Oculus Rift teardown shows bill of materials and manufacturing just slightly over 200$

[comicsansms]

21 minutes ago, zMeul said:

I'm guessing you conveniently forgot there was a kickstarter that got them nearly 2.5 mil USD?!

and they sold out to FaceBook for 2bil USD?!

 

ha!

So a kickstarter is going to pay for development and every expense on developing the rift? No it doesn't, you have to paydesigners, manufacturers, support staff, advertisement crew amoung other people, the kickstarter is to start an idea that cannot happen without people funding them, it is an assistance package, not life support. 

 

Yes the rift is expensive, but it is because it isn't mainstream so it has to have a high cost to be profitable.

 

Correct me if I am wrong, what does the shareholders being payed $2.5B to take it off their hands have to do with how much money is in Oculus? 

 

Anyway the Whole point of a business is to make money. That is it, nothing is special about it, do you complain that the super market and milk packaging plant makes 90% profit between the 2 of them? Do you complain that the guy who sells fishing bait makes 900% profit on selling the bait? No, just live your life, if it costs to much in your eyes buy something else or don't buy it, it's that simple. 

[zMeul]

1 minute ago, Comic_Sans_MS said:

Anyway the Whole point of a business is to make money.

SONY and MS aren't making money of their consoles!? oh yes they do

and guess what? they sold them at a loss .. boo fucking hoo FaceBook

[Master Disaster]

9 minutes ago, zMeul said:

I don't!?!!?

check my post above where I talk about SONY and MS selling their latest consoles at a loss 

do you know how many PS4 units SONY sold to date? above 40mil units: http://www.ubergizmo.com/2016/04/sony-40m-ps4-sold/

in two fucking years!

And please explain how that's relevant to this in any way? Last time I checked Rift wasn't a console?

 

Did you know that the reason I can't get hot chilies from my local supermarket because my butcher sells to much meat?

[dizmo]

17 minutes ago, zMeul said:

I don't!?!!?

check my post above where I talk about SONY and MS selling their latest consoles at a loss 

do you know how many PS4 units SONY sold to date? above 40mil units: http://www.ubergizmo.com/2016/04/sony-40m-ps4-sold/

in two and 1/2 fucking years!

 

 

 

Because they make money on monthly subscriptions. Does VR do that? No.

Would you like to pay $20 a month to use your Rift?

Selling anything at a loss is a horrible business model. Also, for the Vive, this would mean HTC would go bankrupt.

Sony and MS both have other product classes that bring in a huge bulk of their revenue. This is why they can afford to sell a product at a loss. Most other companies don't have that luxury. Believe me, if Sony only sold the Playstation, they wouldn't even consider selling it at a loss.

 

Sure, they sold 40 mil units. How much profit do you make when you're selling at a loss?
Oh, that's right. You just end up losing even more.

 

[comicsansms]

1 minute ago, zMeul said:

SONY and MS aren't making money of their consoles!? oh yes they do

and guess what? they sold them at a loss .. boo fucking hoo FaceBook

Sony and Microsoft have a wide selection of items that they make money off other than the consoles. Oculus really doesn’t. 

It is like the 85c loaves of bread and really cheap petrol from buying stuff at a super market, they may make fuck all on that (or even lose money on that) but they are getting more sales because of that. No one buys a PS4 and doesn't buy any games for it. 

[abazigal]

38 minutes ago, AresKrieger said:

Honestly I want the rift to fail since I hate facebook, so if they want to sell it overpriced and thus get less sales/adoptions overall let them it's not like the first gen of VR really performs well enough for me to care anyway tbh.

The first gen is likely targeted at early adopters and enthusiasts who don't mind paying a premium for the experience and putting up with drawbacks such as a limited selection of games.  We will probably see a price drop for the 2nd gen refresh once the ecosystem is mature enough for the mass market. 

[zMeul]

2 minutes ago, dizmo said:

Because they make money on monthly subscriptions.

PS3 didn't had subs and still sold a shit ton (86mil was the last tally)

and guess what? PS3 sold at a loss too

 

please stop apologizing for FB's greed

[dizmo]

2 minutes ago, zMeul said:

PS3 didn't had subs and still sold a shit ton (86mil was the last tally)

and guess what? PS3 sold at a loss too

 

please stop apologizing for FB's greed

Hopefully one day you realize companies exist to make money, and not to give people things they don't need for next to what it costs to make them.

Also, way to completely ignore the fact that Sony has other revenue streams.

[zMeul]

2 minutes ago, Comic_Sans_MS said:

Sony and Microsoft have a wide selection of items that they make money off other than the consoles. Oculus really doesn’t. 

bullshit!

if XBOX or PlayStation divisions were not making money, they would've been shutdown by now

just look at the recent MS' Lumia fuck-up

[comicsansms]

Just now, zMeul said:

PS3 didn't had subs and still sold a shit ton (86mil was the last tally)

and guess what? PS3 sold at a loss too

 

please stop apologizing for FB's greed

$70 controllers. 

$50 controller docking stations

$90 games. 

$100 1TB external HDDs

That is where the money is coming from

[Derangel]

Just now, zMeul said:

PS3 didn't had subs and still sold a shit ton (86mil was the last tally)

and guess what? PS3 sold at a loss too

At the start. It did not sell for a loss the entire time it was made. The PS3 also did (and still does) have PS+. It just wasn't required for online play like it is on the PS4.

[zMeul]

3 minutes ago, Comic_Sans_MS said:

$70 controllers. 

$50 controller docking stations

$90 games. 

$100 1TB external HDDs

That is where the money is coming from

cut the crap! I have a PS3

 

PS3 works with 3rd party controllers

you don't need a docking station

the games weren't 90$! a brand new one was 60$ and you had the possibility to buy used (it still is a huge market)

you don't need a external HDD; the PS3 if need be, works with any external HDD or thumb drive as long as it's FAT32 formatted

[Derangel]

Just now, zMeul said:

bullshit!

if XBOX or PlayStation divisions were not making money, they would've been shutdown by now

just look at the recent MS' Lumia fuck-up

Dude. MS lost money on games for well over decade and still isn't making them massive amounts of money. Why do you think the rumors of investors pressuring MS to spin off the Xbox division keep persisting? MS managed to hide a lot of the loses from the Xbox division due to it being part of their over-all entertainment division and they have tons of other things they make money on in order to make up for any of those loses. The Lumia fuck-up wasn't a simple case of them losing some money for something that will turn out well in the end, it was a colossal mistake that would never turn into anything but a money pit./

[comicsansms]

2 minutes ago, zMeul said:

cut the crap! I have a PS3

 

PS3 works with 3rd party controllers

you don't need a docking station

the games weren't 90$! a brand new one was 60$ and you had the possibility to buy used (it still is a huge market)

you don't need a external HDD; the PS3 if need be, works with any external HDD or thumb drive as long as it's FAT32 formatted

I agree with what you are saying that you don't need to buy the 1st party items, but people do buy the 1st party items. If Sony and Microsoft were not making any money off the game consoles would they continue selling game consoles?

[Tech_Dreamer]

pretty sure most of the electronic hardware work under the same principle  to keep a reasonable profit margin.

[zMeul]

1 minute ago, Comic_Sans_MS said:

If Sony and Microsoft were not making any money off the game consoles would they continue selling game consoles?

they are making money from the SW, the games they sell (sure subs too), not from the HW

in recent times, quite possibly. the manufacturing costs went down

[zMeul]

6 minutes ago, Derangel said:

Why do you think the rumors of investors pressuring MS to spin off the Xbox division keep persisting?

the talks about XBox spin were only after the fuckup with always on-line Don Mattrick had envisioned - that costed them dearly

[manikyath]

bill of materials rarely works out.

 

the bom cost on most phones is like... around $100 for a $700 smartphone.

[RagnarokDel]

Actually they probably dont make much on a per unit basis. at $206 in parts, that means that once it hits the shelves and everyone gets their cut, they probably make around $50 per unit. 

[vorticalbox]

49 minutes ago, zMeul said:

I haven't touched the SW side and won't touch it

 

the HW cannot be fixed once it's delivered, it can only be recalled

 

---

 

they are making huge profit on each Rift sold and they are making profit on the SW that goes trough their Oculus store - otherwise it would've failed already

regardless of whether you "won't touch it" it irrelevant. The cost to that develop and test the software has to be recovered as does marketing and R&D and that typically the cost of manufacture is around 50% of the materials cost that would bring the unit to be build to about 300.

[Derangel]

Just now, zMeul said:

the talks about XBox spin were only after the fuckup with always on-line Don Mattrick had envisioned - that costed them dearly

 

There were talks about it before that as well. Not to the same extent, but it wasn't a new rumor.

[Briggsy]

It's why I still use a DK2. Support for VR is lackluster in the AAA realm, and headsets cost as much as a midrange Gaming PC. I would (figuratively) give my left nut to play Soma in VR. imo, the gaming genres that benefit the most from VR are 3: Horror, racing/flight sims and Adventure/exploring type sims, in that order.

 

The majority of use cases outside gaming either involve science, architecture/design or porn, or some creative mix of these. Don't get me wrong, I often will use the rift for a day or two to get my fix, and then go a month without using it, and that's mostly just because there's so little content still that isn't a tech demo.

 

I really want to see the horror genre dive deep into VR, because that is where the experience is 100x more frightening than on a 2D screen. Even a short little demo like "the visitor" is capable of causing you to void your bowels if you are unprepared.

 

But yeah... until Oculus and HTC get their act together and make their products affordable, game development will be mostly tech demos with no staying power, and games that have really enthusiastic and capable developers. Its really (really really) sad that Alien isolation wasn't kept up to date with current VR support, that was a golden example for its time.

[atrash]

This thread..lol. Fuck profits. Everything must be sold at BOM costs or you're greedy and your company needs to die.

 

As if the idea/tech just appeared out of thin air and you just sell them to the public.

 

 

[manikyath]

5 minutes ago, atrash said:

This thread..lol. Fuck profits. Everything must be sold at BOM costs or you're greedy and your company needs to die.

 

As if the idea/tech just appeared out of thin air and you just sell them to the public.

 

 

the thing is that OP is forgetting that the example of the xbox and playstation are most likely the factories they used on last gen consoles but retooled for this gen's consoles.

 

and for occulus to buy an injection molding machine for the plastic bits on an occulus would probably be half of their "profit margin" based on how many are out there.

 

we're talking prices here of the purchase of "cheap" factory equipment warranting a weeklong overseas trip by plane including 4 star hotel just to do the paperwork.

[Sakkura]

These idiots forgot to factor in the price of the lenses. Custom hybrid fresnel lenses. Good job.

 

Also this lovely snippet from their site:

 

Quote

The Rift is intended for use with game consoles

They are completely clueless and their estimates are useless.