I’m taking a quick break in China, and I finally got to enjoy a vibrant street performance featuring the iconic dragon and tiger for the New Year celebrations! I’m having a blast, though I might just burst from all the food I’ve been indulging in. What a way to go, though, right? Meanwhile, I’m sending my best wishes for the Year of the Snake to everyone. Now, let’s dive into the most exciting XR news from last week! (UPDATE: I had to push this newsletter out two days late because I fell ill right after halfway through writing it—not because of the food, don’t worry! I finally managed to get out of bed today, finish the piece, and chuckled revisiting my upbeat intro. Apologies for the delay—hope you still adore me!)
Top News of the Week
Meta’s Winning Q4 2024
Meta recently shared its financial reports for the last quarter of 2024, and they’re looking impressive, but there’s room for some contemplation. The standout news is that Reality Labs hit a record $1.08 billion in revenue, marking its highest quarterly income ever. Every year during Q4, Meta sees revenue spikes due to the popularity of their Quests as holiday gifts. Anticipation for success this quarter was high, especially with the Meta Quest companion phone app climbing to the top of the iOS store, 1 million gamers enjoying Batman Arkham Shadow, and the Quest reigning as Amazon’s best-selling console of 2024. Yet, the MR/VR field is not at its prime, so it was surprising to see such a significant quarter for Meta Reality Labs.
What we overlooked was the impact of Ray-Ban Meta glasses. Zuckerberg revealed that over 1 million Ray-Ban Meta glasses got sold in 2024, raking in over $300 million. Although the split between Meta and EssilorLuxottica’s profits isn’t clear, even if Meta only takes 30%, that’s over $100 million annually, more than $25 million each quarter, which if deducted from the $1.08 billion of Q4, suggests Quest-related revenues are the same as or lower than last year (mind you, we should also deduct last year’s Ray-Ban Meta/Stories revenues for accuracy).
This tells me two things: the MR/VR market, while not exactly booming, isn’t dead—it’s alive and kind of waiting for groundbreaking innovations to propel forward. The smartglasses market, admittedly, shows a lot of promise (though perhaps a bit over-hyped in my book). Zuck is particularly upbeat about Ray-Ban Meta, predicting the next version could sell 2 to 5 million units—a substantial figure indeed.
Zuckerberg is also optimistic about Horizon Worlds, projecting increased engagement and upcoming visual wow factors. While this growth is making Meta execs gleeful, it’s a bummer for developers with content on the Horizon Store who report that their businesses are getting hurt.
One more thing to note about these great figures is that despite the rosy revenue, the expenses were sky-high too—$6.05 billion, the highest in a quarter. A large chunk of this goes to R&D to outpace competition for the first consumer AR glasses, and a fair share is probably due to selling devices below cost. Analysts observe the pattern—the more Meta sells, the deeper its financial losses. Doesn’t seem sustainable, does it?
As Road To VR highlights, "Meta has poured $69 billion into Reality Labs since Q4 2020, yet raked in only $9.19 billion in revenue over the same period." If you’re pondering, expenses are only set to rise; Meta is set to keep the cash burning, with returns expected only in the 2030s.
Read more here. Additional context can be found here.
Other News That Caught Our Eye
Apple’s Ongoing Journey with AR Glasses
As always, Marc Gurman shares insightful tidbits about Apple’s pursuits in AR glasses, which are, naturally, very much ongoing. But it seems Apple’s strategy is still in flux. Gurman’s latest dispatch suggests Apple scrapped a pair of tethered AR glasses meant to link with iPhones and project large displays for users. The battery drain was too much, so they turned to Mac pairing, but lukewarm testing prompted the project’s halt altogether.
This doesn’t signal Apple’s retreat from AR glasses. Not by a long shot. At a hush-hush base in Santa Clara, Apple is experimenting with microLED displays for their glasses. Those displays are pegged as XR’s next big thing. Some Apple execs speculate we might see these Apple AR glasses around 2028—or later.
Mark Gurman notes, amid all these starts and stops in their AR glasses pursuits, Apple’s Vision Products Group (VPG) is feeling the strain, with vague directions hurting team morale. Innovation isn’t a smooth road, as I well know—it’s often frustrating, though eventually rewarding.
Check out further details here.
Happy Birthday, Apple Vision Pro!
Scrolling through my timeline the other day, I was greeted by an avalanche of Apple fans celebrating one year of the Vision Pro. It put a smile on my face, so I’ll hop on the celebratory bandwagon too: Happy Birthday, Apple Vision Pro! Thanks for stirring up competition in the XR field and pushing rival companies to accelerate their XR projects!
Read more from this celebration here.
News Worth Mentioning
VRChat’s Bold Move with Age Verification
A new era for VRChat has dawned, as VRC+ subscribers can now verify their age. This is provided by Persona, which involves either official documents or a face photo. It’s optional but opens doors to age-restricted worlds and badges signifying adulthood. VRChat is paving the way as one of the first major social VR platforms to roll out this feature, and I’m genuinely curious about how this will unfold.
People have long decried the interference of kids in their VR exploits, with no clear adult-kid separation. Now there’s a method involving sharing personal data with a third party. Will users trust Persona with their data for the perk of a kid-free zone, or will privacy concerns prevail? Since age verification applies only to a select few, I wonder which creators will restrict content to verified adults. Time will tell the story.
Back at VRROOM, I pitched an idea just like this, and many voiced they wouldn’t share personal docs with an external company just for VR age verification. We’ll soon see if their skepticism was justified.
Find more info here.
To Choose or Not to Choose: XReal One or Apple Vision Pro?
Comparing devices of different nature always throws me a curveball, but Scott Stein’s review of the XReal One glasses made me ponder. These glasses received rave reviews, including from Stein and Tyriel Wood, for their virtual movie-watching prowess. Apple’s Vision Pro first hits were all about oversized screens before your eyes… but if that’s the main draw, why spend $3,500 on a heftier device when a $600 lighter, specialized option exists? Sure, the Vision Pro boasts wider FOV, richer colors, and multiple functionalities… But entertain the musing for a sec.
More information can be located here.
Viture Shares Its New Pro XR Glasses
Viture just rolled out their Pro XR glasses, boasting 1920×1080 micro OLED displays, a 46° FOV, 49 PPD, and 120Hz refresh rate. They’re priced at $459 but come with a $50 discount for early buyers. Catch more info here.
Logitech Pen as Quest Tracker?
Meta Quest users, rejoice! Though there’s no Vive Tracker equivalent, we’ve got an alternative: the Logitech MX Ink pen, doubling as an object tracker for the Meta Quest. Recently, I caught a couple of videos showcasing the pen’s tracking ability, and it got me thinking about community innovations on the horizon. Importantly, the Quest can track both controllers and the pen simultaneously—freeing hands for controllers while tracking an additional object. I’m excited to witness what creative uses folks come up with.
Thanks for the links, Rob Cole and A.K. Check out more here.
Haptikos Enters XR Haptics Scene
New kid on the block, Haptikos, has emerged from stealth in Sunnyvale and Athens, presenting a striking hand exoskeleton prototype. Part of their ‘Haptik OS’ ecosystem, it couples hardware and software for finger-tracking and tactile sensations, mimicking the texture of virtual objects. Their prototype is priced at $2,500 currently, though it’s expected to dip to $1,000 by its scheduled 2026 launch—quite competitive against other XR glove options.
The Haptikos team is noteworthy: I recall a quick trial run at AWE a few months back with an earlier glove version—already quite promising. Explore more about them here.
Meta Comes Down Hard on Leakers
Meta is clamping down on leaks sternly, pledging to ax any employee caught leaking. Zuckerberg reportedly felt compelled to strip back transparency due to the continuous leaks. “We strive for openness, but every word leaks,” he lamented. “It’s frustrating.” Unintentionally ironic, the incident was, you guessed it, leaked.
Get more context here.
Mixing Quest Passthrough with ChatGPT
The same individual pioneering Quest passthrough access is gearing up to introduce an integration of Meta Quest 3’s camera with OpenAI GPT-4o. The amalgamation of passthrough visuals and AI promises immense potential—I’m eagerly awaiting its official launch!
Source more details here.
The Grim Realities for VR of Late
The VR realm’s rough patch lingers, with three unsettling updates this week. Orbus VR, dating back to 2017 as the first VR MMO, is closing its doors. Fast Travel Games, an illustrious studio, is axing 30 positions following underwhelming sales in 2024. Vertigo Games is unloading its Springboard VR arcade platform to Synthesis VR for organizational streamlining.
For more on these developments, see Orbus VR, Fast Travel Games, and Springboard VR.
Content Updates Aplenty
- COLD VR rescheduled: February 11
- Aerial combat sim Aces of Thunder announced for PSVR 2 and PC VR in 2025
- Demeo crosses over to D&D as ‘DEMEO X DUNGEONS & DRAGONS: BATTLEMARKED,’ a standalone game
- Cave Crave, a climbing-inspired spelunking simulator, opens for preorder on the Horizon Store for $13
- Daisy Ridley will feature in ‘Trailblazer: The Untold Story of Mrs. Benz,’ detailing Bertha Benz’s automotive legacy, launching on Quest this March
- Beyond Blue: After the Storm takes ocean exploration to VR, available in the Meta Store for $15
- E McNeill’s Darknet lands on Quest as ‘Darknet: Remastered,’ priced at $9.99 on the Horizon Store
- Craftrium lets Apple Vision Pro users curate a virtual aquarium for free
- Synth Riders is marking Super Bowl LIX with a Kendrick Lamar Experience next month—an Apple Vision Pro exclusive
- Farming Simulator VR, a fresh experience unrelated to the existing series, joins the Horizon Store on February 28
- Owlchemy Labs snips prices: Vacation Simulator and Cosmonious High are forever $19.99 across Meta, Steam, Pico, and Apple
- Ahoy! is an emotionally moving Apple Vision Pro story experience
- Upload VR’s XR News Round-Up compiles more XR news snippets
Catch more details in the follow-on links: COLD VR, Aces Of Thunder, Demeo, Cave Crave, Trailblazer, Beyond Blue: After The Storm, Darknet, Craftrium, Synth Riders, Farming Simulator VR, Owlchemy Labs, Ahoy!, XR News Round-Up.
Some Content Reviews
‘Path of Fury: Episode I — Tetsuo’s Tower’ is making waves according to Road To VR’s preview. As an on-rails game, it offers a decent workout while channeling an 80s action game vibe.
StageTime VR is crafting a burgeoning multiplayer karaoke scene. It’s nascent, but their attention to features like spatial audio feels promising for its progression.
Discover more via Path of Fury: Episode I — Tetsuo’s Tower and StageTime VR.
Other Tidbits
- The VR Games Showcase returns in March with its "biggest lineup yet" for XR Games
- Mindshow introduces an enterprise-oriented virtual animation tool
- XR4Europe unveils several reports reflecting the XR scene across Europe
- XR Bootcamp publishes a comparative analysis of current smartglasses on the market
- Some users bemoan Quest’s v74 update for worsening the UI experience
- Samsung trademarks “Beyond”—but it’s unlikely to revisit a name shared by another headset
- Astronauts are using HTC headsets to alleviate solitude during space expeditions
Check out each topic respectively by visiting the links.
Partner and Friends Updates
The story of Google Blocks isn’t over—say hello to Open Blocks, revived by the Icosa Foundation, who previously transitioned TiltBrush into Open Brush. Open Blocks rises from Blocks’ ashes, now open-source on GitHub, free forever. And in memory of Google Poly, the company is crafting Icosa Gallery—a spiritual successor for 3D creation sharing and downloading. Aren’t they just marvelous?
More context is available through Reddit on Open Blocks and Upload VR’s take.
XR Amusement
While it’s designed as a cave simulator, you might mistake it for something else entirely. Check out this amusing link.
Donations Welcome
As with last week’s closing note, I want to steer this space toward supporting those afflicted by war-related adversities. Please consider donating to the Red Cross to mitigate the current humanitarian challenges in Ukraine. Here’s the link below. Before I list the link, I’d like to extend my heartfelt gratitude to all my Patreon supporters for their ongoing encouragement:
Here you are—here’s how you can donate: Red Cross in Ukraine.
(Header image by Meta)
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