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"And while prices for mobile VR equipment have come down, it still costs about $850 for each Samsung Gear VR headset plus the Galaxy smartphone that slides into it — costly enough that the firm doesn't have a rig for each client."

I thought Samsung Gear VR cost like $100 and the smartphones were like $400, tops?

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The cheapest phone that can be officially used in the GearVR (Galaxy s6, no curve) costs $579.99 unlocked from carrier (no contract). The gear VR is an extra $100, so the total cost is about $700. A bit shy of $850 but still a long ways away from cheap.

I think you may be mixing up carrier subsidized smartphone costs with actual smartphone costs. Unsubsidized smartphones that are good enough to run VR applications smoothly are still $600-$700.

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