Silas understood what Kim meant by competing with Merta but he found it very funny as he has no plan to compete with them. Also, he doesn't think that his so-called competitor has what it takes to compete with him.
He was aware of their newly launched product: a device called an AR glass. He wasn't bothered by it as he knew of the massive advantage that he held.
Who would want an AR glass that costs so much when you can get a VR gaming pod that also comes with a VR game for almost the same amount?
Of course, Silas wasn't planning on selling the VR Pod for that cheap a price. Though he won't be making a loss if he sells it dirt cheap but that would greatly undervalue the device.
Silas understands how human psychology works. When a product that is of high quality and performance is put before one that is inferior to it, and the quality one is selling for a very low price, they would go for the inferior one.