Why did a cheaper headset get cancelled?

Immersed cancelled its cheaper headset as, basically, 96% of people didn’t want it. The company opened deposits for two VR headsets; one with 2.5K pixels per eye for $500; and the other with 4K for $750. The former was cancelled as 96% of people wanted the latter.

Analysis

I find it interesting because consumer VR headsets typically follow an elastic demand curve; the cheaper it is, the more likely it will move units regardless of quality. The UK saw this when the Oculus Go outsold the Quest when the latter was released, as the former was much cheaper.

It looks like the rules change when it is more geared towards productivity. Immersed offered a solution geared towards the workers, and buyers were more interested in 4K resolution than a higher price tag. Part of it must come down to cheaper pockets, but it also shows the strength of enterprise VR applications.

It also tells us that the price tag matters less for workers as they know that a better resolution is worth the higher price. In other words, productive workers have an inelastic demand for high-quality hardware. Perhaps the Vision Pro knew this and priced itself accordingly — though even then $3,500 is very high.

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