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[WSJ] Facebook to Acquire Oculus - Page 34

post #331 of 383
I'm sorry, but I rarely believe it when companies say "At cost" I just don't.
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post #332 of 383
Quote:
Originally Posted by skupples View Post

I'm sorry, but I rarely believe it when companies say "At cost" I just don't.

Yeah I was just about to ask when I saw a new reply to the thread.

"At cost" does this mean, materials cost or materials cost + labor cost or what. AT cost is a very malleable set of words in business. I mean if we're talking materials cost, heck that means we're going to get OR as cheap as some of the mice I own.
 
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post #333 of 383
Quote:
Originally Posted by Darkpriest667 View Post

Yeah I was just about to ask when I saw a new reply to the thread.

"At cost" does this mean, materials cost or materials cost + labor cost or what. AT cost is a very malleable set of words in business. I mean if we're talking materials cost, heck that means we're going to get OR as cheap as some of the mice I own.

Exactly... Seems allot of people assume @ cost means cost of hardware. That would easily place it @ a 100$ unit. At cost in this situation likely means: Hardware, production, labor, R&D, & beer oh and last but not least, marketing jargon to make people think they are being generous. I have no doubt they will turn them out @ a low profit margin, but I in no way believe they will be truly selling them "at cost".
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post #334 of 383
Quote:
Originally Posted by skupples View Post

Exactly... Seems allot of people assume @ cost means cost of hardware. That would easily place it @ a 100$ unit. At cost in this situation likely means: Hardware, production, labor, R&D, & beer oh and last but not least, marketing jargon to make people think they are being generous. I have no doubt they will turn them out @ a low profit margin, but I in no way believe they will be truly selling them "at cost".

It doesn't necessarily have to be at cost in the literal sense, very low margin would still bring the price down but Facebook is investing in the platform and not the hardware.

According to this the price to manufacture the Xbox One is $471 (not including R&D/marketing, I think it includes labor but the article isn't clear) but the launch price was $499 and is now $449. The previous generation was even worse, selling at a loss of $126 in parts alone (not even including labor).
post #335 of 383
Yes! The console companies make 99% of their money (in that division) off of licensing.
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post #336 of 383
Quote:
Originally Posted by skupples View Post

Yes! The console companies make 99% of their money (in that division) off of licensing.


Yes exactly and that does not bode well for OR. The original intent of the OR team was to sell consumer units for 300 each. I have to believe that they either were selling DK at a loss or very close to parts cost only. If anyone expects facebook to drop 2 billion into something and then sell the hardware at a loss without ad spam and data mining they are either incredibly naive or incredibly something else against the TOS to mention.
 
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post #337 of 383
Quote:
Originally Posted by skupples View Post

M$ Would never lock a VR headset to Xbox only. They would just drown it in software, making it require GFWL. Also, I see Sony deciding to remove their "PS4 only" garbage, even then... PS4 is an el-cheepo AMD PC, so hacking around a lockout probably won't be that difficult.

Sony & M$ would not be competing with Foculus Rift if they bound their devices to consoles.

I could see MS as of 2009 or so locking it to Xbox, but now? They seem to be porting Forza to PC, actually trying with DX12 and generally wanting to keep Linux from gaining steam with gamers. Why? That would mean Linux starts to pick up more support from application developers, drivers, etc and that would mean MS could lose the main advantage Windows has. I'd honestly be surprised if the VR even required anything but a driver similar to the Xbox 360 controller because MS would know how bad GFWL was received, if not I could see someone making an open source/3rd party driver to use it.
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post #338 of 383
Quote:
Originally Posted by Brutuz View Post

I could see MS as of 2009 or so locking it to Xbox, but now? They seem to be porting Forza to PC, actually trying with DX12 and generally wanting to keep Linux from gaining steam with gamers. Why? That would mean Linux starts to pick up more support from application developers, drivers, etc and that would mean MS could lose the main advantage Windows has. I'd honestly be surprised if the VR even required anything but a driver similar to the Xbox 360 controller because MS would know how bad GFWL was received, if not I could see someone making an open source/3rd party driver to use it.

I see people hacking the living hell out of OR if facebook decides to try to lock it down with required accounts, & other nonsense.

I kinda forgot that GFWL is all but dead @ this point. It wasn't the DRM that bothered me, it was the obscenely bad UI.
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post #339 of 383
I have read somewhere that palmer luckey himself said that apple and microsoft wanted to buy the oculus rift. Wouldn't it be better if microsoft bought it instead of facebook since they could have used it on xbox and pc gaming. I don't have a facebook account and will never make a account. But maybe in the near future you will need a account to use the oculus rift. I really wanted to buy this but not sure if i will ever buy it now
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post #340 of 383
Quote:
Originally Posted by FlyingSolo View Post

I have read somewhere that palmer luckey himself said that apple and microsoft wanted to buy the oculus rift. Wouldn't it be better if microsoft bought it instead of facebook since they could have used it on xbox and pc gaming. I don't have a facebook account and will never make a account. But maybe in the near future you will need a account to use the oculus rift. I really wanted to buy this but not sure if i will ever buy it now

They said that they didn't want to be bought by companies with their own VR agenda that may conflict with theirs.

 

FB came out of absolutely nowhere (it appears) as a potential buyer, and with no existing VR agenda. With the amount FB threw at them it's not hard to see why Oculus accepted - lower sell price for CV1, probably nothing much/any interference from FB for a few years, lots of resources to draw on, and a hell of a lot of money for the founders themselves, with the rest going to get the VCs off their backs.

 

With all those benefits, you'd need some major deal-breakers to reasonably decline.

-"FB are evil"

-"FB datamine"

-"FB will eventually interfere"

do not fall into this category, and I for one still fail to see the problem with targeted ads. Google does exactly the same, and I'd much rather see hardware ads than ads for gardening (or the like).

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