blog.ihs.com
the production an assembly of an Oculus Rift costs around 200 dollars.
I thought capitalism was supposed to bring us better products for as cheap as possible?
Why are US citizens living and supporting a country that is ripping off everything and everyone and call it the home of liberty?
How far could've video games already gotten without US "capitalism"?
Also general VR thread.
>No ffxv
>No Ace Combat
>No Batman
>No Gran Turismo
>No Crytek Journey
Whats the point of PC VR again? $2000 for indie games? git the phuck outta here bro with dat gay shit
>I thought capitalism was supposed to bring us better products for as cheap as possible?
>as cheap as possible?
Common misconception. Capitalism is about finding the most efficient allocation of resources. It would be to sell most products for cheaper, but usually this less than there market value (how much people are willing to pay). By charging less than market value the return for costs is significantly lower and will lead to supply being unable to keep up with demand.
In order to make a profit a company has to not only cover the cost of each unit, but also things like R&D costs, administrative costs, etc.
That said, I still don't know why anybody would buy one of these in the first place.
>cover costs
This is false, prices are set in order to maximize profits by finding the market equilibrium to achieve optimal efficiency. Costs are only one factor in that.
>What is research and development?
>What is return profit for loaned money?
OP, you might as well say all games should be less than $2 because that's how much it costs to print the DVD and packaging.
Yes user, I was not trying to give an exhaustive explanation of how capitalism works.
kikebook
>r&d
you mean what was paid by kickstarter?
You're propagating the retarded idea that low cost to produce = cheap price, which completely ignores other demand and supply factors.
This is part of what the Pirates use to legitimize their theft of said video games.
They're forgetting the people who work 40 hour work weeks to bring them the product they want. So they repay them by pirating the game because "f-fuck the developers!!"
Products aren't worth just slightly more than the cost of materials, especially if a lot of money goes into R&D. You're not just paying for your Rift, but the costs to develop the Rift in the first place.
wtf i hate capitalism now
>OP talks about costs
>why are you talking about costs too?!
I see.
I think there's been a little more done since the DK1, user.
OP was complaining about the price under the misguided perception it should be tied to the cost.
OP is a retard and though cost of product is the only influence on the final cost. He ignored the other factors that go into the final price.
Oh boy another thread about people not understanding that it's standard practice to price a product 2-3x the bill of material to cover development and marketing costs.
>Capitalism is about finding the most efficient allocation of resources.
yeah no, in-kind calculus is immediately used any time a total war situation began because it's definitely more efficient.
Explaining market equilibrium to somebody making a complaint like that will not help, because they will view that as merely being more of an unjustified increase.
>Slightly more
The purchase price is 600$, you rarely find a 200% markup anywhere in the retail space
Thats how business in most countries not just the us works. The costs of R&D and everything need to be covered and still leave room for profit.
Stop pretending to know things, you don't know shit, a fucking 400% markup is not how business works
This is why I build my own amp cabinets.
I can literally build a cabinet in a couple weeks for like 500 bucks max and is as good as the 5 grand amp cabs you get with marshalls. I could sell these and simply ask for 100 bucks profit and they'd still be cheap as fuck.
Capitalism is aids.
>ace combat
>ffxv
>gran turismo
none of those franchises have been good for about a decade now
Pirates trying to justify why they steal games are entitled shit stains.
If they are anything like the people in Denuvo threads they are delusional and far beyond help.
>Capitalism is about finding the most efficient allocation of resources.
HAHA O WOW
>I don't understand supply and demand
Let's say 500 Oculus Rift's can be produced at at the given costs per week. How do we decide who gets them out of all the people competing for them? Obviously if they are given away for free we won't have enough.
The simple answer is that the price is raised until the amount of demand equals how much can be produced. So as you can see price is more about demand than just simple costs which are only one factor in determining how many can be be produced.
>you rarely find a 200% mark up
Yeah it's usually higher. A little ceasers one topping large only cost them $1.15 to make yet you pay 5 dollars for, and that's at the lowest of the low pizza joints.
>what are R&D costs
Best Suicide Squad trailer yet.
>IIT Sup Forums tries to figure out basic economics
In terms of creating production that adequately meets demand with as little excess as possible it is.
No, in a Total War situation the goal is to Maximise Production not to efficiently meet demand. Countries run up massive debts during wars because they aren't trying to be efficient with their spending.
>raw materials are chepaer than the retail priced products after patents, labor, assembly, supervisors, factory rental/utilities, advertising & marketing, packaging, plus environmental taxes and then the costs of shipping them across sea
my mind is blown! capitalism was the enemy all along
every time some makes one of these psot about any electronics I wan't to punch them, for fucks sake, I doubt you go to a rastaurant an call them scammers beacuse the are asking you to pay more than the cost of the materials.
The simple answer is that they will charge whatever people are willing to pay for it, no matter how much it cost to produce. How much people will pay depends on the supply and people's demand for it.
So much for selling them at cost.
You really need to look up how the economies of WW1 and 2 were managed and the effect it had on the people who did it.
War Economics and Free Market economics are two inherently different things with completely different goals.
store.steampowered.com
>cost over $2 million to make
>25 minute tech demo for $25
is this what kills the VR?
>How far could've video games already gotten without US "capitalism"?
Jesus christ what an insufferable faggot
You act like the US is stopping other countries from developing video games, something any faggot with a laptop and an internet connection can do thanks to piracy
Kill yourself
and free markets are demonstrably less efficient at resource allocation.
>implying valve didn't do all the R&D for them
That depends entirely on what the goal is. If the goal is satisfying demand the free market is most efficient, if the goal is maximizing production (such as during war) it's not.
>If the goal is satisfying demand the free market is most efficient
Go home Hayek your attempts to reduce economics to a subset of moral philosophy should have been considered bunk decades ago.
>moral philosophy
It's literally just basic maths.
I remember being told that they'd most likely sell at a cost, lol
So Oculus has folded on pretty much everything they ever promised, right?
>open standard
>controllers
>$300 price
>open platform
I mean the Vive is an overpriced shit too but why would anyone ever buy anything from these supreme-hacks again?
Basic maths tells us centralised information is more information and resource efficient though.
Would $100 be worth the two weeks time it takes to build one?
It's impossible to be more efficient than a system which will adjust itself automatically to any changes through the invisible hand of the market.
Not to mention it's impossible to gather enough information and react to change fast enough for a centralized system to ever be efficient.
Every example in history has fairly conclusively shown the superiority of the free market over centralized economic systems.
reality.gn.apc.org
None of what you said has been true since the 90s. Computers long ago reached the capability to surpass any invisible hand of the free market.
>assembly
oh okay
do they materialise the components to assemble out of their magic hats ?
>The most influential philospher of the last two centuries was Karl Marx. Among philosophers he was unusual both in being a communist and in being an expert in economics
>Among philosophers he was unusual both in being a communist and in being an expert in economics
>an expert in economics
They can't be fucking serious.
It's impossible to say marx hasn't had the most impact in the world.
And he wasn't an economic illiterate like most mythology likes to suggest.
But I challenge you to refute any of their math or claims.
>cost over $2 million to make
I just cant believe this without a source.
If this is true, they should hang their selves. No one is waiting for this shit and surely not for 25 dollars.
>They’ve announced received over $2M in seed funding
Just fucking wow, how can you make business decisions that are this bad?
Lets hope these 100 Million bring actual good games
roadtovr.com
Honestly, I'd pay $25 to climb the everest in VR.
I'd play $25 easily to take a VR gander at many many tourist spots that would cost me 100x as much to visit in person
But not with this graphical fiedlity, not with a tunnelvision and blurry sides, and whatever defective shit they still have like black smear and whatever the new one had.
In the future I can absolutely see this worth it, but not right now.
The problem is that Palmer has said the reason why the Oculus Rift is priced so high is mainly due to the internal components and manufacturing costs.
He also said if anything it should be priced much higher since they won't make any money off the hardware.
>6 of the 33 companies are about gaming
>all literal whos, mobile devs and VR startups
T-thanks
Because porn
Palmer:
>Rift will cost about 300 dollars
>We're not making money on hardware
See it all makes sense now.
$200 BoM cost of a $600 device is normal.
Not like they ever made up an excuse for being so close to the Vive in price when all they did is put in a fucking xbone controller
Oculus is so fucking pathetic, all that backing and they accomplished nothing.
>making games
>40h workweek
Fucking kek