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

zMeul
By zMeul
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Posted

"Oh but what about Resear..."

No, they've got Facebook money for that. They could have gone lower, but they didn't. Probably because they don't want the public to perceive it as "cheap" not to actually recover any costs or research or marketing.

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Again, bom costs mean nothing when compared to retail sales price as there is SO much more that goes into the final price. A intel 6950x only uses a few dollars worth of material, does that mean intel is ripping everybody off? no, not at all because we all know how much research and design has to go into designing a chip like that. Same goes for any product.

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4 hours 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.

I don't have anything against Facebook. But like @vorticalbox said the product may cost $206 to make but there's more than just that. R&D, Marketing and Profit.

 

I'm sure the Vive is in a similar position. Also the performance of the RX 480 under the Rift doesn't seem to be too bad. Though I think the Vive 2 or Rift CV2 will likely be huge improvements but they won't be cheaper. GPUs will have likely had a year or two to mature from current GPUs so that could help too.

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4 hours ago, vorticalbox said:

if you ignore Research and development costs and the cost of manufacturing sure. Huge profit.

And distribution, and marketing.

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4 hours ago, zMeul said:

don't get me started ...

I'm guessing you're already aware Carmak was accused by Zenimax for stealing their source code - and there is a lawsuit against FB for this

so .. when you talk about R&D ... what R&D?!?!

 

if I recall, even Luckey was accused by his former employee of stealing VR tech or know how before he went on kickstaring Oculus

Usually one is innocent until proven guilty.

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4 minutes ago, Centurius said:

Usually one is innocent until proven guilty.

I'm not the court of law, I'm expressing an opinion

 

if there wasn't any merit to the claims, the judge would've dismissed the suit with prejudice 

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5 hours ago, zMeul said:

don't get me started ...

I'm guessing you're already aware Carmak was accused by Zenimax for stealing their source code - and there is a lawsuit against FB for this

so .. when you talk about R&D ... what R&D?!?!

 

if I recall, even Luckey was accused by his former employee of stealing VR tech or know how before he went on kickstaring Oculus

Carmack is not accused of stealing someone else's written code, and Zenimax does not claim to have directed or possessed any of the code that their lawsuit is demanding they receive dividends from.

 

Zenimax argues that any code which Carmack produced while still under contract to them, even code produced outside of the professional projects Carmack worked on for Zenimax, is the rightful property of Zenimax, and therefore they should be receiving dividends from any profits of that code. The code in question is not any particularly-defined code, because Zenimax don't know what code Carmack produced for VR projects while under contract to them, and have never held any such code within their possession. The code in question is code that Carmack is the sole originator, writer, and possessor of, and which he made, claimedly, during his own spare time, but during a time period while he was still professionally employed by Zenimax.

 

Zenimax is just claiming that any and all code which Carmack wrote while being an employee of theirs should be their property, without knowing exactly what code Carmack did or didn't make outside of their projects.

You own the software that you purchase - Understanding software licenses and EULAs

 

"We’ll know our disinformation program is complete when everything the american public believes is false" - William Casey, CIA Director 1981-1987

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28 minutes ago, Delicieuxz said:

Carmack is not accused of stealing someone else's written code, and Zenimax does not claim to have directed or possessed any of the code that their lawsuit is demanding they receive dividends from.

 

Zenimax argues that any code which Carmack produced while still under contract to them, even code produced outside of the professional projects Carmack worked on for Zenimax, is the rightful property of Zenimax, and therefore they should be receiving dividends from any profits of that code. The code is question is not any particularly-defined code, because Zenimax don't know what code Carmack produced for VR projects while under contract to them, and have never held any such code within their possession. The code in question is code that Carmack is the sole originator, writer, and possessor of, and which he made, claimedly, during his own spare time, but during a time period while he was still professionally employed by Zenimax.

 

Zenimax is just claiming that any and all code which Carmack wrote while being an employee of theirs should be their property, without knowing exactly what code Carmack did or didn't make outside of their projects.

i like it when people who do lawspeak make sense.

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Judging a company's net profit from retail cost minus BOM is Bad Accounting 101. Operating Revenue does not dictate your profit and loss. You can't call the VR set a total ripoff until all of us see an independent audit of Oculus' P&L statement, balance sheet AND HTC's as well to compare.

 

Tearing down and estimating value from BOM is like people from the 30s buying a Sputnik and calling it an overpriced piece of junk because it's a flimsy metal ball with cheapass bolts.

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2 hours ago, zMeul said:

I'm not the court of law, I'm expressing an opinion

 

if there wasn't any merit to the claims, the judge would've dismissed the suit with prejudice 

It's cute that you actually think that is true.

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I agree with the overall notion that the retail value of a product cannot be determined by BOM cost alone. Regardless of who is behind it, research and development can be pretty expensive per unit. Not to mention that people often underestimate to a laughable degree the costs behind marketing and distribution.

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They are the first to release anything like this, they are trying to make money off it before another company is able to stamp it out for $100 a unit. :)

-KuJoe

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What do you expect. The very first consumer edition. I see why the Vive costs more as they had to engineer a way to track in 3D space that only relies on the headset to cut down on latency.

▓ƆԀ▓ S▓₱▓Ɇ▓c▓s▓: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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Just now, SamStrecker said:

What do you expect. The very first consumer edition. I see why the Vive costs more as they had to engineer a way to track in 3D space that only relies on the headset to cut down on latency.

Nonsense. The Vive system ultimately relies on the computer for tracking, just like the Rift system. It's just that the sensor and emitter in each system swap places and direction. As for latency, the Vive system probably has higher latency because the lasers only spin 60 times per second, but it doesn't matter - both headsets have IMUs to take care of tracking over short time periods. You only need a tracking system because IMUs have issues with drift over longer stretches of time.

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1 minute ago, Sakkura said:

Nonsense. The Vive system ultimately relies on the computer for tracking, just like the Rift system. It's just that the sensor and emitter in each system swap places and direction. As for latency, the Vive system probably has higher latency because the lasers only spin 60 times per second, but it doesn't matter - both headsets have IMUs to take care of tracking over short time periods. You only need a tracking system because IMUs have issues with drift over longer stretches of time.

Well if it is so easy build yourself one

▓ƆԀ▓ S▓₱▓Ɇ▓c▓s▓: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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Posted
Just now, SamStrecker said:

Well if it is so easy build yourself one

I didn't say it was easy. We only have two consumer VR systems that accomplished it.

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3 minutes ago, Sakkura said:

I didn't say it was easy. We only have two consumer VR systems that accomplished it.

Yeah so we need to sit and wait for more to see

▓ƆԀ▓ S▓₱▓Ɇ▓c▓s▓: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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Posted

You can't just ignore RnD because consoles are sold at a loss. Console manufacturers make their profit from licensing games for the consoles, so they can easily still make a profit; infact its more profitable for them to sell it at a loss and get as many consoles out there, so people buy as many games as possible.

 

Oculus though has no such licensing ability. They don't have the ability to sell the headset at a loss, because they are making jack shit from licensing of games. They have to cover their RnD and the time it took for the product to enter market. Given that, $600 seems pretty damn fair. Look at the vive... slap on another 100$ in sensors and suddenly it raises the cost to $899? then again they didn't make nearly 22 million from the sale of SDK's over the course of three years like oculus did.

 

 

 

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Sooo I want to put this here, as someone who has been closely involved with the entire process of manufacturing parts for several multi million dollar companies, all the way to equipment and parts sales:

 

30% BOM cost compared to retail price is a pretty good deal for the consumer... In fact it's a damn good deal.

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10 hours 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

if every new technology was sold at the price it actually cost, you wouldn't have anything today. and GTX titan would be 300$ not 1200, PS i forgot all about the cost that was spent to manufacture oculus, just becasue a sinlge transistor costs 5$ doesnt mean they got it for 5 and doesnt mean they didnt have to pay for the labor to do so. you'd be naive to think so.

 

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  • Author
5 hours ago, Derangel said:

It's cute that you actually think that is true.

I'm not thinking it's true, I'm saying it's my opinion

you don't agree? good! now move on

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1 hour ago, zMeul said:

I'm not thinking it's true, I'm saying it's my opinion

you don't agree? good! now move on

I wasn't talk about your opinion, I was talking about your comments on it not being dismissed. Tons of frivolous trolling lawsuits make it past the dismissal stage even though there is no possible way that they're valid. The US court system is several kinds of fucked.

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29 minutes ago, Derangel said:

Tons of frivolous trolling lawsuits make it past the dismissal stage even though there is no possible way that they're valid

except those who aren't?! xD

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17 hours ago, zMeul said:

 FaceBook

Did you start trolling people because of MicroSoft complaints? 

The ability to google properly is a skill of its own. 

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17 hours ago, zMeul said:

-snip-

 

17 hours 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.

stop crying you butt hurt little babies. its called business deal with it.

17 hours ago, zMeul said:

what R&D? they are not making space rockets, everything in a VR headset is already available in one form or the other

mind you, the prototype used smartphone screens

 

the only development is done software side, and they already make money on that

if you think there has been no R&D then you are an idiot.  you think all those parts just fell together. that they emptied a box of parts onto a bench and poof there was the rift? 

 

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