The Swiss firm expects Oculus to change its business model, charging developers to create content for its devices, just as Sony, Microsoft and Nintendo do.
UBS has changed its estimate for the shares of Facebook, from $155 to $165, and has sent an informative note to its customers to clarify the approach, since they think that Facebook is making a risky bet on cutting-edge technologies that may never become part of the company’s core business, thus hindering revenue growth. UBS is confident in the Facebook roadmap and believes that these fears of its clients are unfounded and that these big bets will bring great benefits, as reported by Business Insider.
“We believe that in the next 2-5 years, FB Messenger, WhatsApp and Oculus will shift from a focus focused on user growth and investments in the ecosystem to ways to monetize within Facebook,” writes UBS. “We do not expect a significant revenue stream from these businesses in the medium term, but in the long term there are possibilities that they will offer multiple ways to monetize.” UBS expects that Oculus will eventually change its business model, charging developers to create virtual reality content for their devices, just as it happens in the world of consoles with Sony, Microsoft and Nintendo.
This vision of UBS regarding the new approach seems to coincide with what Jason Rubin, director of content at Oculus, commented a few days ago in an interview with GamesIndustry, that Facebook could stop investing in content once the ecosystem is established.