The Oculus Rift Just Got a Lot Cheaper
The Oculus Rift pot just got even sweeter. In its debut it was selling for $599, and when the Oculus Touch controllers came out you could expect to shell out $199 on top of that. The next year we saw prices drop to $499, the controllers included, and then $399 about six months later.
You can pick up a Rift for $349, controllers and sensors included. This number is deep into value town.
Why would Facebook price their headset so low?
No doubt, they’re incredibly expensive to produce. The COTS products, the circuitry, the lenses, a microphone buried underneath—not to mention the sensors and controllers. And don’t forget that the teams of designers and engineers who put this product together need to feed their families too. Facebook is certainly not marking up this product very much.
Similarly, the Oculus Go, priced at $199, is well within reach of the average household—but at this value, the mark-up is infinitesimal. The Oculus Go is a standalone headset, one of the first of its kind, and developing this technology was not cheap.
But the fact of the matter is that Facebook doesn’t need to profit on VR today to keep beating earnings. They have platforms which are raking in billions of dollars in net earnings. and this money can go towards diversification, like their Oculus acquisition! Frankly, if they are even breaking even on the VR front, it is doing them well.
With their price points, they are looking to become the leader of VR. Providing a low entry point gets people into it—everyday people who never realized it would be their thing, but heck, they might as well give it a shot at this price. And with their platform becoming dominant over the industry, they will have a stranglehold over not just the hardware, but also the software and apps. Take Apple, who rakes in an outrageous 30% on app proceeds.
With more content and lower prices than ever, if you’ve been on the fence now is a better time than ever to make the purchase.