I’ve taken a quick trip back to China and, amid all the traditional New Year festivities, I finally caught an amazing street show featuring the quintessential figures of the dragon and the tiger! I’m having such a blast here, though I’m eating so much that I’m beginning to wonder if I might actually burst soon. If that happens, at least it was for a good cause! While I roll out my warmest wishes to everyone for the Year of the Snake, let me dive into the biggest XR news from the last week. (UPDATE: This newsletter took two days longer to publish than I planned because I ended up quite sick for a bit after penning the first part—not because of the food, thankfully! Today is the first day I could finally sit in front of my computer. Rereading that sunny opening actually cheered me up. I apologize for the delay, and I hope I’m still in your good books!)
Top News of the Week
Meta’s Impressive Fourth Quarter of 2024
Meta recently unveiled its financial performance for the last quarter of 2024, and the figures are pretty impressive, though there are a few points worth pondering. The highlight is Reality Labs hitting a record $1.08 billion in revenue for the quarter, the highest ever for Meta’s division. Traditionally, Meta enjoys a spike in revenue during the fourth quarter because Quests are such popular gifts over the holiday season. We expected another fantastic Q4 this year, especially with signs like the Meta Quest companion app topping the iOS store, a million players engrossed in Batman Arkham Shadow, and the Quest reigning as Amazon’s top-selling console for 2024. It was indeed a surprisingly strong quarter for Meta Reality Labs, despite the current stagnant phase for MR/VR.
We hadn’t factored in the impact of Ray-Ban Meta, though. Zuckerberg noted that in 2024, Meta sold over a million Ray-Ban Meta glasses, generating upwards of $300 million in revenue. It’s unclear how this revenue is split between Meta and EssilorLuxottica, but assuming Meta took a 30% cut, that accounts for more than $100M in revenue for the entire year, averaging over $25M per quarter. When you subtract this from the $1.08B in quarterly revenue, it suggests that Quest-related earnings, while still substantial, may not vastly exceed or could possibly even align with last year’s figures (accounting for last year’s Ray-Ban sales would refine this calculation).
This situation underlines two key trends for me: the MR/VR market remains vibrant and slightly growing, though it’s at a standstill, anticipating some groundbreaking advancement for significant growth; and the smartglasses market, despite perhaps being slightly overhyped, is poised for promising potential. Zuck’s excitement for Ray-Ban Meta is contagious, forecasting the next edition could hit anywhere between 2 to 5 million in sales, which would be quite an achievement.
Zuck’s also quite optimistic about Horizon Worlds, noting its user base is expanding and will become even more visually appealing this year. Indeed, the whole Horizon OS encourages users to head into Horizon Worlds, bringing smiles to Meta executives but stirring unease among developers who publish content on the Horizon Store.
One last thing to consider with these positive numbers is despite substantial revenue, Meta’s costs were hefty as well: a staggering $6.05 billion, the highest for any quarter. Much of this expenditure went into R&D, aiming to outpace competitors in creating the first consumer AR glasses. However, another significant portion comes from selling devices below cost. This trend shows that the more Meta sells, the more it incurs losses, which is not the hallmark of a sustainable business model.
As Road To VR aptly points out, "Meta has injected an enormous $69 billion into Reality Labs since Q4 2020 but has only reaped $9.19 billion in return during this period." Rest assured, expense escalations are imminent, with Meta explicitly stating that heavy investments will only bear fruit heading into the 2030s.
Apple Still in Search of the Perfect Strategy for Glasses
According to Marc Gurman of Bloomberg fame, Apple isn’t giving up on AR glasses yet—the tech giant is still deeply invested, although they haven’t landed on the ideal strategy just yet. Gurman’s recent report shared that Apple axed an idea for tethered AR glasses that would link up with an iPhone to show an expansive screen to the wearer. The concept suffered from excessive battery drain on the phone, leading to a pivot toward the Mac as an alternative. However, poor feedback from early tests led to its complete cancellation.
This doesn’t signify Apple has given up on AR glasses altogether. The company has a dedicated team stationed at a stealthy facility in Santa Clara, engrossed in developing microLED displays aimed at AR glasses—a tech that shows a bright future for XR. The anticipation now is that Apple’s AR glasses might only see daylight as early as 2028, if not later.
Gurman highlights amidst all these AR glass cancellations and plan shifts, there is a prevailing sense among Apple’s Vision Products Group employees of a “lack of focus and clear direction,” impacting team morale. Indeed, working on pioneering tech is no walk in the park—it’s frustrating and demanding…but ultimately rewarding.
Marking One Year of Apple Vision Pro
Recently, my social media was flooded with Apple’s fans celebrating the Vision Pro’s birthday. Since everyone was on the hype train, I thought I’d jump aboard: Happy Birthday, Apple Vision Pro! You’ve brought a breath of fresh competition into the XR space and spurred other companies to accelerate their XR initiatives!
Other Relevant News
VRChat Pioneers Age Verification
VRChat now offers age verification for VRC+ subscribers. This process, facilitated by Persona, involves submitting official ID documents or a facial photo. Though not mandatory, it allows access to age-restricted worlds and showcases a badge confirming adult status. VRChat now stands as the first major social VR realm to offer this feature. It will be interesting to see how this plays out, especially considering some users had grown tired of interactions being marred by younger players. Now, there’s a method to create a more separated experience by age, though it involves sharing some data with an external entity. Will users trade privacy for a quieter experience? This feature’s accessibility is still limited, so only time can reveal how creators will adapt to these verified segments.
XReal One’s Virtual Display vs. Apple Vision Pro
Comparing devices can be tricky, yet Scott Stein’s review of XReal One has me pondering. These glasses are praised for creating an excellent virtual screen for movie watching, as highlighted by Tyriel Wood and others, too. Apple initially marketed Vision Pro with similar aspirations of providing a grand virtual screen experience. So, why not opt for a lighter, simpler device designed purely for that function at a fraction of the Vision Pro’s $3500 price? Now, I know what you’re thinking: the Vision Pro boasts superior FOV, vibrant colors, and versatility… but it’s worth letting this thought simmer.
Viture Unveils New Pro XR Glasses
Viture has introduced its fresh Pro XR glasses that feature 1920×1080 micro OLED displays, a 46° FOV, 49 PPD, and a 120Hz refresh rate. Priced at $459, there’s currently a $50 discount for early buyers.
Logitech Pen: A New Tracker for Meta Quest
While there’s no equivalent to the Vive Tracker for the Meta Quest, developers often rely on a Quest controller to track objects in XR. Enter the Logitech MX Ink pen—a new alternative. Two videos this week illustrated the pen serving as a tracking tool with the Meta Quest, which I found intriguing. Notably, the Quest can simultaneously track both controllers and the pen, making it possible to track an object while having controllers readily available for users. I’m eager to witness the innovations the community will develop with this tool. Thanks to Rob Cole and A.K. for the video links!
Haptikos Ventures into the XR Haptics Arena
Startup Haptikos has emerged from stealth with a hand exoskeleton prototype. Part of the Haptik OS ecosystem, it offers integrated hardware and software designed for finger tracking and haptic feedback to simulate tactile textures. The prototype currently costs $2500, with plans to reduce it to $1000 by 2026, presenting a competitive alternative in the XR gloves market. My quick trial with an early version at a private demo during AWE a few months back already left a positive impression.
Meta Cracks Down on Leaks
Meta is tightening the leash on leaks, vowing to terminate any identified culprits. Following several leaks, Zuckerberg informed employees of reduced transparency moving forward. His candid remark, “We try to be really open, and then everything I say leaks. It sucks,” underscores the frustration. Ironically, this announcement happened during a leaked meeting. Oh, the irony.
Blending Quest Passthrough with ChatGPT
The same innovative thinker uncovering the best way to access Quest passthrough is now set to blend the Meta Quest 3’s camera with OpenAI GPT-4o. I’m eager to see how this integration of passthrough and AI unfolds!
More Bad Tidings for VR
The VR ecosystem continues facing a rough patch, with this week’s news echoing earlier challenges. Orbus VR, the pioneering VR MMO from 2017, is closing its doors. Fast Travel Games, among the successful studios, is letting go of 30 staff due to unexpectedly low 2024 sales projections. Additionally, Vertigo Games is selling its arcade platform Springboard VR to Synthesis VR as part of organizational streamlining.
New Developments in VR Content
- COLD VR is now set for release on February 11.
- Aces of Thunder, an aerial VR combat game, enters PSVR 2 and PC VR headsets in 2025.
- Demeo gets a fresh spin in a Dungeons & Dragons adaptation titled DEMEO X DUNGEONS & DRAGONS: BATTLEMARKED. This is a stand-alone game, not a Demeo DLC.
- Cave Crave, inspired by Climb, brings you a claustrophobic caving simulator, available for preorder on the Horizon Store at $13.
- Trailblazer: The Untold Story of Mrs. Benz, starring Daisy Ridley, retraces the tread of Bertha Benz, a 19th-century automotive pioneer, and lands on Quest in March.
- Beyond Blue: After the Storm, the VR expansion to the 2020 game Beyond Blue, offers oceangoers a fresh VR venture, now accessible on the Meta Store for $15.
- E McNeill’s VR classic Darknet graduates to Quest devices as Darknet: Remastered, accessible for $9.99 on the Horizon Store.
- Craftrium allows you to set up a spatial aquarium in your space for free with Apple Vision Pro.
- Synth Riders is gearing up for a unique Kendrick Lamar Experience next month in celebration of Super Bowl LIX, exclusively on Apple Vision Pro.
- Farming Simulator VR is a new VR entry for farm-game enthusiasts, releasing on the Horizon Store on February 28.
- Owlchemy Labs announces permanent markdowns on Vacation Simulator and Cosmonious High, now $19.99 across Meta, Steam, Pico, and Apple.
- Ahoy! presents an emotionally engaging tale via Apple Vision Pro.
- Lastly, Upload VR shared its regular XR News Round-Up, compiling various tidbits of XR updates.
Game Reviews
- Path of Fury: Episode I — Tetsuo’s Tower offers an engaging experience with its rail-following gameplay, promising a solid workout wrapped in an 80s action game style, as documented by Road To VR.
- StageTime VR shows promise as a budding multiplayer karaoke venture, with the team’s focus on spatial audio hinting at a bright future.
Additional News
- The VR Games Showcase is making a comeback in March, pledging the "biggest line-up yet" of XR Games.
- The animation tool Mindshow has introduced an enterprise-focused virtual animation solution.
- XR4Europe released insightful reports examining the XR scene across varied European nations.
- XR Bootcamp presents a thoughtful comparison of the smartglasses array on the market.
- The Quest v74 update seems to manage the challenging task of further complicating the Quest UI.
- Samsung trademarks the “Beyond” name, though it’s unlikely they’d baptize a headset with an existing name.
- Astronauts share insights on how HTC’s headset aids their well-being during isolated missions in space.
Updates from Partners (and Friends)
Google Blocks experiences a revival in the form of Open Blocks! Courtesy of the Icosa Foundation—the same team behind Open Brush, a revival of the defunct TiltBrush—Open Blocks reemerges, remolded from Google’s original source code released upon Blocks discontinuation. Following its Steam release, Open Blocks is now on the Horizon Store and open source on GitHub, ensuring its free, open-source presence indefinitely. Remember Google Poly, the 3D creation/exchange platform? The Icosa Foundation is poised to introduce a spiritual successor: Icosa Gallery. Hats off to these remarkable folks at Icosa!
A Dash of XR Humor
Here’s a funny notion—it’s a cave simulator…but it could easily be misconstrued as something entirely different. Check out the hilarious link!
Support for a Greater Cause
Continuing a new tradition, I’m urging support for humanitarian relief. Instead of pointing you towards donations for my blog, please consider directing aid to the Red Cross, aiding those impacted by the conflict in Ukraine. I’ve included the donation link below. Before we part, a heartfelt thanks to my Patreon supporters who continually shower me with their generous backing:
- Alex Gonzalez VR
- DeoVR
- GenVR
- Eduardo Siman
- Jonn Fredericks
- Jean-Marc Duyckaerts
- Reynaldo T Zabala
- Richard Penny
- Terry xR. Schussler
- And many other wonderful patrons
Now, here’s the link to help support The Red Cross in Ukraine.
(Header image by Meta)
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