Posts Tagged‘playstationvr’

The Real Cost of the Oculus Rift’s Price.

The Oculus Rift Kickstarter campaign showed that there was a want for virtual reality to start making a comeback. However the other side of that equation, the ones who’d be delivering experiences through the VR platform, weren’t really prepared to capitalize on that. There are numerous reasons for this but mostly it comes down to consumer VR still being a nascent industry with the proper tooling still not there to make the experience seamless. Unfortunately it’s something of a chicken and egg problem: standards and tooling won’t fully emerge until there’s a critical mass of users and those users won’t appear until those standards are in place. This is why the high price of the Oculus Rift consumer model costs far more than its sticker price.

Oculus Rift

Many looked towards the Oculus Rift as the definitive VR headset, something which Oculus has obviously taken into account when designing it. Whilst I, as an early adopter of many pieces of technology, may appreciate the no-holds-barred approach for devices like this I know this limits broader appeal. Whilst this is sometimes a good strategy in order to get your production line stood up (ala Tesla when they produced the Roadster and then the Model S) the Oculus already had that in the previous two iterations of the dev kit. I think what many were expecting then was the Model T of VR headsets and what they got instead was a Rolls Royce Phantom.

However Oculus is no longer the only name in the game anymore with both the HTC VIVE PRE and the PlayStationVR headsets scheduled to come out in the first half of this year. Both of these are targetting at much more reasonable price point, although they admit that their headsets are not as premium as the Oculus Rift is. Whilst Oculus’ preorders may have surpassed their expectations I still feel that they alienated a good chunk of their market going for the price point that they did. For those who balked at the Oculus’ price the other two headsets could prove to be a viable alternative and that could spell trouble for Oculus.

Whilst Oculus won’t be going anywhere soon as a company (thanks entirely to the Facebook acquisition) they will likely struggle to cement their position as the market leader in the VR headset space. Indeed the higher price point, which according to Oculus is the bare minimum they can charge for it, won’t come down significantly until economies of scale kick in. Lower sales volumes means that takes much longer to come into effect and, potentially, HTC and Sony could be well on their way to mass produced headsets that are a fraction the cost of the Oculus.

In the end it comes down to which of the headsets provide a “good enough” experience for the most attractive price. There will always be a market for a premium version of a product however it’s rare that those models are the ones most frequently purchased. Oculus’ current price point puts it out of the reach of many, a gap which HTC and Sony will rush into fill in no short order. The next year will then become a heated battle for who takes the VR crown, showing which product strategy was the right one. For now my money is on the cheaper end of the spectrum and I’m waiting to be proved wrong.