Facebook has slashed the price of their Oculus Rift Bundle, which includes Rift, Touch Remote controls, a few accessories, and online games, to $399. This is the second time period Facebook decided to cut Oculus Rift’s expense this year and the third reduce since its launch.

Source: Oculus.com

The Rift+Touch Controllers Bundle started off at $798, next came down to $598 and now there is moved further down to $399. That’s a steep downward-sloping price curve for just a product that was released only a year ago. Though Facebook says that this can be only a limited time offer, more often than not these limited period offer charges determines future pricing as well as promotional strategies.

The VR headset information mill waiting to explode over the next several years. Research firm IDC expects VR headsets to do a nine-fold jump from $2.One billion in 2016 to $18.Half-dozen billion in 2021. Though the phone numbers look rosy, things are never ever easy in the hardware marketplace; and it gets even difficult if you are a software maker endeavoring to do hardware.

Samsung dominated the particular VR headset market during the primary quarter of this year (Q1-17) transport 490,000 units, followed by Sony models with 429,000 units. The all new htc came in third, selling 191,1,000 Vive headsets, and then came Fb with 100,000 Rifts distribution during the first quarter.


Sony Ps3 VR

Today, we are announcing that the Dsi VR headset will launch with October of this year for your suggested retail price of Dollars $399 / CAD $549 wrote Andrew House President as well as Global CEO before the launch (October 2016)

Sony’s PlayStation VR already costs $399, but you need have PS4. However that was not at all an issue designed for Sony because, a few days ago, The sony laptops said that it has sold 58.4 million PS4 gaming consoles inside the three years after its launch. Sony kept the price small, targeted its own customers plus walked away with four times the volume of Facebook’s Oculus Rift during the first 1 / 4.

It’s not really a surprise that Fb decided to price it in $399 right where Sony has stationed itself because Facebook is going down the price chart wanting that volume goes up. Fb reported revenues of $8.032 mil during the first quarter, 49% growth compared to the previous quarter since the company keeps more than increasing its revenue every 24 months.

Given a choice between revenue and market share in the VR headset market place, Facebook has a lot of reasons to pick the latter because dropping $100 on 100,000 unit size is just ten million dollars, handful of drops in Facebook’s fast-growing revenue bucket. And let’s not forget that this demand curve tends to purchase as the price keeps proceeding lower.

Facebook’s continuous slashing of costs shows that the company is ready for your fight with established product manufacturers. It’s way too beginning but it’s a bet this is a start. Facebook will be slowly being taught the hard instruction of the cutthroat world of units.

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