Plus the cable tethers and the need to bolt and wire up the IR lighthouses to your livingroom walls vs the Quest that you can slide into your backpack and take with you and play virtually anywhere indoors.
The simplicity, polish and ease of use of the Quest and its ecosystem really killed the tethered VR future regardless of much more high-end the hardware was, just how the iPhone simplicity and UX polish killed the Nokia and Blackberry power-houses.
You are criticizing them for a industry standard practice. Make loss on the console, make it up with the software. With what they are doing with the Steam Deck it seems like they have learned a lesson about trying to make a profit on the hardware from their VR efforts.
But Valve has Alyx. Oculus tried to have a Mario in Lucky’s Tale, and Lucky is a super cute and appealing character, but gaming is older now. I had to look up the name of Lucky’s Tale to remember. Alyx has WAY more mindshare imho.
I wasn’t looking so much at cost as much as capability to innovate.
The manufacturing cost for the Oculus has to be far less than the Index since Valve reportedly isn't making much off their headsets. For argument if we say Meta's costs are $400/headset and Valve $900/headset, that still makes the Index over twice as expensive and it still can't run anything without being tethered to an expensive PC!
I don't know how you could seriously try to argue that kind of price undercutting isn't "innovating".
It's hard for me to hear your argument when you don't address the most obvious criticism.