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posted by martyb on Tuesday July 11 2017, @09:34AM   Printer-friendly
from the just-pining-for-the-fjords dept.

Facebook has cut the price of the Oculus Rift for the second time this year. It debuted at $800, was cut to $600 in March, and is now $400. Is there real trouble in the virtual reality market, or is it just a normal price correction now that early adopters have been served?

It means that the Rift now costs less than the package offered by its cheapest rival, Sony, whose PlayStation VR currently totals $460 including headset and controllers.

Even so, it's not clear that it will be enough to lure people into buying a Rift. A year ago, our own Rachel Metz predicted that the Rift would struggle against Sony's offering because the former requires a powerful (and expensive) gaming computer to run, while the latter needs just a $350 PlayStation 4 game console.

Jason Rubin, vice president for content at Oculus, tells Reuters that the reduction isn't a sign of weak product sales, but rather a decision to give the headset more mass market appeal now that more games are available. Don't believe it: this is the latest in a string of bad news for the firm, which has also shut down its nascent film studio, shuttered in-store demo stations of its hardware, and stumped up $250 million as part of a painful intellectual property lawsuit in the last six months.

Here's a February story about the Oculus demo stations at Best Buy stores being shut down.

Previously: Facebook/Oculus Ordered to pay $500 Million to ZeniMax
Google Partnering With HTC and Lenovo for Standalone VR Headsets


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  • (Score: 3, Interesting) by takyon on Tuesday July 11 2017, @12:27PM (1 child)

    by takyon (881) <takyonNO@SPAMsoylentnews.org> on Tuesday July 11 2017, @12:27PM (#537554) Journal

    Here's some explanations for why Best Buy has survived:

    https://www.technologyreview.com/s/520821/best-buy-battles-back-online/ [technologyreview.com]
    http://www.startribune.com/to-boost-digital-sales-best-buy-turns-to-its-stores/212549391/ [startribune.com]
    https://www.cnet.com/news/best-buy-puts-stock-in-stores-in-battle-with-amazon/ [cnet.com]
    http://blogs.marketwatch.com/behindthestorefront/2014/05/22/best-buy-has-an-edge-over-amazon-as-stores-serve-as-shipping-hubs/ [marketwatch.com]

    Using your existing stores and distribution centers in order to get 2-day shipping to most online customers is a strategy also being used by Walmart. It was more of a pressing issue for Best Buy years ago than Walmart because lots of people get electronics online, not so much groceries - although that is shifting. Personally, I only use Best Buy when there is a deal for them on Slickdeals.net, but I could see other people putting them on equal footing with Amazon and Newegg. Amazon still has the edge but if your site is as easy to use as Newegg, then you don't really need a user account.

    So why don't Best Buy locations shutter the doors and turn off the A/C? I guess they do well with products that people want to see in person before they purchases, such as TVs or appliances. Laptops maybe, not sure about smartphones since people might go to the carrier's store instead.

    VR: Don't forget there are $0-15 tier Cardboard setups (NYT subscribers got it for free), $15-$30 Chinese garbage headsets for phones, and quality $70-$100 phone headsets like Google Daydream or Samsung Gear. All come way under the $400-800 + gaming PC prices of the premium headsets, and the intersection of people with a 5-inch+ smartphone and a few dollars to spend is pretty large. They can also be bundled with the phone for free, like Gear VR was.

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  • (Score: 2) by VLM on Tuesday July 11 2017, @12:42PM

    by VLM (445) on Tuesday July 11 2017, @12:42PM (#537560)

    Cardboard is like windows 3.1, everything I already need to do is optimized for the older technology (msdos then, plain android now) and the stuff they're trying to interest me in, either isn't interesting, or its a hard sell to push both something new AND a new UI technology simultaneously. So my cardboard sits on a shelf after a couple hours use. It doesn't do the stuff I'm already interested in, and I'm not interested in the limited stuff it can do.