Oculus Rift looking to hit $200 price point
The Oculus Rift is still going through the beta stages, as it shapes to be a full consumer product. Questions about when Oculus will release their commercial version and how much it will cost, thanks to co-founder Nate Mitchell.
Mitchell says the Oculus Rift will come at the lowest possible price point, between $200-$400. This will depend on a lot of factors, most importantly how much profit Oculus wants to take from each unit sold.
High end profits cost around $180 – $250 to make, but manufacturers and carrier sell them for around $700. This gives phone manufacturers a good lump sum of profit, to spend on growth in the market, advertising, R&D and expansion.
Oculus is looking for a 2015 commercial release date, we have heard this a number of times. Facebook has filled their coffers, now all Oculus need to do is bring a product to market that can sell a ton.
Oculus Looking To Budget
Offering the Oculus Rift at a cheaper price tag, like $200, might get more people interested in virtual reality. Currently, the market is quite small, but Sony, Valve, Samsung and Microsoft are all looking to expand the market in the next few years.
The issue with the $200 price tag is Oculus is gambling on an explosion in virtual reality. If this doesn’t happen, they are left with a sort of successful product, which will not make a lot of profit per unit, and a precedent on price for the next iteration.
We would rather see Oculus try a different approach, offering the Oculus Rift out for the same price as the developer edition, for $350. This would allow enthusiasts a taste of true VR and will give Oculus enough to continue research and development.
The flipside of this discussion is Oculus does not need any more funding. They have two billion from Facebook, more if needed, and they will not run out of money for a long time, as long as they remain successful in the industry.
Interview With Oculus Founders