I’m back in China for a bit, and I finally caught a street performance celebrating the new year with the iconic dragon and tiger characters! It’s been a blast, but I’ve been indulging in so much food that I feel like I’ll burst soon—what a way to go. As we usher in the Year of the Snake, I extend my warmest wishes to all of you and share some of the biggest XR news from the past week! (UPDATE: This newsletter is coming out a couple of days late because I fell quite ill after starting it—not due to the food! Just got back on my feet today, and re-reading my cheerful intro gave me a chuckle. Apologies for the delay… hope you’re still with me!)
Top news of the week
Meta had a great Q4 2024
Meta’s Q4 2024 financials are in, and they’re quite impressive, though they give us plenty to ponder. Reality Labs hit a new record, raking in $1.08 billion, which marks the division’s highest quarterly revenue yet. Typically, Meta experiences a holiday boost thanks to the popularity of Quests as gifts. Signs pointed towards a successful quarter, such as the Meta Quest app topping the iOS charts, over a million players enjoying Batman Arkham Shadow, and the Quest being Amazon’s bestseller in 2024. Despite the mixed state of MR/VR, where growth has been sluggish and yearns for breakthrough innovations, the figures surprised even seasoned analysts for Meta Reality Labs.
The game-changer? Ray-Ban Meta glasses, of which over a million units sold, delivering more than $300M in revenue. While the exact split between Meta and EssilorLuxottica remains unclear, even at a modest 30% cut for Meta, the glasses have generated over $100M annually—adding $25M to each quarter. Without the Ray-Ban boost, Quest-related revenues might have been stagnant or merely matched last year’s performance.
To me, this confirms a couple of things: MR/VR is neither dead nor dying but is in a state of waiting for the next big leap, while smartglasses hold considerable promise, though perhaps hyped beyond reason. Zuckerberg is particularly optimistic about the potential for Ray-Ban Meta, hoping the next version might sell between 2 to 5 million units.
Zuckerberg also expressed enthusiasm about Horizon Worlds, pointing out its growing engagement and visual enhancements anticipated this year. It’s clear the Horizon OS was designed to funnel users to Horizon Worlds, a point of satisfaction for Meta’s leadership but a frustration for content developers whose businesses suffer under the platform.
Despite robust revenues, Meta’s expenses were staggering, hitting $6.05 billion—the highest in a single quarter. Substantial R&D investment and selling their devices at a loss contribute significantly to these costs, painting a picture of a business model that prioritizes long-term gains in a challenging market landscape. As Road To VR notes, “Since Q4 2020, Meta has invested $69 billion in Reality Labs, yet only generated $9.19 billion in revenue.” And if you’re wondering about future expenses, brace yourself: Meta has no plans to tighten its purse strings, expecting financial rewards only by the 2030s.
Other relevant news
Apple is still finding its best strategy for glasses
As per Marc Gurman’s reliable reports, Apple is committed to AR glasses, though it hasn’t yet found the ideal path forward. Gurman reveals Apple recently halted its tethered AR glasses project, which was meant to connect to iPhones for display purposes, due to excessive battery drain. Plans then pivoted to connect them to a Mac, but unfavorable early feedback led to their cancellation altogether.
However, Apple’s pursuit of AR glasses continues. A team at a Santa Clara "secretive facility" is developing microLED displays for potential AR glasses, a display tech heralded as a game-changer for XR. Apple envisions a launch no sooner than 2028, possibly even later. Inside Apple’s Vision Products Group (VPG), these frequent cancellations have muddled focus and dampened morale, illustrating the frustrations inherent in cutting-edge tech development—but persistence usually pays off.
Apple Vision Pro is one year old!
Recently, my social feed brimmed with Apple fans celebrating the Vision Pro’s first anniversary. It was quite a festive moment, so let me jump on the bandwagon and say: Happy Birthday Apple Vision Pro! Thank you for reigniting competition in the XR arena, compelling rivals to accelerate their development plans!
News worth a mention
VRChat introduces age verification
VRChat has implemented age verification for VRC+ subscribers. Users can verify their age via Persona by providing ID or facial photos. Verification is optional but grants access to age-restricted worlds and displays an adult badge. As the first major social VR platform to do this, it’s intriguing to see the outcome. Users have long sought separation from young children disrupting their experience, and here’s a solution, albeit requiring data sharing with an external party. Will users prioritize this over privacy concerns, and will creative developers limit content to verified adults? Time will provide the answers…
In my experience at VRROOM, I once pitched a similar idea. Some colleagues opposed it, fearing users wouldn’t share personal info for VR age verification. I’m keen to see if their skepticism holds true here.
XReal One or Apple Vision Pro?
Typically, I don’t compare vastly different devices, but Scott Stein’s review of XReal One glasses sparked some thoughts. The XReal One offers an excellent experience for watching movies on a virtual display at a much lower cost than the Apple Vision Pro’s $3500 price tag. While Vision Pro offers broader FOV, richer colors, and diverse functionalities, wouldn’t it make sense to opt for a cheaper, specialized option for media consumption? Just a thought to ponder…
Viture releases Pro XR glasses
Viture has launched its Pro XR glasses, featuring 1920×1080 micro OLED displays, 46° FOV, 49 PPD, and a 120Hz refresh rate. Priced at $459, you can snag a $50 discount if you order now.
The Logitech Pen is a good tracker for the Meta Quest
Although the Meta Quest lacks a dedicated tracking peripheral like Vive Tracker, a new option emerges: the Logitech MX Ink pen. I’ve seen two videos showcasing its potential for object tracking on Meta Quest, and it’s fascinating. The Quest can track the pen in addition to its controllers, enabling unique mixed reality experiences. I look forward to seeing what creative minds come up with!
Haptikos aims to be a new contender in the XR haptics scene
Emerging from stealth, Haptikos presents its prototype hand exoskeleton, part of the Haptik OS ecosystem, delivering both finger-tracking and rich haptic feedback. Expected to retail at $1000 when finalized in 2026, it’s priced competitively against many XR glove solutions. I’ve experienced an early version and can vouch for its promising performance.
Meta aims at firing all leakers
Meta is cracking down on leaks, vowing to terminate anyone responsible. Despite Zuckerberg’s frustration with transparency leading to leaks, ironically, this exact statement was leaked. Oh, the irony!
Integrating Quest passthrough and ChatGPT
An individual excelling in Quest passthrough integration is set to release a new tool combining Meta Quest 3’s camera features with OpenAI GPT-4o. The fusion of AI and passthrough could be immensely transformative, and I’m eager to witness its capabilities unfold!
New bad news for VR
Unfortunately, tough times continue for the VR ecosystem, with three notable setbacks this week. Orbus VR, the pioneering VR MMO from 2017, is shutting down. Fast Travel Games lays off 30 staff due to underwhelming 2024 sales. Lastly, Vertigo Games sells its arcade platform Springboard VR to Synthesis VR as part of a strategic realignment.
Some news about content
- COLD VR launches February 11
- Aces of Thunder, an aerial VR combat game, arrives on PSVR 2 and PC VR in 2025
- Demeo X DUNGEONS & DRAGONS: BATTLEMARKED, a standalone, D&D adaptation launches, separate from Demeo
- Cave Crave, a Climb-inspired spelunking simulator, is now on Horizon Store for $13
- Trailblazer: The Untold Story of Mrs. Benz features Daisy Ridley, detailing automotive pioneer Bertha Benz’s story on Quest in March
- Beyond Blue: After the Storm, a VR follow-up to 2020’s Beyond Blue, now on Meta Store for $15
- Darknet: Remastered arrives on Quest, available for $9.99 on the Horizon Store
- Craftrium offers a free spatial aquarium creation app for Apple Vision Pro
- Synth Riders celebrates Super Bowl LIX with a Kendrick Lamar Experience, temporarily exclusive to Apple Vision Pro
- Farming Simulator VR, designed specifically for VR, releases on Horizon Store February 28
- Owlchemy Labs lowers prices on its games; Vacation Simulator and Cosmonious High are $19.99 on Meta, Steam, Pico, and Apple
- Ahoy! on Apple Vision Pro is a highly emotional storytelling experience
- Upload VR shares its regular XR News Round-Up highlighting minor XR updates
Some reviews about content
- Path of Fury: Episode I — Tetsuo’s Tower offers an interesting rail shooter that doubles as a vigorous workout wrapped in a nostalgic 80s action game aesthetic, as noted by a Road To VR preview
- StageTime VR promises a bright future for multiplayer karaoke, showcasing impressive elements like spatial audio
Other news
- The VR Games Showcase is back in March, boasting its “biggest line-up” yet of XR titles
- Mindshow reveals a virtual animation tool tailored for enterprises
- XR4Europe releases multiple reports delving into the XR sector across European nations
- XR Bootcamp rolls out a comprehensive comparison of all smartglasses currently available, including a detailed spreadsheet and article
- Quest’s v74 update seems to worsen the UI experience, rather than improving it
- Samsung trademarks the term “Beyond,” though its use for a headset name seems unlikely
- Astronauts share how HTC headsets are helping mitigate feelings of isolation in space
News from partners (and friends)
Google Blocks returns as Open Blocks!
Icosa Foundation, the brains behind Open Brush (a successor to the discontinued Tilt Brush), is reviving Google’s low-poly creation tool as Open Blocks. Built on Blocks’ code, Open Blocks is free, open source, and available on both the Horizon Store and GitHub. Additionally, Icosa is working on Icosa Gallery, aiming to capture the community spirit of the erstwhile Google Poly. Hats off to the innovative minds at Icosa!
Some XR fun
An amusing detail about a cave simulator—it could be easily misinterpreted. Check it out for laughs!
Donate for good
As we wrap up, I encourage you to support the Red Cross in addressing humanitarian needs in Ukraine. In light of current circumstances, your contributions are invaluable. Gracious thanks to my Patreon patrons:
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Here’s the link if you’d like to contribute to the Red Cross—thank you for extending your kindness.
Support The Red Cross in Ukraine
(Header image by Meta)
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