I’ve just returned to China and had the delightful chance to catch a traditional New Year street show featuring the iconic dragon and tiger! I’m absolutely enjoying my stay here, although I might be overindulging in the local cuisine; I feel like I might burst soon. Not a bad way to go, honestly. As we usher in the Year of the Snake, I want to extend my warmest wishes to everyone. Before moving on, let’s dive into last week’s most exciting XR news! (UPDATE: This newsletter is coming out two days late because I ended up pretty sick shortly after drafting half of it. It wasn’t the food, I promise! I just managed to get back on my feet today, finish writing, and seeing my optimistic intro made me chuckle. I apologize for the delay, and I hope you’ll still appreciate my updates.)
This Week’s Top Stories
Meta’s Stellar Q4 2024
Meta released its financial results for the final quarter of 2024, and they’re impressive, albeit with some nuances to consider. The standout point is Reality Labs’s record-breaking $1.08 billion revenue in this quarter, marking a milestone for the division. Historically, Q4 always sees a spike in Meta’s profits, thanks to Quests being a sought-after holiday present. Signs were pointing to this being another successful quarter: the Meta Quest companion app was a top download on the iOS store, 1 million gamers were enjoying Batman Arkham Shadow, and Quest topped Amazon’s 2024 console sales. Even so, given the somewhat stagnant state of MR/VR, this triumphant quarter was somewhat unexpected for Meta Reality Labs. Yet, many overlooked the Ray-Ban Meta factor. In 2024, Meta reportedly sold over a million Ray-Ban Meta glasses, pulling in more than $300 million. The revenue split between Meta and EssilorLuxottica remains undisclosed, but assuming Meta earns just 30%, it would contribute over $100M for the year, roughly $25M per quarter. Take this from the $1.08B, and you see Quest-related revenue is on par or less than last year’s. This underscores two trends: MR/VR is hanging in there, waiting for a leap in innovation to spark growth, and the potential in smartglasses is starting to gain traction—though possibly overhyped. Zuckerberg is optimistic about the Ray-Ban Meta, foreseeing future sales between 2 to 5 million units, a promising prospect. He’s also confident about Horizon Worlds, noting growing user interest and expecting enhanced visuals this year. While this delights Meta top brass, it’s less so for developers on the Horizon Store. A final takeaway from these numbers—despite Meta’s robust revenues, their costs are staggering, hitting $6.05 billion, the largest ever for a quarter. This stems partly from R&D to dominate the AR consumer market and undercutting device prices. Historically, the financials of Meta Reality Labs show that increased sales equate to bigger losses—a worrisome business model. As Road To VR highlights, “Meta’s spent a colossal $69 billion on Reality Lab since Q4 2020 but only generated $9.19 billion revenue in the same time.” Spending is expected to surge with returns predicted only in the 2030s.
For further reading: Q4 Financials, Leaked Memo, Revenues & Losses, Batman Arkham Shadow, Ray-Ban Meta Sales, Stunning Horizon Worlds.
Other Key Highlights
Apple’s Quest for AR Glasses Strategy
Renowned tech reporter Marc Gurman shares that Apple continues its pursuit of designing AR glasses but hasn’t quite settled on an effective strategy. Initially planned to pair with an iPhone, these glasses were supposed to display large screens but were nixed due to battery drain issues and lackluster reviews from early Mac connections. Yet, Apple remains committed, working at a secretive location in Santa Clara on microLED displays poised for future AR glasses. Expectations for an Apple AR glasses launch are no sooner than 2028 or beyond. Inside Apple’s Vision Products Group, the frequent shifts and cancellations have reportedly hampered focus and team morale—an occupational hazard in cutting-edge tech sectors.
More details: MicroLED Development, AR Glasses Update.
Happy First Anniversary, Apple Vision Pro!
Recently, my social feeds were buzzing with Apple aficionados celebrating Vision Pro’s first year. Jumping on this joyous occasion, here’s a cheer: Happy Birthday, Apple Vision Pro! Thanks to you, the XR market feels a bit more competitive, spurring other companies to hasten their XR ambitions.
More Birthday Wishes: Message 1, Message 2.
Noteworthy Mentions
Age Verification in VRChat
VRChat has rolled out age verification for its VRC+ subscribers. This involves optional verification either through official documents or a facial photo via a third-party named Persona. It’s not mandatory but enables access to age-restricted areas and a badge showcasing adult status. VRChat is pioneering this aspect in social VR, addressing complaints about younger users disrupting experiences. It’s intriguing to predict how many will embrace this feature, balancing privacy concerns against the promise of less disruptive encounters. It’s a dilemma that sparks curiosity as world creators may or may not limit access to verified adults.
Expectations and possibilities: Persona Integration.
XReal One vs. Apple Vision Pro?
While usually skeptical about comparing different devices, a review by Scott Stein on the XReal One glasses left me pondering. These glasses, ideal for virtual movie displays, stand out in reviews. Apple’s Vision Pro initially marketed a similar experience—having a large screen in view. Yet, XReal offers a lightweight, affordable option solely dedicated to such uses. Granted, Vision Pro comes with a broader FOV, vibrant colors, and more, but it raises the question: why not choose a specialized device at a fraction of the cost for this particular function?
More on the topic: Stein’s Review.
Viture’s Pro XR Glasses Launch
Viture has unveiled its new Pro XR glasses, featuring 1920×1080 micro OLED displays, 46° FOV, 49 PPD, and 120Hz, retailing at $459, with an early bird discount.
Discover more.
Logitech Pen: A New Tracker for Meta Quest
Absent an official Meta Quest tracker like the Vive Tracker, developers traditionally used a controller to track objects in XR. Enter the Logitech MX Ink pen, which can track in combination with Quest controllers. This week, I watched fascinating demos of it in action. I’m eager to see the innovations this tool inspires in the community.
Videos of interest: Weapon Controller, Educational Experiments.
Haptikos: A New XR Haptics Challenger
Emerging from stealth, Sunnyvale and Athens-based startup Haptikos unveiled a hand exoskeleton prototype, part of the Haptik OS ecosystem. It aims to provide finger tracking and haptic feedback simulating textures. Initially priced at $2500, a final version expected in 2026 should cost $1000, making it more accessible than current XR gloves. Having tried an early prototype privately, I found it quite promising.
Learn more.
Meta’s Crackdown on Leaks
Meta is getting serious about leaks, warning of terminations for those responsible. Frustrated by recurring leaks, Zuckerberg intends to be less transparent internally. Ironically, these remarks surfaced through yet another leak.
Detailed report.
Quest Passthrough Meets ChatGPT
A developer advancing Quest passthrough is preparing to combine Meta Quest 3’s camera with OpenAI GPT-4. This powerful integration between passthrough imaging and AI is something I’m eagerly anticipating.
Stay updated.
VR’s Ongoing Challenges
The VR sphere faces continued struggles, highlighted by three developments this week. Orbus VR, the first VR MMO, is shutting down. Fast Travel Games plans to lay off 30 employees due to flagging 2024 sales, while Vertigo Games is selling Springboard VR to Synthesis VR, streamlining its operations.
Read further: Orbus VR, Fast Travel Games.
Content Highlights
- COLD VR is releasing on February 11.
- Aerial VR combat game, Aces of Thunder, is bound for PSVR 2 and PC VR by 2025.
- Demeo’s adaptation Demeo X Dungeons & Dragons: Battlemarked is forthcoming—a standalone game, not DLC.
- Cave Crave, a spelunking simulator inspired by Climb, is available for preorder at $13.
- Daisy Ridley leads Trailblazer: The Untold Story of Mrs. Benz, detailing Bertha Benz’s pioneering story, hitting Quest in March.
- Beyond Blue: After the Storm, a VR sequel to the 2020 game, lets you explore ocean depths—available now on the Meta Store for $15.
- Darknet’s VR classic is now on Quest as Darknet: Remastered for $9.99 on the Horizon Store.
- Craftrium allows for free spatial aquarium creation on Apple Vision Pro.
- Synth Riders rolls out a Kendrick Lamar Experience exclusively for Apple Vision Pro during Super Bowl LIX.
- Farming Simulator VR offers a new farming experience launching February 28 on the Horizon Store.
- Owlchemy Labs sales are now permanent for Vacation Simulator and Cosmonious High at $19.99 across several platforms.
- Ahoy!, a compelling storytelling endeavor, debuts on Apple Vision Pro.
- Upload VR’s comprehensive XR News Round-Up includes numerous minor XR pieces.
More content insights: COLD VR, Aces of Thunder, Cave Crave, Trailblazer.
Reviews of Interest
- Path of Fury: Episode I — Tetsuo’s Tower appears promising—a rails-based game providing a decent workout within a retro action universe.
- StageTime VR is emerging as a notable multiplayer karaoke venture, enhanced by features like spatial audio, indicating a bright future.
Details: Path of Fury Review, StageTime VR Feedback.
Additional Updates
- March sees the return of the VR Games Showcase, promising its largest XR lineup to date.
- Mindshow reveals its enterprise-level animation tool.
- XR4Europe shares reports on the XR landscape across Europe.
- XR Bootcamp’s detailed smartglasses comparison sheds light on current offerings.
- Quest v74 update challenges UI standards once again.
- Samsung trademarks "Beyond," though unlikely to use a rival headset’s name.
- Astronauts share how HTC headsets ease solitude in space.
Learn more: XR Games, Mindshow.
Partner News
Google Blocks revives as Open Blocks through the Icosa Foundation, akin to their Open Brush project. Initially launched on Steam, Open Blocks extends to the Horizon Store, and now open source on GitHub, ensuring free accessibility indefinitely. Additionally, Icosa Foundation is crafting a successor to Google Poly, to be named the Icosa Gallery—these folks at Icosa are truly inspiring!
Details: Open Blocks on Reddit, Open Blocks Launch by Upload VR.
A Bit of XR Humor
A cave simulator is surprisingly enjoyable but might be misconstrued for something else entirely. Here’s a fun link to explore.
Support a Worthy Cause
This week’s closing note is not a plea for blog support, but an appeal to contribute to those affected by war. Please consider donating to the Red Cross to help address the humanitarian crisis in Ukraine. A heartfelt thank you to all my Patreon supporters:
Alex Gonzalez VR, DeoVR, GenVR, Eduardo Siman, Jonn Fredericks, Jean-Marc Duyckaerts, Reynaldo T Zabala, Richard Penny, Terry xR. Schussler, Ilias Kapouranis, Paolo Leoncini, Immersive.international, Nikk Mitchell and the great FXG team, Jake Rubin, Alexis Huille, Raghu Bathina, Chris Koomen, Cognitive3D, Wisear (Yacine Achiakh), Masterpiece X, Dimo Pepelyashev, Carol Dalrymple, Keith Bradner, Jennifer Granger, Jason Moore, Steve Biggs, Julio Cesar Bolivar, Jan Schroeder, Kai Curtis, Francesco Strada, Sikaar Keita, Ramin Assadollahi, Juan Sotelo, Andrew Sheldon, Chris Madsen, Horacio Torrendell, Andrew Deutsch, Fabien Benetou, Tatiana Kartashova, Marco “BeyondTheCastle” Arena, Eloi Gerard, Adam Boyd, Jeremy Dalton, Joel Ward, Alex P, Lynn Eades, Donald P, Casie Lane, Catherine Henry, Qcreator, Ristband (Anne McKinnon & Roman Rappak), Stephen Robnett, KaihatsuJai, Christopher Boyd, Anonymous Supporter, Giuseppe Pippi, Sb, Boule Petanque, Pieter Siekerman, Enrico Poli, Vooiage Technologies, Caroline, Liam James O’Malley, Hillary Charnas, Wil Stevens, Francesco Salizzoni, Alan Smithson, Steve R, Brentwahn, Michael Gaebler, Tiago Silva, Matt Cool, Mark G, Simplex, Gregory F Gorsuch, Paul Shay, Matias Nassi.
Here’s the donation link: Support The Red Cross in Ukraine.
(^Header image courtesy of Meta)
