The vast majority of people get phones on a contract tho. £30 a month for two years, including all their calls, data and texts.
That is a different proposition than finding £700 up front for a VR headset. Most people in this country view a smartphone as an essential, not a luxury, and VR is not even in the same category. It's a toy right now. And for £700, not many are going to take the plunge into the unknown. The only people buying at that price are those who know exactly what they're getting and why they want one.
you can also buy PC hardware on pay-monthly finance, you can also buy smartphones from £10 a month / less than a £100 sim free - of the nearly 1 billion handsets sold each year, only 60million are in the 5"+ iphone/S7 type territory
we aren't at that point with VR yet, we are at the IBM Simon stage of development, I'm sure quite a lot of people looked at that device and said it was too expensive and what was it even for anyway
the first consumer 4K TV's were $10k... now you can get one from $300... but we aren't at THAT stage of development yet
they aren't expecting to sell 10m+ Rifts/Vives, they are expecting to sell 1-2m... the fact that they said they had "plenty" of launch/preorder stock and ran out in 15 minutes goes to show the demand is there... but it also goes to show why I'm not getting too excited about "controller" games... because they aren't going to do dedicated VR AAA games for a percentage of 1-2m users, it'll be other games that bolt on VR support like driving games and flight sims etc.
no one should buy a VR headset expecting to play a Battlefield or GTA or whatever, that is gen 2-3 type territory
I actually think that if they'd done the headset at £300 they would have bigger problems with more people trying it and deciding its not good and writing it off... at £500+ they are pitching it to enthusiasts
Rift/Vive this year is still basically tech demo territory - they've gone from selling 50k, to 150k, to 1-2m, so they are going in the right direction, but this is not a mass market device yet
in fact, what VR will be used for by most people (e.g. non-gamers) the phone/headset type devices will suffice for basic entertainment/social apps, so there you are talking about adding $100 to a device that "most people" apparently have already as an "essential" - obviously its not "most" people as its 60m out of 1bn... but even 60m in sales is a market worth approaching