Case file: a category that formed
Why did early virtual reality fail, and when did consumer VR become viable?
Formed since 2026-10-25 · ledger #26
Phone displays and consumer GPUs made a few-hundred-dollar headset possible in 2012.
Short answer
VPL Research (1984), Jaron Lanier's company, sold the first commercial VR gloves and headsets; it went bankrupt in 1990 and its patents were later bought by Sun Microsystems. Rendering and displays cost tens of thousands of dollars. Oculus (2012) built a headset from phone-grade displays and gaming GPUs; Facebook bought it for about $2B in 2014.
- Killing constraint
- GPU and display cost
E1 Cost curve - Crossing
- 2012
Phone-panel displays and consumer GPUs make the Oculus Rift prototype possible. - Who won
- Oculus
founded 2012
Convincing VR needs high-resolution displays and fast rendering; both cost workstation money until smartphones and gaming GPUs.
Graveyard
Companies that died proving people wanted this. Capital shown where it was disclosed.
| Company | Years | Capital | How it died | Source |
|---|---|---|---|---|
| VPL Research | 1984–1990 | — | Bankruptcy, 1990; patents later sold to Sun Microsystems | source M |
Who won once the constraint crossed
- Oculus (founded 2012) — acquired by Facebook for about $2B in 2014 source
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