Perhaps not every year but frequently.
Well, I've seen/read a number of intervues of Palmer Luckey, and I can't say that I recognize your assertion that they will churn out VR headsets at a brisk pace.
(Having said that, starting up, there will be opportunities for technical improvements in terms of screens, lenses, interfaces and so on, and later diversification can focus on size/weight/price points and design. In the very long run, headphones are just as relevant an analogy as TV-screens.)
In terms of graphics requirements however, not too much more can happen, unless the underlying paradigm changes. If we use my example from above, and compare the HD4870 with the R9 290x, six years have bought us a factor of three to four in ALU power and bandwidth. At roughly twice the power draw. If that pace holds true going forward, then in 2020, we would have another factor of 3-4 at, yet again, another factor of two in power draw. That's not a blistering pace, and again this assumes that the pace of lithographic advancement doesn't keep slowing down going forward.
So there is every reason to believe that, in terms of graphics processing load, we'll be looking at no higher than split 3960x2160 (or at most 5120x2880) at 120 Hz for a very long time indeed. We simply won't have hardware to drive it.
Now Luckey is an extremely technology optimistic individual, who assumes PC-tech to take great strides going forward, and of course if you have that fundamental outlook, standing still at Xbox One levels of performance for the next 3-5-8-? years is a horrible prospect.
Rather than discuss Luckey, let me quote him directly from
this pretty good interview:
RPS: Conventional wisdom says, people look at their options and say “Well, do I want to put in the time and money to secure a really good PC, or do I want to get a PlayStation box that is pre-made for me?” If both have a VR options, what do you think most people will pick?
Luckey: I think that’s a very complex question that depends on what we do in the future, largely. But, you know, whatever your assessment of consoles is today, relative to PCs, that’s going to be much different a year from now, and then five years from now, and then eight years from now. One of those is going to remain the same, the other is going to move really really fast. The top of the line PCs from a few years ago are the $300 back to school special laptops. And that’s only taken a few years for that to happen.
That’s going to continue to happen in the PC space. And there’s gonna be a lot more power on both the high end and even on the low end for VR than any other platform.
And then the other thing is, I think it’s a bold choice to say, will people buy a PC for VR or buy a console for VR? Because most people have a PC. Not everyone has a high enough end PC to run VR but in a couple of years, like I said, all PCs are going to be a lot better. even the dirt cheap ones. It’s more a question of, I already have a PC, which do I want to buy to have VR now?
RPS: How do you plan to expand into mobile? What’s happening there?
Luckey: That is the long term end-game for the mobile hardware. We’ll get as powerful as top of the line PCs today, and you’ll be able to build it into the VR headset for next to nothing. That means you can do a lot of different things without being tethered to an expensive box, it can all be in the headset itself, and it’ll take years to get there. It’ll take years to get to an experience that is as good as the PC one today, but it is- that is the eventual endgame.
Sorry about the long quotes, but I think they demonstrate their strategy clearly. They focus on PC now because they are in a technology/concept development phase. Really long term, they aim for the even more ubiquitous platform, cell phones. Consoles, being low volume, fixed and closed IP platforms, just doesn't make sense to target. The platform holders may choose to add VR support to their platforms at some point, but that is not for Oculus to decide.
He is way more optimistic about future performance levels on PC than I am. He is also much younger, it may have to do with testosterone levels.