What would you pay for VR?

[CosmicSex]

I didn't realize that the Gear VR was $300.
Well, I think we are looking at a situation where the initial pricing will be at $199 to $250 and then we will see a price drop of $50 to $100 in a years time.

Think with reasonable business sense, its okay to start higher because:
1. There are naturally lower margins in the beginning or even negative ones
2. There are people willing to pay the higher price
3. As production costs fall, you can pivot towards a cheaper and cheaper price.

The only real drawback to starting high is the chance that you price higher than people are willing to pay and your margins are automatically negative.

So it works like this; Imagine that it costs $300 to produce Lets say the Demand at a given price works like this:
*Example One - PM sells for $350
- You sell 1 million units ($50 million margin)
- Price drops in 6 months to $300 and you sell 500k (meanwhile production costs fall to $275 - $25 million profit)
- After first year you have $75 million in profits with 1.5 million sold
*Example Two - PM sells for $250
- You sell 1.5 million units (Loss of $75 million)
- After 6 months price remains $250 and sells 750k (meanwhile production cost falls to $275 - 18.75 million loss)
- After first year you have $93.75 million in losses with 2.1 million sold