What is Oculus's competitive advantage? What do they have (technology, business advantages) that can't be duplicated by competing companies?

I don't see any technology and business advantage for Oculus in the future.

At this moment, Oculus may be hardware manufacture. it's the simplest perceived market leader. It dominates the entire VR device market immediately (with DK1 and DK2).

But technology isn't exclusive. HTC is making the Vive, which is technically competitive, and even better in some aspects. Sever other company also within the game and making pretty good VR headsets (Let's not include telephone-based VR device here). The key technologies here are the display and tracking, and none of them are exclusive to Oculus.

The VR software is usually supported by the leading Game Engines, which aren't exclusive to Oculus either. Both UE4 and Unity3D might be compatible with Rift and Vive and even Samsung Gear. So you'll easily enjoy most games on any headsets.

There isn't any clear VR app store strategy from Oculus also, and even they are doing, it's still hard to beat Steam VR, the app store has already embraced by the gaming market.

This is probably a part of the rationale (besides the productivity issue) that Oculus couldn't sell the Rift at a lower cost. they do not have another business model aside from selling hardware. The competition in the hardware market might be hard. and appearance into your total VR expense, probably Nvidia will have a bigger margin than the headset.

The only hanging factor here is that the VR social app being made by Facebook. It supposes to open up the who If it's a hit, it'll usher in new ads revenue to Facebook and it'll be an enormous success for both Oculus and Facebook.

It doesn't suggest Oculus will fail. It means the Rift won't be the subsequent iPhone.

So, overall, the VR devices will open up an entirely new market, but the most player here is going to be the applications, i.e. software. The games, and, more importantly, non-game applications. These are going to be the important meat to vary your life.

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