In an in-depth interview with Mark Zuckerberg, CEO of The Information, Facebook explained why Apple, HTC, Valve, HP and other companies may have issues with the technology giant competing for price in VR and AR.
“I’m pretty inclined to use the profit we can make from an app store, and only use it to lower the price,” Zuckerberg said.
Zuckerberg’s remarks do not explicitly mention Apple, but in this context there is a high probability that he will aim directly at the Cupertino-based company. Apple’s primary business model seeks profit in terms of hardware sales, and reports today indicate that Apple could aim for $ 1,000 for its upcoming mixed-reality headset. The same award is mentioned by Zuckerberg in response to a question regarding what kind of business model Facebook will pursue in VR and AR:
‘The business model will probably be largely around [social] experiences, kind of programs we are already building, building it and more. If the app store makes sense, that’s great. But I think we tend to try to offer these products at as low a cost as possible in order to bring it out for everyone. Unlike some of the other companies in this space that basically charge premium prices as their business model, one of our core principles is that we all want to serve. I’m not just focused on how to create a good VR & AR device, but how to make it $ 300 instead of $ 1000. I think this is quite a big deal. ”
Over the past few years, Facebook’s VR headsets have expanded a leading 58% stake in Valve’s Steam store window by gradually reducing the cost barrier as well as the setup required for a pleasant experience in VR. This latest comment is some of the strongest evidence yet that Facebook is just starting out.