Sony investing money into the development of VR headset Project Morpheus is a "really bad idea" as it will be hard to make money on the device, video games analyst Michael Pachter has told DualShockers.

"I think it's a bad idea for multiple participants to chase it, and I think it's a really bad idea for Sony," said Pachter.

The situation with Oculus Rift, however, is different because the firm is a start-up.

"I have no problem with the Oculus Rift, that they're trying it, because they're a start-up and that's a very small market and if they dominate it that's great, but if it's a small market and there are multiple players, it's gonna be hard for anybody to make money.

"And I don't think it's gonna be a big market. It sounds interesting, but I don't think there will be enough content to justify making the capital investment to create the headset. I think it's chicken and egg. If there's no content you're not gonna buy a virtual reality headset, and if you don't buy a virtual reality headset, there won't be any content, because no one will make a dedicated game for a very small audience."

Pachter concluded: "I think the Oculus guys are gonna be very happy with a million sales. If they get a million sales, they're gonna get a ton of money. A million sales is a huge success for Oculus Rift.

"It's just a hiccup for Sony."

Neither Oculus Rift or Project Morpheus have firm dates for commercial launches.

Source: DualShockers