Oculus Rift Price Cut To $399 With Touch

Oculus Rift Price Cut To $399 With Touch

Last night Oculus announced that the RIFT VR Headset will now cost $399 with the hand-tracking touch controllers.

This is a drastic price cut from the $799 just five months ago. The price cut comes as part of the "Summer of Rift" promotion that also includes discounts on various Oculus games.

As recently as March 1, the Rift headset without the touch controllers dropped to $499. It originally launched at a price tag of $599 a year before that. The Oculus Touch controllers are also discounted, and now cost $99 (down from $199).

With these price changes, if you already have a decent gaming PC, now is a great time to jump into VR. If on the other hand, you don't have a PC capable of VR, you may have to hold off a few months.

The recent price spikes on video cards due to mining currency has made building a gaming PC much more expensive lately. Ram and SSD prices have also been steadily going up.

So why is the Oculus Rift getting such drastic price cuts? While the initial headset had a high pre-order rate, reports suggest retail interest has subsided lately.

The Rift is also now 18 months old, meaning production cost of older components is cheaper, and therefore Oculus can afford to reduce the price.

Comments from Oculus Co-founder Palmer Luckey indicate the company wasn't making a profit at the initial $599 price tag, and Mark Zuckerberg, CEO of Oculus-parent Facebook, noted that "VR is not going to be profitable for a while".

Could this also mean that a potential second version of the Rift is in the works? Back in 2014, then-CEO of Oculus, Brendan Iribe, said that a second version of the Rift would be released "a year or two after the first".