Mark Zuckerberg made a $2 billion bet on a virtual-reality headset called the Oculus Rift, brainchild of 22-year-old Palmer Luckey, who sold his Kickstarter-funded breakthrough to Facebook this spring. With the Rift about to hit the market, and the competition heating up, Max Chafkin reports on what lies ahead. BY MAX CHAFKINPHOTOGRAPHS BY ANNIE LEIBOVITZ The first time Mark Zuckerberg put on the awkward headset he knew. This is ready, he thought. This is the future.
It looked futuristic, but not pretty—the kind of thing a teenager might create to approximate his vision of the future, which, in fact, is exactly how this particular device had come into being.
The Rift’s creator, Palmer Luckey, was a 17-year-old sci-fi geek when he started building the prototype in his parents’ garage, in Long Beach, California. He took it to the crowd-funding platform Kickstarter, where he raised an astonishing $2.4 million, and then to Silicon Valley, and now, just four years later, here it was sitting on the face of the most powerful man in the technology world.
Zuckerberg was in the Menlo Park Facebook headquarters, in the office of C.O.O. Sheryl Sandberg, with his deputies, chief product officer Chris Cox and chief technology officer Mike Schroepfer.
They’d picked Sandberg’s office because it had blinds, unlike the glass rectangle where Zuckerberg works.
Zuckerberg’s fishbowl office makes sense for a man who has dedicated his career to helping people share aspects of their lives, but the sight of the Facebook C.E.O. with a screen on his face was at that point best kept a secret.
In a sense Zuckerberg was not in Sandberg’s office anyway. He was in another universe entirely. His attention was on a ruined mountainside castle as gleaming snowflakes fell all around him.
Wherever he looked, the scene moved as his head did. Suddenly he was standing face-to-face with a giant stone gargoyle spouting lava.
“Wow,” Zuckerberg said, removing the headset. “That was pretty awesome.”
It was January 2014, and the Facebook C.E.O. was preparing to celebrate two milestones: Facebook’s 10-year anniversary and his own 30th birthday. For years, Zuckerberg had pushed, almost single-mindedly, for growth.
With Sandberg’s help he had transformed Facebook into a communications platform that hundreds of millions of people essentially keep open on their phones all the time.
“When you get started as a college student you limit your scope,” he says. At first, “it’s like, ‘I’m going to build this thing for the community around me.’
Then it’s ‘I’m going to build this service for people on the Internet.’ But at some point you get to a scale where you decide we can actually solve these bigger problems that will shape the world over the next decade.”
Lately he’d been thinking about what should come next. What, he’d been asking, is the next great computation platform?
What comes after the smartphone? Zuckerberg believed that the answer was headsets that provide “immersive 3-D experiences”—movies and television, naturally,
but also games, lectures, and business meetings. These headsets would eventually scan our brains, then transmit our thoughts to our friends the way we share baby pictures on Facebook today.
“Eventually I think we’re going to have technology where we can communicate our full sensory experience and emotions to someone through thought,” he told me in an interview in his office.
Then he added, helpfully, “There’s a lot of interesting research into that, where people have some band on their head…. You can look into it if you’re interested.”
It sounded a little bit insane, but Zuckerberg wasn’t joking. “There are certain things in the future that you know will happen,” he continued. “The real challenge is figuring out what’s possible now and how exactly do you make it.”
And now here it was: the Oculus Rift, which Facebook will begin shipping to customers early next year. It isn’t the first virtual-reality (V.R.) headset to hit the market, but at around $1,500 for the device and the computer you need to run it,
it will be the first that is both sophisticated and relatively inexpensive. (Oculus helped create a much cruder $200 face mask to be used with Samsung cell phones.)
It’s also the first headset that doesn’t give users motion sickness.
arch 2014, Zuckerberg announced that he would buy Oculus VR for more than $2 billion, and suddenly the question of what is possible now was not so hard to predict.
The top two manufacturers of video-game consoles—Sony and Microsoft—are both preparing to release their own headsets in the next year.
And just months after the Oculus acquisition was announced, Facebook’s chief competitor, Google, unveiled a virtual-reality-on-the-cheap offering, Google Cardboard, which involves slipping a smartphone into a headset made of a few dollars’ worth of corrugated paper.
The press called it “Oculus Thrift.”
Perhaps most significantly, Google and others have made a $542 million investment in Magic Leap,
a secretive South Florida-based company run by Rony Abovitz, a 44-year-old eccentric genius.
The company is likely years away from releasing a product but it seems in some ways more exciting than the Oculus Rift because it promises to employ “augmented reality” (A.R.)—creating realistic holograms superimposed on your field of vision—instead of virtual reality.
“A frenzy” is how Thomas Tull, the C.E.O. of Legendary Entertainment, describes the enthusiasm on the part of Magic Leap’s investors, who include, in addition to Google and himself, such heavyweight technology investors as Andreessen Horowitz.
Tull is also a proud investor in Oculus and believes that the impact of virtual reality, no matter who wins, will be much more significant than past breakthroughs such as HDTV and 3-D movies.
“Once you see virtual reality done well,” he says, “you take off the headset and say, ‘There’s really a chance here to do something completely different.’ ”
Will consumers, who just a year ago failed to embrace Google Glass, buy these new face-mounted displays? Hollywood and Silicon Valley seem to think it isn’t even a question anymore. The race is on.
It was a few days before Independence Day, and I was inside Palmer Luckey’s video game, standing in a sparsely furnished room at a table covered with slingshots, balls, remote-control cars, and Ping-Pong paddles.
On the other side of the table was Luckey—or rather a bluish head and a pair of hands that floated in space, and from which his boyish voice emanated. “Have you seen The Matrix?” he asked, referring to the 1999 science-fiction movie.
He snapped his blue video-game fingers, making several dozen M-80 firecrackers appear on the table. “We call this Roman Candle Space Party.”
The prototype he was showing me was called Toybox, the name being a nod to the slingshots and firecrackers and maybe also to the fact that virtual reality itself, despite the hype and the billions of dollars at stake, is still in a juvenile state.
“The goal is to have two people [in different locales] feel—really feel—like they’re in the same place together,” said Luckey.
How does it work? A sensor is trained on each player, who wears a headset with a microphone, and two handheld controllers to sense the arm movements. All of this is transmitted as a ghostly blue avatar into the other player’s headset.
Call to mind a realistic computer-animated movie and most people will imagine an absurd degree of verisimilitude: for instance, the flowing, wild locks of the main character in Disney’s Brave, where every strand of red hair seems distinct.
By this standard, Toybox doesn’t even rate. The firecrackers Luckey conjured looked geometric; the table was not wood or metal or glass—it was simply gray. And yet there was something about seeing even this crude animation all around me, no matter where I looked, that made it feel more real than any animation I’d ever seen.
Market Data 
Markets 
AI
