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AltspaceVR is now part of Microsoft

Social VR company saved from going out of business by acquisition deal

AltspaceVR has been acquired by Microsoft, a very positive outcome from what looked like a disastrous situation for the social VR company.

Back in July, it seemed very likely that AltspaceVR would cease to exist, as it struggled to find much-needed investment in the "general slowness" of the VR market. The Californian company went so far as to announce its closure, explaining that it couldn't "keep the virtual lights on any more."

However, a strong community reaction prompted a u-turn on that decision, the obvious affection for the platform attracting the interest of several unnamed "third parties." Apparently, one of the third parties was Microsoft.

In a blog post published yesterday, AltspaceVR confirmed that it has been acquired by Microsoft, as part of the tech giant's Windows Mixed Reality push.

"What a ride," AltspaceVR said in its statement. "We cried, we laughed, we overdosed on caffeine... but now we're dancing in our headsets."

The deal will not require AltspaceVR to change its name, and the company said that Microsoft's first priority is preserving the existing community that was under threat not so long ago.

Altspace added: "These first few months will focus on fostering our community and making sure AltspaceVR remains a friendly, welcoming and vibrant place to hang out in virtual reality."

AltspaceVR will continue to function in 2D on PC and Mac, and on HTC Vive, Oculus Rift, Daydream and Samsung Gear VR.

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Matthew Handrahan avatar
Matthew Handrahan joined GamesIndustry in 2011, bringing long-form feature-writing experience to the team as well as a deep understanding of the video game development business. He previously spent more than five years at award-winning magazine gamesTM.
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