it was shutting down after a new funding round had fallen.
Additionally, the startup also announced that it had only 35,000 monthly active users and has gone into skeleton crew to keep the mobile service running.
Then just a few days later, AltspaceVR got some good news. The startup announced that it was keeping the light running after it received help from a third party.
The deal is expected to beef up Windows Mixed Reality headsets. The company is aiming to distinguish its Windows 10-powered VR headsets from the rest of the competition.
Microsoft Mixed Reality headset is slated to arrive on October 11, and pre-order starts now.
Unfortunately, Microsoft is not the only company that betting big on the VR technology. Social media giant Facebook is also on the hunt. The Palo Alto company is scheduled to host its Oculus Connect conference on October 11, where it expected to make some big announcement about it flagship VR headset.
In other Microsoft-related news
The software giant has finally announced plans to shut down its Groove music streaming service. After years of endless struggle, the company has finally ended its music ambition and admitted defeat; Groove is no more.
According to Forbes, Microsoft has decided to end its Groove streaming service and pursue another big opportunity.
The company announced plans to team up with Spotify to help users transfer contents they saved, downloaded and even playlists they created.
The software giant has described the latest partnership with Spotify as a positive one, claiming that it was excited to bring the big news of the partnership with Spotify, which currently the largest music streaming service in the market.
