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[return to "Dented Reality: Magic Leap Sees Slow Sales, Steep Losses"]
1. zer00e+u2[view] [source] 2019-12-06 20:10:22
>>gumby+(OP)
For as cool as this is, cost is the problem.

$2300 is an expensive experiment, one that might not be for me.

You want to get developers to bet on new tech, to innovate, then get the cost way down. Make me as an individual developer willing to take the risk that I might not have the time or the mindset to follow through.

I can't imagine that the cost of production is more than $500... start selling them at that price point.

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2. nrp+h5[view] [source] 2019-12-06 20:30:39
>>zer00e+u2
I strongly suspect $2300 was at or below their breakeven cost, even not including amortization of R&D, NRE, or CapEx. They are presumably well aware that building a platform dependent on applications requires network effects that can only come into play if you have a large install base of units. I don't imagine they attempted to sell the hardware at a profit, which would work against that.

As other commenters have noted though, the problem is not so much the price as not having a real target use case or audience. Hololens is similarly expensive, but Microsoft cleverly did a late pivot before launching the first one to an audience that actually had a need for it.

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