Subsidized my ass. The XBone controller costs 60€ and I can't see the BoM of the HMD + camera going above 150€ tops.
During the kickstarter campaign, the company mentioned they wanted the price of the consumer version to be around $350, and they probably took that value from BoM + manufacturing + distribution + 30% margins.
This is almost twice that value, or even more for us
dirty european peasants.
This price isn't good for VR. It'll hurt the industry's adoption rates and subsequently the dedication of game developers.
Just to point out how absurd the £500 price is, it's cheaper to buy an unlocked
Samsung Galaxy S6 and a separate
Gear VR.