Hacker News new | ask | show | jobs
by colechristensen 2055 days ago
It’s specifically low cost infinite scaling SaaS where the product is sold for so little or nothing that any amount of customer service wipes out the entire business plan.
2 comments

They can afford customer service in this case, since stuff is being sold for $20-$30 a pop with $300 devices.
It is quite possible and a frequent point of speculation that the oculus hardware is sold at a loss. If they’re near the standard, they’ll take something like a 30% cut of app revenues. That $5-10 per title pays for everything, including some of the hardware and development and marketing, etc.

How much do you think a single support case costs? It could easily be the lifetime profit of a single average user.

Quite sad that a lot of hard work basically went down the drain because of no apparent fault.