Facebook’s Oculus Rift Loses Round 1 With Product Shipment Delays
Facebook ( FB ) lost its first game in the virtual reality field, as its Oculus VR unit announced that a shortage of parts will delay some shipments of its high-tech Rift headsets. The Rift goggles began shipping to more than 20 countries and regions one week ago. Oculus CEO Brendan Iribe acknowledged the delay in a tweet : “First set of Rifts are going out slower than we originally estimated, so we’re giving free shipping for all preorders, including international.” Facebook stock was down 3%, near 113, in early afternoon trading in the stock market today , though it was not clear if the market action was related to the shipment delays. Facebook has said Oculus will not be material to its bottom line this year. Deutsche Bank analyst Ross Sandler said in a research note Monday that Facebook’s first-quarter results “may come in light,” in what he described as a “potential growth reset.” Sandler maintained a buy rating on Facebook with a 145 price target. Oculus did not say how many Rift shipments were delayed or when the problem might be fixed. It said buyers hit with the delay will receive an update by April 12. Preorders for the $599 Oculus Rift headsets began in January. Facebook has not said how many orders it’s received. So far, 30 games are available for the Rift, with more than 100 games expected by year-end. Game prices range from $9.99 to $59.99. Facebook sees Oculus Rift as a game changer , starting with games but soon extending to other areas such as sports events, as users put on the Rift goggles for deep-seated immersion. A dismantling of the Rift by iFixit showed the Oculus contained chips from STMicroelectronics ( STM ), Texas Instruments ( TXN ) and Cypress Semiconductor ( CY ). STMicroelectronics supplied the Rift with an ARM ( ARMH )-based microcontroller. Cypress supplies a hub controller, which allows for multiple USB-connected devices to be plugged in at once. Texas Instruments is supplying an LED driver, which controls for image brightness and grayscale. Image provided by Shutterstock .