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The original Game Boy did sell quite well despite low resolution and ghosting. There were other devices with better screens and higher price. People chose the lower price and the worse screen. Is this also plausible for VR? The success of the Quest suggests: yes.

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but at the time the market was different and the product at the time was an improvement over single purpose game toys by allowing changing games. Totally different story. Of course there is a low price market for lower resolution and compute... But there is a reason that retina displays on all device types are a thing too, usually at higher price points, at least initially. And economies of scale, manufacturing hardware depreciation etc. will bring these devices also to lower price points sooner or later.

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