I recently popped back to China and had the chance to witness a vibrant street show featuring the traditional dragon and tiger figures in celebration of the New Year. It’s been a delightful visit, although I must admit, I’ve been indulging in the local cuisine to the point where I’m starting to feel like I might burst. What a way to go! Anyway, I’d like to extend my warmest wishes for the Year of the Snake and share some top XR news from this past week with you. (UPDATE: This newsletter is coming your way a couple of days later than planned because I was laid up with an illness—not the food, I assure you—after drafting half of it. Just today, I’ve managed to peel myself off the bed, sit at my computer, and finish it. Re-reading that upbeat intro did bring a smile to my face, I hope you can forgive the delay and still enjoy the read.)
Top News of the Week
Meta had a great Q4 2024
Meta’s financial report for the last quarter of 2024 reveals impressive results, though there’s plenty to ponder. The solid news is that Reality Labs reported a groundbreaking $1.08 billion in quarterly revenue, their highest yet. Now, every Q4, Meta typically sees a revenue surge—partly due to the Meta Quests being popular holiday gifts. This year, several indicators pointed to a promising Q4: the Meta Quest companion app topped the iOS store charts, Batman Arkham Shadow saw a million players, and the Quest was Amazon’s best-selling console of 2024. Despite the mixed health of the MR/VR industry, this quarter exceeded expectations, thanks in no small part to the Ray-Ban Meta glasses. Zuckerberg shared that in 2024, Meta sold over 1 million pairs of these glasses, adding more than $300 million to their revenue. The exact breakdown between Meta and EssilorLuxottica profits remains unclear, but even if Meta claimed a modest 30%, it still means a $100 million contribution for the year.
This scenario underscores a couple of trends: MR/VR isn’t dead and is inching upwards, albeit waiting for innovative breakthroughs to propel it forward. Meanwhile, smartglasses are emerging with a promising future, perhaps hyped more than they should be. Zuckerberg’s optimistic that future iterations of the Ray-Ban Meta glasses could sell two to five million units—a significant leap.
He’s also optimistic about Horizon Worlds, which has shown growth and is expected to become even more visually compelling this year. However, this focus on the Horizon OS guiding users to Horizon Worlds cheered Meta execs but has adversely affected developers on the Horizon Store. One caveat amid these staggering numbers is the high expenses—$6.05 billion—the largest they’ve recorded in any quarter. This includes R&D to stay ahead in AR glasses development, and noteworthy losses occur when devices are sold at a loss. Historical data show that Reality Labs’ losses scale with increased sales. Unfortunately, it doesn’t seem sustainable. Road to VR notes that "Meta has spent $69 billion on Reality Lab since Q4 2020 but only earned $9.19 billion in return." For those curiously waiting, more expenses are on the horizon, with returns expected only by the 2030s.
For further insights: Meta’s Q4 2024 financials revealed | Leaked memo hinted at good Reality Labs revenues | Meta Reality Labs’ record revenues and losses | 1 million play Batman Arkham Shadow | Ray-Ban Meta glasses sell 1M+ units | Horizon Worlds’ anticipated enhancements
Other Relevant News
Apple is still exploring its AR glasses strategy
Apple, as reported by Marc Gurman, continues its AR glasses development journey, albeit without a clear-cut strategy. Apple’s plan for tethered AR glasses, initially envisioned to connect to iPhones for a larger screen display, faltered due to excessive battery drain concerns and poor feedback from trial runs with a Mac alternative, causing the cancellation of these glasses.
However, Apple hasn’t shelved its AR ambitions. A team in Santa Clara is reportedly working on developing microLED displays tailored for AR glasses—these innovative displays hold promise in the XR arena. Predictions suggest we may see Apple’s AR glasses emerge in 2028, if not later.
This delay has reportedly bred confusion and dwindled morale among Apple’s Vision Products Group (VPG) members, navigating the often frustrating waters of emerging tech development.
For further details: MicroLED displays in the works at Apple | AR glasses cancellations
Celebrating a year of Apple Vision Pro!
Recently, my X timeline was lit up with Apple enthusiasts celebrating Apple Vision Pro’s first anniversary. Joining the festive mood, I too want to say: Happy Birthday, Apple Vision Pro! Thanks for sparking competition in the XR landscape and prompting competitors to fast-track their XR plans.
More birthday celebrations: Celebrate with Apple fans
Noteworthy Mentions
Age Verification comes to VRChat
VRChat now offers age verification for its VRC+ subscribers, facilitating access to age-restricted worlds via a service by Persona, which offers verification through official documents or a facial photo. While optional, those verified can proudly display an adult badge. It’s the first major social VR platform to offer this feature, and its impact remains to be seen, particularly in the longstanding issue of kids disrupting the experience, now mitigated—albeit requiring sharing personal data with Persona.
For further discussion: Details on VRChat’s verification
Weighing XReal One against Apple Vision Pro
I’ve always hesitated to draw parallels between different devices. Still, Scott Stein’s take on the XReal One glasses got me pondering. Hailed for immersive movie viewing, why splash $3,500 when the XReal One offers a lighter, cost-effective alternative tailored just for that purpose? This thought challenges the Vision Pro’s all-rounder aura but is worth considering.
Further reflections: XReal One Review
Viture introduces Pro XR Glasses
Viture unveiled its Pro XR glasses, boasting 1920×1080 micro OLED displays, 46° FOV, 49 PPD, and a 120Hz refresh rate at $459, with a limited-time $50 discount.
Excited to learn more? See Viture’s announcement
Logitech Pen: The Tracker Meta Quest Needs
Until now, the Meta Quest lacked an equivalent of the Vive Tracker, but the Logitech MX Ink pen might just fill that gap. Two videos this week delved into its tracking capacity in conjunction with the Quest, highlighting its potential for tracking a separate object while maintaining controller use. I’m eager to see the innovations this will inspire.
Discover more: Using the Logitech Pen as a tracker | Educational usages of the Logitech Pen
Haptikos Shakes Up XR Haptics
Sunnyvale and Athens-based startup Haptikos emerged from stealth, debuting a hand exoskeleton prototype as part of its Haptik OS, designed to track fingers and deliver haptic feedback, simulating textures. Initially priced at $2,500, they plan a $1,000 price in 2026, making it a more affordable option than most XR gloves. Having sampled an early model at AWE, I can vouch for its potential.
For more insights: Explore Haptikos
Meta gets serious about stopping leaks
Meta is intent on tightening its ship by dismissing employees involved in leaks. Zuckerberg expressed frustration over leaks in a meeting which, ironically, was leaked. The effort to maintain transparency backfires each time, prompting a reevaluation of how much is shared internally.
Discover Meta’s strategy: Meta on handling leaks
Quest’s Passthrough and ChatGPT: A Powerful Combo
A developer fine-tuning Quest passthrough is set to release an integration with OpenAI’s GPT-4o. The anticipated release melding passthrough and AI could be transformative, and I’m keen to see it in action.
Waiting for more info? The developer’s passtrough integration journey
More Troubles for VR
This week’s news doesn’t paint a rosy picture for VR: Orbus VR, the oldest VR MMO, is closing shop; Fast Travel Games is downsizing by 30 due to underwhelming sales; Vertigo Games has sold Springboard VR to Synthesis VR to streamline operations.
Get details: Orbus VR’s farewell | Fast Travel Games layoffs | Springboard VR’s sale
Exciting Developments in VR Content
New announcements include the upcoming release of COLD VR on February 11 and Aces of Thunder slated for a 2025 release on PSVR 2 and PC VR headsets. DEMEO X DUNGEONS & DRAGONS: BATTLEMARKED also emerges as a standalone game, separate from Demeo, and Cave Crave offers a Climb-inspired spelunking simulation, now available for pre-order.
Explore more about these releases and updates: COLD VR | Aces Of Thunder | Demeo | Cave Crave
Special Mentions in Gaming
Other fascinating content includes Trailblazer, starring Daisy Ridley, debuting on Quest in March; Beyond Blue: After the Storm now live on the Meta Store; Darknet’s move to Quest headsets as Darknet: Remastered; and many more exciting developments, all showcasing VR’s versatility in storytelling and gameplay experiences.
For a comprehensive look: Trailblazer | Beyond Blue | Darknet on Quest
Content Reviews
Here’s a glimpse into some content reviews:
- Path of Fury: Episode I — Tetsuo’s Tower gets a nod for its blend of rail-shooter gameplay and nostalgic 80s theme, also touted as a noteworthy workout.
- StageTime VR is in its nascent stage but already touted as highly promising in multiplayer karaoke, thanks to detail-oriented features like spatial audio.
Review more about these titles: Path of Fury | StageTime VR
Other Updates
Preparations for the VR Games Showcase in March promise a hefty lineup of XR Games. Elsewhere, Mindshow advances enterprise virtual animation tools, and XR4Europe shines a spotlight on XR trends across Europe. New analysis comparing smartglasses from XR Bootcamp adds depth to our understanding of market offerings.
For more updates: VR Games Showcase | Mindshow’s new direction | XR4Europe’s reports
Community and Innovations
In partner highlights, Google Blocks finds new life as Open Blocks courtesy of the Icosa Foundation. Initially launched on Steam, Open Blocks is now freely available on the Horizon Store and released as open-source on GitHub. Similarly, Icosa Gallery emerges as a successor to Google Poly, powered by Icosa’s brilliant initiative.
Full story on Open Blocks: Read about Open Blocks on Reddit | Open Blocks debut on Upload VR
A Dose of XR Fun
There’s a cave simulator that humorously sparks a double take… Check it out
Call to Support
As usual, I’m reaching out to encourage donations—not for the blog but for humanitarian aid via the Red Cross in Ukraine. Massive thanks to all my Patreon supporters; your help is invaluable.
Please support here: Donate to the Red Cross in Ukraine
(Header image by Meta)
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