What sort of VR headset do you expect for $99? At that price, you get Cardboard and Gear, at best, and those have underwhelmed the market and people who have tried them & Vive/Rift/PS.
The question is: why not lose money on the hardware, to accelerate distribution and put an awesome device in people's hands and then make money on software. So my suggestion would be to sell the $399 devixe for $99. Not push out something crappy
Currently they are the cheapest, and it's easier to reduce prices than to increase them, so maybe they are saving that for later, especially when they learn more about game sales and the business ?