The Oculus Rift is niche; so to value a 10 percent stake in your niche product at $2 million when that product requires another niche product is bad business. But that's exactly what the people behind Virtuix Omni was asking of Mark Cuban and the rest of the investors on the reality show Shark Tank.
The Virtuix Omni is a very large and expensive accessory for the virtual reality headset Oculus Rift. It's basically a round treadmill that, combined with special sneakers, lets the player run, jump and crouch in a video game. It uses an Oculus Rift and gun in the video — both separately purchased — but costs $500 for just the Virtuix Omni.
Needless to say, the panel thought it was cool but pointed out every flaw with the concept and business model.