Some Oculus Rift Shipments Delayed
April 03 2016 - 9:40PM
Dow Jones News
A parts shortage is delaying some shipments of Oculus VR's
virtual-reality headsets.
The Facebook Inc. unit said an "unexpected component shortage"
would slow deliveries of its new $599 Oculus Rift headsets for some
customers.
Oculus didn't specify the affected components, the expected
length of the delay or how many shipments would be affected. A
spokeswoman didn't respond to a request for comment. Oculus said in
an email that affected customers would get updated shipping dates
on April 12.
The delay is a setback for Oculus, which started shipping the
Rift last week, to mixed reviews tied to its high cost and
potential for discomfort. The Rift runs from a high-powered PC;
packages for the headset and compatible PC start around $1,500.
In an email sent to customers, Oculus said it would pay shipping
costs for all preordered Rifts.
"First set of Rifts are going out slower than we [originally]
estimated, so we're giving free shipping for all preorders,
including international," Oculus CEO Brendan Iribe said in a
message on Twitter on Saturday.
Facebook acquired Oculus for $2 billion in 2014, and Facebook
CEO Mark Zuckerberg has said virtual reality will be the next big
computing and communications platform. But the unit isn't expected
to chip in meaningfully to Facebook's bottom line for many
years.
Piper Jaffray & Co. analyst Gene Munster expects Oculus will
sell about 500,000 Rift units this year, representing about 1% of
Facebook's revenue.
Daniel Taylor of Fort Wright, Ky., preordered a Rift on Jan. 6,
and had previously been told he would receive it in May. He said he
wasn't upset about the delay in part because it means he'll save
about $50 on shipping costs. He spent roughly $1,600 on a computer
powerful enough to handle the device. Mr. Taylor, a
business-operations analyst for a bank, also said he's used to
waiting for new technology.
"I am somebody who waited in line eight hours for a Wii the day
it was released and eight hours for the first iPad," said the
30-year-old. "It's part and parcel of the process."
The Rift, the first headset developed and shipped by Oculus, is
the first of three high-end headsets due out this year that aim to
immerse users in virtual reality. The Vive headset, designed by HTC
Corp. in conjunction with Valve Corp., is scheduled to ship Tuesday
and costs around $799. Sony Corp.'s PlayStation VR is due out in
October for $399.
Both of Oculus's rivals have also faced setbacks. HTC said
Saturday that some customers' preorders were inadvertently
canceled, because of "processing issues with financial
institutions." HTC said it was working to resolve the problem and
had already reinstated some orders.
Sony originally planned to release the PlayStation VR in the
first half of this year. Last month, the company said it would push
back the launch to October to ensure it ships enough units and has
a wide variety of software available. Before then, Sony plans to
sell a more powerful version of its PlayStation 4 machine to handle
higher-end game experiences, including virtual reality.
Write to Deepa Seetharaman at Deepa.Seetharaman@wsj.com and
Sarah E. Needleman at sarah.needleman@wsj.com
(END) Dow Jones Newswires
April 03, 2016 22:25 ET (02:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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