Eddie-Griffin
Banned
https://www.scmp.com/tech/big-tech/...-hundreds-jobs-after-ramping-competition-meta
I again have to question how much money do companies need to lose to actually compete in the VR market instead of just aiming for a niche audience with low production and minimal marketing.
From Zucker losing almost $14 billion last year, to whatever losses Byte Dance lost here resulting in numerous cuts, while also expecting to sell 1 million headsets they were not able to reach, was that the breakeven point or would that just justify the losses? Since they failed to reach that metric they are probably even further in the hole. Then you have HTC which is now producing limited units for their new headsets to prevent money losses, several brands dropped out, etc.
I'm not entirely sure if "really" competing in this market all-in is sustainable. I mean we have DPLR cutting shipments, TCL, Samsung, Apple, Bigscreen, and others are coming soon, but how much are they prepared to lose in order to sell 1 Million headsets or more and steal marketshare from the leader, that same leader lost near $14 billion dollars just in 2022 alone and JUST on things related to the headset directly, not separate software development and etc.
How much will Sony and Samsung need to sell to reduce losses, how much to break even? How much to bring in profits? But if they spend millions on software, marketing, tools, etc, then will that even matter? Zucker may have shipped 8 million Quest 2's last year maybe 9 of the 9.6 million shipped headsets worldwide in 2022, but he still lost almost $14 billion in cash. The market is not in a healthy position right now if your goal is to gain marketshare.
It seems like the current VR market is, do your best upfront to see if you can keep going, and if that doesn't work out start cutting investment to reduce losses until things stagnant and there's not much support.
I again have to question how much money do companies need to lose to actually compete in the VR market instead of just aiming for a niche audience with low production and minimal marketing.
From Zucker losing almost $14 billion last year, to whatever losses Byte Dance lost here resulting in numerous cuts, while also expecting to sell 1 million headsets they were not able to reach, was that the breakeven point or would that just justify the losses? Since they failed to reach that metric they are probably even further in the hole. Then you have HTC which is now producing limited units for their new headsets to prevent money losses, several brands dropped out, etc.
I'm not entirely sure if "really" competing in this market all-in is sustainable. I mean we have DPLR cutting shipments, TCL, Samsung, Apple, Bigscreen, and others are coming soon, but how much are they prepared to lose in order to sell 1 Million headsets or more and steal marketshare from the leader, that same leader lost near $14 billion dollars just in 2022 alone and JUST on things related to the headset directly, not separate software development and etc.
How much will Sony and Samsung need to sell to reduce losses, how much to break even? How much to bring in profits? But if they spend millions on software, marketing, tools, etc, then will that even matter? Zucker may have shipped 8 million Quest 2's last year maybe 9 of the 9.6 million shipped headsets worldwide in 2022, but he still lost almost $14 billion in cash. The market is not in a healthy position right now if your goal is to gain marketshare.
It seems like the current VR market is, do your best upfront to see if you can keep going, and if that doesn't work out start cutting investment to reduce losses until things stagnant and there's not much support.
