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Rift hardware cost <$210

twisteklabs
Heroic Explorer
This article says Rift hardware costs ~$210.
Does it mean the rest is the frenel lenses & software?

http://www.roadtovr.com/oculus-rift-components-cost-around-200-new-teardown-suggests/
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18 REPLIES 18

Deathound
Protege
R&D got to pay for all the time designing it. 

JaimieVandenber
Heroic Explorer
Teardowns like this are always unrealistic. Sure it might (*might*) costjust $200 per Rift to make the kit - but if you look at it that way, then the first one cost $50million in research and development. Gotta amortise that cost over the rest.

I see these all the time for phones, Apple kit and so on. In some cases (literally cases for Apple laptops) the company had to invent the tooling and process to make the kit. If they hadn't already made them, the cost would be effectively infinite because the parts just didn't exist and couldn't be made. So it's just silly really.

Gets the haters all up in arms and shouty on the Internet though, so I guess it works as clickbait.

Anonymous
Not applicable
That really doesn't tell us very much because we don't have the data to factor in all of the other costs involved; R&D, software development, design, engineering, labor, utilities, insurance, facilities, warranty & tech support, etc., etc., etc.

I run a small business; the hidden cost and overhead can be staggering. It's very easy for me to imagine that those other factors amount to 1.5 to 2x the cost of the parts. It seems irresponsible to me to put this kind of report out there in the first place - unless of course, you want to stir the pot and get attention.

JaimieVandenber
Heroic Explorer
On the plus side, the article linked isn't doing it in a clickbaity way and indeed makes the same points we all have! How rare.

twisteklabs
Heroic Explorer
I am not trying to stir the pot, or click baiting.
Facebook ownership of Oculus should ideally help in spreading the R&D, manufacturing, tooling costs over a period of time.
Mark Zukerberg estimating a small number of rift headsets to be sold in the beginning might be the reason for the pricing. Not sure at all.
Then the large demand messed up the equation.

Does this tear down price indicate the Oculus Rift price change when Touch controllers become available?


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Comic_Book_Guy
Superstar


This article says Rift hardware costs ~$210.

Does it mean the rest is the frenel lenses & software?



http://www.roadtovr.com/oculus-rift-components-cost-around-200-new-teardown-suggests/

Yes, the rest is the OLED screens. it's more like $370. $210+ $140 ( the OLED screens are $70 each, $140 for 2) + Controller. That doesn't include production, R&D , paying staff or anything.

It's pretty cheap considering. We are blessed to have this tech for lack of better wording, I'm not religious lol

nightauditor198
Adventurer
That sounds about right. If you add labor, R&D, marketing, distribution and all the other stuff that I am forgetting then you should get to the final price.

Deathound
Protege
There is also profit. Lets get real here, even after all the R&D, operating costs,support, etc, etc, the company has to turn some sort of a profit. If they didn't they would not be able to continue as a business. I don't think the price of the Rift is really all that high considering all that goes into releasing a product like this. 

nalex66
MVP
MVP
In manufacturing, a very rough rule of thumb is that the materials make up about a third of the total cost of an item. of course, this will vary a lot depending on industry and how labour-intensive fabrication and assembly is, but generally speaking, the cost of a manufactured product is much more than the sum of the parts.

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