Dissecting the Price Puzzle in Virtual Reality Investments

Some virtual reality headsets are relatively affordable, but others are insanely expensive. To top it off, some VR headsets also require a high-end, expensive PC, adding to the total sticker shock.

When you look at the prices for modern smartphones, TVs, and even video games, it’s clear that everything is getting pricier. But what about VR, specifically, makes it such an expensive investment?

How Much Are the Most Popular VR Headsets?

Budget VR headsets do exist, but they’re not the most popular options, and they’ll often require a smartphone or a PC to function. Though there are many options, the most sought-after options right now include the Meta Quest 2, the PSVR2, and the HTC Vive Pro 2.

The Meta Quest 2, known as theOculus Quest 2 when we reviewed it, starts at $299.99, and this is by far the most affordable quality VR headset right now. Interestingly, theMeta Quest 2 became $100 more expensive two years after its release but has since dropped the price to match its original release price.

The PlayStation VR2 starts at $549.99, but you also need to own a PS5 to use the PSVR2, which adds at least $399.99 to the total cost. Similarly, the HTC Vive Pro 2 headset starts at $799, but you’ll also need a high-end PC that could easily tack on an extra $1-2,000 to your total cost.

Then, there are expensive options that seem more focused on businesses or developers, like the Meta Quest Pro ($999) or Apple’s upcoming Vision Pro headset ($3,499). What about VR technology makes these headsets, standalone or not, so expensive?

1. There’s a Lot of Expensive (and New) Tech Inside

Because virtual reality is a relatively new computer technology, there are a lot of costs associated strictly with research and development. Not all of these R&D costs come across in the final VR headset price for consumers, but some do. The best software and hardware to use inside VR headsets are constantly developing, and the price of these software and hardware components is higher now than it likely will be in the future.

When you consider early smartphones, they were expensive for their seemingly small specs. As smartphones and their internal components evolved, the price for what you get leveled out (well, mostly). Now, you can buy a budget smartphone with excellent specs or splurge on a high-end flagship phone decked out with a gorgeous display, top-tier cameras, and a slew of smart features.

Eventually, VR headsets should follow the same path as smartphones and other expensive technology. Right now, VR headsets are equipped with an array of sensors, like gyroscopes, motion- and eye-tracking sensors, and accelerometers, to help what you see through the lenses move correctly.

Then, the display is often one of the most expensive components, if not_the_ most expensive component of most VR headsets, because they feature OLED or AMOLED technology for a smooth, less blurry experience. VR displays must also have a high refresh rate and high resolution to encourage a more immersive, less motion-sickness-inducing experience.

2. VR Headsets Come With More Than Just Gaming Features

There are somegreat virtual reality ports of existing games and fantastic games built from the ground up specifically for VR. If you’re into gaming, these uniquely immersive gaming experiences are an easy selling point for VR headsets. However, modern VR headsets can do much more.

VR technology is helping with certain mental health issues , like PTSD, anxiety, depression, and phobias. This technology also allows people to virtually explore the wonders of the world if they’re physically or financially unable to do so otherwise.

Then,virtual reality is changing the entertainment industry in multiple ways, like allowing people to take part in theater movie nights with other internet friends from the comfort of their own homes or going to a virtual nightclub or a concert by their favorite artist. You can visit museums or view live sports events with a VR headset.

There are some headsets designed without gaming at the forefront. Meta’s Quest Pro is promoted as a work-focused device that allows people to work from home but also collaborate with others in a virtual work setting.Apple’s expensive Vision Pro headset also puts more emphasis on using the headset for working rather than gaming.

3. Many Are Portable, Needing a Robust Design, Battery, and Speakers

Unlike a high-end PC that typically stays in your home, a VR headset is often made to be portable. It’s easier to pack up a VR headset to take with you on vacation or to a friend’s house. Because of this, a VR headset must be durable enough to withstand a little rough wear during transit. If you plan to travel by plane or don’t want to risk any damage, packing it inside a case is one of thebest ways to store your VR headset safely .

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The hard plastic that typically covers the outer sides of a VR headset is meant to withstand normal wear and tear. Then, although every fall or drop is different, VR headsets are built to do their best to protect the internal components from an accidental drop. This robust design can make the headset pricier, but it’ll help protect your investment in the long run.

VR headsets are notorious for having short battery life, but adding a battery adds cost to the headset nonetheless. Opting for a wired headset that needs to connect to a high-end PC or a console negates the need for the headset to be charged, but there are still batteries in the controllers to consider. Companies creating VR headsets also need to allocate costs to more premium speakers since that plays a huge role in the immersive qualities of virtual reality.

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4. There’s Not Enough Consumer Demand Yet

Currently, not enough people see a reason to invest in a VR headset. They’re seen largely as just another video game console, and to be fair, that’s where VR headsets are excelling the most right now. However, you can also watch movies, explore far-away places, and get an invigorating workout.

As more people test virtual reality or see the benefits outside of gaming, VR headsets should become more popular and, hopefully, less expensive.

The law of supply and demand has many rules and weird exceptions, but sometimes when a product is new, and fewer products are being made, the price is higher to offset manufacturing costs. Then, it could be only marginally more expensive to manufacture double the amount of product if the consumer demand was there, resulting in a lower overall cost.

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VR May Be Pricey, But It’s Super Cool

The entry point for a good VR headset is still up there with most new video game consoles or budget flagship phones. Knowing the technology inside a quality VR headset, the pricing makes sense—for now.

As the technology used inside VR headsets becomes more readily available and affordable, the VR headsets will hopefully become more affordable.