After I gushed about the impressive virtual reality experience offered in a hands-on demo of the HTC Vive (developed in conjunction with Valve) earlier this month, I commented that the only thing that could really sour me on the hardware's potential at this point was a big price tag, which remains unannounced. Now, an HTC executive is warning that consumers should be prepared for "a slightly higher price point" when the headset is released to consumers later this year.

In an interview with trade publication MCV, HTC Connected Products Marketing Executive Director Jeff Gattis says the company wants "to deliver the most premium VR experience the world has seen." He goes on to insist that's not just marketing hyperbole, but a factual reflection that "this is at the high end" of the market.

"Starting with the premium experience, even if it has a slightly higher price point, is the right thing to do from a strategic point of view," Gattis continues. "The price can always come down as the market grows. We know there is some pent-up demand there, so there’s not so much price sensitivity early on. But to get the broader consumer adoption we’re all hoping for, the industry will have to drive price down to make it more accessible. Whether we do that with Vive or other form factors and devices, we understand the importance of driving price down to achieve adoption."

When HTC says to expect "slightly higher price point," it's probably fair to use Oculus' Rift headsets as a baseline for comparison. Oculus charged $300 for its first development kits in 2013, and $350 for an updated development kit released last year, which also included a proprietary webcam for motion tracking. Oculus founder Palmer Luckey said last September that the company is aiming to "stay in that $200-400 price range" for the eventual consumer release of the Rift headset (though the timing of that release continues to look somewhat uncertain). Sony has not announced pricing plans for Project Morpheus, expected in early 2016.

Sam Machkovech

Sam Machkovech

Sam Machkovech

Sam Machkovech

Sam Machkovech

Sam Machkovech















It's not shocking that HTC expects the Vive to come in at a premium price, given the hardware involved. Both the headset and the two wireless handheld controllers (not included in Oculus' pricing) are equipped with arrays of dozens of laser sensors, set at angles designed to pick out coded tracking data from two external "Lighthouse" transmitters. Even if the individual tracking nodes (and the transmitters) are relatively cheap on their own, such a system will still likely end up costing more to produce than the single-camera tracking solution currently used by the likes of Oculus and Sony.

The Vive's two 1200×1080 displays probably don't add too much to the relative cost, given how much the mobile phone market has driven down LCD and LED screen prices in recent years. Still, getting those displays at a 90Hz refresh rate, and in the most lightweight form factor possible, might add to the production costs as well.

The question now becomes just how premium of a price HTC has in mind for this entire setup, and what the market of early adopters will bear to get their hands on the system. Keep in mind that you'll also probably need a gaming rig with a decently beefy graphics card to drive two separate 3D perspectives in VR, especially for the kinds of high-end graphical experiences that will have everyone drooling. Hey, no one said the future would be cheap.

Elsewhere in the interview, Gattis says that physical retail partners will be key to getting the Vive out in front of a skeptical public, with in-store displays that can provide the hands-on experience needed to really understand the Vive's appeal. Despite retail enthusiasm, though, Gattis doesn't see VR becoming an overnight success after Vive's release, even as he thinks that releasing a consumer product in a shorter time frame will "light a fire under our competitors."