Facebook And Sony VR Plays: Room For Two

One year later, after Sony Corp (ADR) SNE's initial unveiling of PlayStation VR, the company set forth a plan to release its virtual reality play at the 2015 Game Developers Conference. Sony's Andy House reported that PlayStation VR would be released in October 2016, available globally for $399.

This news was notable not just for gamers, but for those interested in Facebook Inc FB's Oculus Rift, which has a price point of $600 along with the cost of an expensive computer. Two months ago, Oculus creator Palmer Luckey defended what some considered a high price point for the technology in a Reddit AMA. With Move controllers packaged into Sony's PS VR, the price point is raised to $499.

To get an idea of the impact on competitors, Benzinga spoke with Wedbush's Managing Director of Equity Research Michael Pachter.

Related Link: We're Still A Few Years Away From True Virtual Reality Adoption

Pachter stated, "I don't think PlayStation VR cannibalizes Oculus much, as there are a lot of wealthy people and a lot of gamers who don't yet own PS4s. However, it is much more affordable, at $399 vs. $600 PLUS a high end PC."

Pachter guesses that of the 36 million users for PS4, 5 million will find the PlayStation VR price point attractive, while 1 million high-end PC owners will find the Oculus appealing.

He believes that ultimately, PS4's installed base advantage should help outsell Oculus. Pachter prefaces this, saying, "Just because PS VR 'wins', it doesn't mean that Oculus 'loses'. I think it's like comparing an expensive car to an inexpensive car. Nobody expects Mercedes to sell more cars than Volkswagen."

Listen to more of Michael Pachter's analysis on gaming via his show through SIFTD Games, Pachter Factor.