It's easy to grasp why stories about the price cuts carried out by Facebook Inc.'s (FB) Oculus unit for its Rift virtual reality headset and related Touch motion controllers suggest the cuts are proof that VR has failed to live up to its considerable hype. Industry unit sales are perhaps equal to about 1% of global smartphone sales, and that's after factoring cheap smartphone-paired headsets that are sometimes bundled with high-end phones.
This column originally appeared on Real Money, our premium site for active traders. Click here to get great columns like this.
But while near-term hopes for VR have come down a lot, Oculus' price cut isn't a sign that VR is failing as it is that the Facebook unit's original VR strategy -- trying to deliver a superior user experience by creating a costly headset that has to be paired with a high-end PC featuring a powerful Nvidia Corp. (NVDA) or AMD Inc. (AMD) GPU -- was a mistaken one for a market this young and immature. And that it's now trying to adapt.
About 15 months after launching the Rift to good but measured reviews, and about 7 months after launching the Touch to very good reviews, Oculus has slashed the price of a bundle featuring the two items by $200 to $399. The move comes after Oculus cut the Rift and Touch's standalone prices by $100 apiece in March, to $499 and $99.
Oculus says the new price cut is only good for six weeks. But a discount this large, and which lasts for such an extended amount of time, is typically followed by either a permanent cut or the discontinuation of the hardware in question in favor of a newer model. With Oculus having signaled that a second-generation Rift won't be arriving before 2019, the former seems more likely.
A permanent Rift/Touch price cut also makes sense in light of how the Rift occupies a niche within a niche right now, thanks in part to stiff competition. Research firm IDC estimates that just 99,000 Rift units were shipped in Q1, giving Facebook a 4.4% VR unit share.
IDC thinks Samsung was the market leader on a unit basis, estimating the company's $99 Gear VR headsets -- they're powered by Oculus software, and rely on high-end Samsung phones to supply a display and processing power -- recorded 490,000 shipments. Sony Inc. (SNE) was the presumptive revenue leader, with the company estimated to have shipped 429,000 units of $399 PlayStation VR headset, which works with PlayStation 4 consoles. And HTC was estimated to have shipped 191,000 units of its $799 Vive headset, which like the Rift needs to be paired with a PC.
Clearly, the VR headset market has been evolving differently than Oculus once hoped. Shipments are lighter than VR evangelists hoped, and a large chunk of them involve cheaper smartphone and console-paired headsets. A key culprit behind both of these trends: The user experience delivered by modern-day VR headsets, whether the Rift, the Gear VR of something in between, remains far from ideal.
In particular, the subpar display resolutions provided by today's headsets -- generally in the 1080p or 2K resolution range -- can't help but disappoint those used to seeing sharp, unpixelated images on their phones, tablets and PCs. The closer a display is to a user's eyes, the more pixels it needs to pack per square inch to provide a sharp image. That's why a 5 or 6-inch smartphone display needs a much higher pixel density than a typical 4K-resolution TV, and why VR headset displays need much higher densities still.
Read more here:
Facebook's $200 Oculus Price Cut Sends a Powerful Message About Virtual Reality - TheStreet.com
- UNL program using virtual reality to enhance research - KOLN - May 13th, 2024 [May 13th, 2024]
- 3D augmented reality with regular glasses | Stanford News - Stanford University News - May 13th, 2024 [May 13th, 2024]
- LG Display's Research Results on OLEDoS for VR Selected as Distinguished Paper at SID Display Week 2024 - PR Newswire - May 13th, 2024 [May 13th, 2024]
- Full-colour 3D holographic augmented-reality displays with metasurface waveguides - Nature.com - May 13th, 2024 [May 13th, 2024]
- The Future of Onboarding: Inside Serviceplan's VR-Based Employee Integration | LBBOnline - Little Black Book - LBBonline - May 13th, 2024 [May 13th, 2024]
- Virtual reality space experience returns to Silver Street Studios - Houston Chronicle - May 13th, 2024 [May 13th, 2024]
- Rain Technology to Unveil New Anamorphic-XR Optical Engine at Display Week 2024 - Display Daily - May 13th, 2024 [May 13th, 2024]
- Virtual reality used as a tool for brain health at assisted living center - Eyewitness News 3 - May 13th, 2024 [May 13th, 2024]
- Virtual Reality in Gaming Market to Reach US$75 Billion by 2028 - Analytics Insight - May 13th, 2024 [May 13th, 2024]
- Disney+ to release VR Marvel series exclusively for Apple Vision Pro - CyberNews.com - May 13th, 2024 [May 13th, 2024]
- Startup aimed at VR entertainment in cars files for insolvency - PhoneArena - May 13th, 2024 [May 13th, 2024]
- After Decades of Promise, the Virtual Reality Era Has Finally Arrived - Kiplinger's Personal Finance - May 13th, 2024 [May 13th, 2024]
- Hahnville senior signs with virtual reality gaming company - St. Charles Herald Guide - May 13th, 2024 [May 13th, 2024]
- Sandbox VR Forges Franchise Partnership with Apparel Group to Pioneer Virtual Reality in the Middle East - Business Wire - May 13th, 2024 [May 13th, 2024]
- Best VR games in 2024 - TechRadar - May 13th, 2024 [May 13th, 2024]
- Researchers rely on Virtual Reality as a complementary therapy for eating disorders - MIXED Reality News - May 13th, 2024 [May 13th, 2024]
- Beyond therapy: Virtual reality shows promise in fighting depression - Medical Xpress - May 13th, 2024 [May 13th, 2024]
- Apparel Group And Sandbox VR Announce Partnership - Retail & Leisure International - Retail & Leisure International - May 13th, 2024 [May 13th, 2024]
- Batman returns to VR - theSun - May 13th, 2024 [May 13th, 2024]
- Virtual Reality Shows Promise in Treating Depression - Neuroscience News - May 13th, 2024 [May 13th, 2024]
- Augmented And Virtual Reality in Manufacturing Market Size, Share And Growth Analysis For 2024-2033 - EIN News - May 13th, 2024 [May 13th, 2024]
- Sandbox VR Announces U.S. Franchise Initiative and International Deal - Franchise Times - May 13th, 2024 [May 13th, 2024]
- MINI Mixed Reality Experience: Driving into the Future. - BMW Press - May 13th, 2024 [May 13th, 2024]
- Virtual reality project will allow users to witness October 7 first hand - The Jewish Chronicle - May 13th, 2024 [May 13th, 2024]
- Spin Rhythm XD getting PlayStation and VR ports this summer - Niche Gamer - May 13th, 2024 [May 13th, 2024]
- Students at the Hong Kong University of Science and Technology use virtual reality headsets in class - Islander News.com - May 13th, 2024 [May 13th, 2024]
- SFU SIAT researcher uses virtual reality to help teen mental health - Simon Fraser University News - May 13th, 2024 [May 13th, 2024]
- The Navy Brings Training to the Fleet With VR - ATD - May 13th, 2024 [May 13th, 2024]
- Manchester Airport launches gaming area with virtual reality escape room Business Traveller - Business Traveller - May 13th, 2024 [May 13th, 2024]
- Can virtual reality help ease the end of life? - Universit de Montral - May 13th, 2024 [May 13th, 2024]
- Fans still waiting for a virtual reality view of the Buffalo Bills' new ... - Buffalo News - November 28th, 2023 [November 28th, 2023]
- Immerse yourself in new, augmented worlds - University of Miami: News@theU - November 28th, 2023 [November 28th, 2023]
- Who are the leading innovators in vehicle digital twins for the ... - just-auto.com - November 28th, 2023 [November 28th, 2023]
- How Virtual and Augmented Reality Are Redefining Construction - TimesTech - November 28th, 2023 [November 28th, 2023]
- Virtualware Appoints VRARA's John A Cunningham to Advisory Board - XR Today - November 28th, 2023 [November 28th, 2023]
- University Project Aims to Dissolve Borders Between Virtual and ... - XR Today - November 28th, 2023 [November 28th, 2023]
- Are real cadavers better than virtual ones? - Slate - November 28th, 2023 [November 28th, 2023]
- Samsung Glasses could be the name of a new pair of Samsung ... - TechRadar - November 28th, 2023 [November 28th, 2023]
- The Best Augmented Reality Accessories for AR Immersion - XR Today - November 28th, 2023 [November 28th, 2023]
- The best VR apps for 2022 | Digital Trends - February 18th, 2023 [February 18th, 2023]
- What is virtual reality? - TechTarget - February 18th, 2023 [February 18th, 2023]
- Forget the metaverse, Sony's PlayStation VR2 will make you a virtual reality believer again - British GQ - February 18th, 2023 [February 18th, 2023]
- Time to play! New virtual reality gaming coming to Northern Virginia - WUSA9.com - January 31st, 2023 [January 31st, 2023]
- Virtual reality training content launched for footwear and leather sector - The Hindu - January 31st, 2023 [January 31st, 2023]
- Texas A&M researchers are using multisensory virtual reality to help NASA astronauts - KAGSTV.com - January 31st, 2023 [January 31st, 2023]
- Hollywoods Virtual Reality Guru and American Millionaire Expanded His Soccer Portfolio to Europe With a Deal Worth $940 Million - EssentiallySports - January 8th, 2023 [January 8th, 2023]
- TikTok owner ByteDance takes first step into virtual reality with ... - December 26th, 2022 [December 26th, 2022]
- Virtual Reality inspires students to think about long-term careers - Turn to 10 - December 21st, 2022 [December 21st, 2022]
- Virtual Reality Arcade with Best VR Game Experiences - Main Event - December 12th, 2022 [December 12th, 2022]
- Virtual Reality - reddit - November 16th, 2022 [November 16th, 2022]
- The Future Of Virtual Reality (VR) - Forbes - November 16th, 2022 [November 16th, 2022]
- Virtual Reality (VR) For Professional Workflows | NVIDIA - October 28th, 2022 [October 28th, 2022]
- Virtual reality in fiction - Wikipedia - October 28th, 2022 [October 28th, 2022]
- Meta will release a new consumer-grade VR headset next year - TechCrunch - October 28th, 2022 [October 28th, 2022]
- Virtual Reality [VR] Market Size & Share | Forecast Report, 2029 - October 25th, 2022 [October 25th, 2022]
- Virtual Reality in the Healthcare Industry - VISUALISE - October 25th, 2022 [October 25th, 2022]
- Virtual Reality vs. Augmented Reality vs. Mixed Reality - Intel - October 25th, 2022 [October 25th, 2022]
- Applications Of Virtual Reality - Virtual Reality Society - October 25th, 2022 [October 25th, 2022]
- The Global Augmented Reality & Virtual Reality In Manufacturing Market size is expected to reach $27.9 billion by 2028, rising at a market growth... - October 25th, 2022 [October 25th, 2022]
- We Met in Virtual Reality Explores the Potential of the Metaverse - Seven Days - October 19th, 2022 [October 19th, 2022]
- What If the Metaverse Is Better Without Virtual Reality? - WIRED - October 19th, 2022 [October 19th, 2022]
- XRHealth and HTC Introduce The First Distraction Therapy Virtual Reality Platform to Improve Patient Experience During Painful or Anxiety Provoking... - October 19th, 2022 [October 19th, 2022]
- Department of Corrections Introduces Virtual Reality Technology to Augment Programming for Incarcerated Parents and Their Children - Pennsylvania... - October 19th, 2022 [October 19th, 2022]
- Arden Bendler Browning conquers virtual reality, Luve More LC + Thinkers Makers Society, and opportunity - theartblog.org - October 19th, 2022 [October 19th, 2022]
- How Virtual or Augmented Reality Can Help Your Packaging Line - Packaging Digest - October 19th, 2022 [October 19th, 2022]
- A marriage of virtual reality and physical therapy: Immergo Labs emerges from its UCSC roots - Lookout Santa Cruz - October 19th, 2022 [October 19th, 2022]
- Senior living residents explore the world through virtual reality - Rocky Mountain PBS - October 19th, 2022 [October 19th, 2022]
- Orthopedic Residency Program and PrecisionOS Team up For Exclusive 3-Year Collaboration: Virtual Reality Development and Curriculum Integration - PR... - October 19th, 2022 [October 19th, 2022]
- 6 Insightful Construction XR Cases to Read in 2022 - XR Today - October 19th, 2022 [October 19th, 2022]
- Video footage emerges from an MMA event that put virtual reality users into the thick of the fighting action - Yahoo News - October 19th, 2022 [October 19th, 2022]
- Carmack: Theres a bunch that Im grumpy about in virtual reality - Ars Technica - October 19th, 2022 [October 19th, 2022]
- The Peripheral Co-Creator on the Shows Line Between Reality & Virtual Reality - TV Insider - October 19th, 2022 [October 19th, 2022]
- Clarkson's Dr. Dana Barry Gave a Presentation at International Conference in Italy - Clarkson University News - October 19th, 2022 [October 19th, 2022]
- Apple VR glove with finger- and hand-tracking patent hints at companion accessories for the "Reality Pro" headset - Notebookcheck.net - October 19th, 2022 [October 19th, 2022]
- Virtual reality spectacle of 2010 sockeye run returns to Shuswap Salmon Arm Observer - Salmon Arm Observer - October 19th, 2022 [October 19th, 2022]
- The virtual reality push brings together Microsoft, Meta and the art of war - Stuff - October 19th, 2022 [October 19th, 2022]
- What Is Virtual Reality All About? - Oculus VR - September 20th, 2022 [September 20th, 2022]
- What Is Virtual Reality? | Tech & Learning - September 20th, 2022 [September 20th, 2022]
- 10 Advantages And Disadvantages Of Virtual Reality (2022) - September 20th, 2022 [September 20th, 2022]
- Insights on the Tactile Virtual Reality Global Market Research Report to 2027 - Growing Advancements in Virtual Reality Products & Rising... - September 20th, 2022 [September 20th, 2022]