Cheaper, lower-quality VR headsets will leave a bad impression on consumers. I don't think that's the direction we should be going. I'd rather see HTC and Oculus release higher-res, faster refresh rate HMDs, but I doubt they'd do that with no single GPU able to run those today.

You can further reduce the computational costs by using foveated rendering(http://research.microsoft.com/en-us/um/people/johnsny/papers...). You can use low-latency eye-tracking to spend more time rendering the portions of the frame that the user is actively looking at.

I think the combo of falling gpu prices, and clever hardware design means we will probably see headsets with effectively higher and higher resolutions sooner rather than later.

Wonder if that will help or hinder VR. Personally I think the Vive is just about the bare minimum needed for VR to barely be acceptable. If peoples first impression of VR is something less than that I doubt they'll be impressed enough to actually use VR for more than 15 minutes over the first 2 weeks after purchase.