I’m back in China for a bit, and I finally caught an incredible street performance featuring the iconic dragon and tiger figures to ring in the new year. The experience has been a blast, although I’ve been indulging in so much delicious food that I’m joking it’s the best way to go. With the Year of the Snake finally here, I wish you all the best! Now, let’s dive into some of the top XR news from the past week. (UPDATE: This newsletter is a couple of days late because I came down with something after writing half of it. I wasn’t bedridden due to the food, thankfully. Today’s the first day I’ve had a chance to sit in front of a computer again, and seeing the cheerful start I’d written put a smile on my face. My apologies for the delay… I hope we’re still on good terms!)
Top News of the Week
Meta had a great Q4 2024
Meta recently shared its financial results for the last quarter of 2024, and they’re looking impressive, though there are a few things to take note of. Reality Labs hit a new high with $1.08 billion in revenue for the quarter, marking its best performance yet. It’s typical for Meta to see a spike in Q4 as Quests become popular holiday gifts, and this year was no exception. Given that the Meta Quest companion app topped the iOS charts, a million players delved into Batman Arkham Shadow, and the Quest topped Amazon’s 2024 console sales, it seemed likely that this Q4 would be solid. However, the MR/VR scene isn’t exactly thriving, so this record-breaking quarter was surprising.
A key factor we overlooked was Ray-Ban Meta’s contribution. Zuckerberg revealed that over a million Ray-Ban Meta glasses were sold in 2024, equating to revenues surpassing $300M. While the split with EssilorLuxottica remains unclear, even if Meta’s cut was just 30%, it still translates to over $100M for the year, or $25M per quarter. This suggests that, without considering Ray-Ban’s figures, Quest-related revenues are about even or possibly lower than last year.
From this, I see two trends: The MR/VR market isn’t dying; it’s actually growing slowly but waiting for fresh innovations to give it a boost. Meanwhile, the smart glasses market shows promise, although it might be getting more hype than it deserves. Zuck is quite fervent about Ray-Ban Meta too, anticipating that the next version might sell between 2 and 5 million units.
While the increase in Horizon Worlds’ numbers and visual enhancements excite Meta’s executives, developers on the Horizon Store are struggling. Despite these revenue highs, Meta’s costs stood at a massive $6.05 billion for the quarter. A significant portion of this goes into R&D, competing fiercely to launch the first consumer AR glasses. Meta’s practice of selling devices at a loss also contributes. Historically, Meta Reality Labs loses more money as sales rise—hardly a sustainable business model. As Road To VR points out, Meta has invested $69 billion in Reality Labs since Q4 2020 but earned only $9.19 billion. Expenses are expected to rise, with profits forecasted for the 2030s.
For more details: Meta Q4 2024 financials, Leaked memo on Meta’s revenues, Meta’s revenue records, Batman Arkham Shadow’s player milestone, Ray-Ban Meta sales, Horizon Worlds updates.
Other Relevant News
Apple is still finding its best strategy for glasses
Marc Gurman reports that Apple remains keen on AR glasses, but is yet to settle on an optimal approach. Initially, Apple considered tethered AR glasses that would connect to an iPhone for a larger display, but battery life issues switched the focus to a Mac. Negative feedback from testing led to the project’s cancellation.
However, Apple hasn’t given up. It has a team in Santa Clara working on microLED displays intended for AR devices, promising substantial XR impact. Apple envisions releasing AR glasses by 2028, but possibly later. The constant shifts have reportedly left Apple’s Vision Products Group feeling a loss of focus and direction, impacting morale. Developing cutting-edge technology can be tough and often discouraging, but eventually, the hard work pays off.
For more information: Apple’s MicroLED efforts, Apple’s AR glasses cancellation.
Apple Vision Pro is one year old!
My social media was recently filled with celebrations for the Apple Vision Pro’s first anniversary. The excitement got me in the mood to join and say a big Happy Birthday to the Apple Vision Pro! It has revitalized competition in the XR realm, prompting other companies to ramp up their XR efforts.
More info: Vision Pro Birthday Message 1, Message 2, Message 3, Message 4.
News Worth a Mention
VRChat introduces age verification
VRChat has introduced age verification for its VRC+ subscribers. Users can verify their age by providing official documents or a facial photo through Persona. While not mandatory, those verified can access age-restricted areas and display an adult badge. This move marks VRChat as the first major social VR platform to offer such a feature. It will be interesting to see if users prioritize privacy over experience, and how many world builders will limit access to verified adults only. At VRROOM, a similar proposal faced opposition over data-sharing concerns, so I’m curious about how this pans out.
More info: VRChat Age Verification.
XReal One or Apple Vision Pro?
Comparing different devices isn’t usually my cup of tea, but Scott Stein’s review of the XReal One glasses raises a good point. The XReal One excels as virtual movie glasses, highlighted by reviews from Stein and Tyriel Wood. Meanwhile, Apple’s Vision Pro markets itself as a massive display alternative. But if that’s your goal, why not save and buy a slimmer, specialized device like XReal One? Sure, Vision Pro boasts a broader FOV, better colors, and multiple uses…but it’s food for thought.
More info: Scott Stein’s review on XReal One.
Viture releases Pro XR glasses
Viture’s new Pro XR glasses come equipped with 1920×1080 micro OLED displays, a 46° FOV, 49 PPD, and 120Hz refresh. They’re priced at $459, with an early bird discount of $50.
More info: Viture Pro XR Glasses.
The Logitech Pen is a good tracker for the Meta Quest
The Vive Tracker lacks a Meta Quest counterpart, leading developers to repurpose Quest controllers for object tracking. A new option is the Logitech MX Ink pen. I’ve seen a couple of videos showcasing the pen’s potential for object tracking with the Meta Quest and found them fascinating. The Quest can handle both the pen and controllers simultaneously, opening up creative possibilities. I’m eager to see what the community will come up with!
Thanks to Rob Cole and A.K. for the video links.
More info: Weapon controller with Logitech Pen, Educational experiments with Logitech Pen.
Haptikos aims to be a new contender in the XR haptics scene
Emerging from stealth, Sunnyvale and Athens-based startup Haptikos has unveiled a prototype hand exoskeleton. Part of its Haptik OS ecosystem, this includes integrated hardware and software for finger-tracking and haptic feedback, to simulate tactile sensations. The current glove prototype costs $2500, but it’s expected to drop to $1000 by its 2026 launch—below many competing XR gloves. Having tried an early version at AWE, I found them promising.
More info: Haptikos XR haptics.
Meta aims at firing all leakers
Meta is cracking down on leaks, pledging to terminate any responsible staff. Zuckerberg expressed frustration at leaks following transparency, ironically during a meeting that was itself leaked. Oh, the irony.
More info: Meta’s stance on leakers.
Integrating Quest passthrough and ChatGPT
A developer is set to combine Meta Quest 3’s passthrough camera with OpenAI GPT-4o. The union of AI and passthrough offers exciting possibilities, and I cannot wait to see this in action.
More info: Quest passthrough and ChatGPT integration.
New bad news for VR
The VR sector continues to face challenges, with three recent reports underscoring the current situation. The pioneering 2017 VR MMO, Orbus VR, is closing. Fast Travel Games is laying off 30 employees amid weaker-than-expected 2024 sales, and Vertigo Games is transferring Springboard VR to Synthesis VR to streamline operations.
More info: Orbus VR closure, Fast Travel Games layoffs, Springboard VR sale.
Some news about content
- COLD VR now launches on February 11.
- Aerial VR combat game "Aces of Thunder" heads to PSVR 2 and PC VR in 2025.
- "Demeo" collaboration creates DEMEO X DUNGEONS & DRAGONS: BATTLEMARKED, a standalone game.
- "Cave Crave", a climbing-inspired spelunking simulator, promises an immersive experience for $13 on the Horizon Store.
- Daisy Ridley stars in Trailblazer: The Untold Story of Mrs. Benz, a Quest-exclusive arriving in March.
- Beyond Blue: After the Storm invites VR ocean exploration, now available for $15.
- Darknet: Remastered brings a VR classic to Quest for $9.99.
- Craftrium offers a free spatial aquarium for Apple Vision Pro.
- Synth Riders plans a Kendrick Lamar Super Bowl LIX experience as an Apple Vision Pro exclusive.
- Farming Simulator VR, an original VR venture releases on the Horizon Store, February 28.
- Owlchemy Labs slashes prices: Vacation Simulator and Cosmonious High now $19.99 across platforms.
- "Ahoy!" brings emotional storytelling to the Apple Vision Pro.
- Upload VR‘s latest XR News Round-Up offers numerous XR snippets.
More info: COLD VR, Aces Of Thunder, Demeo, Cave Crave, Trailblazer, Beyond Blue, Darknet, Craftrium, Synth Riders, Farming Simulator VR, Owlchemy Labs, Ahoy!, XR News Round-Up.
Some reviews about content
- Path of Fury: Episode I – Tetsuo’s Tower promises retro action thrills with an 80s vibe according to Road To VR’s preview. A rail shooter that also offers a satisfying workout.
- StageTime VR is an emerging multiplayer karaoke platform. Though still early days, its emphasis on spatial audio bodes well for its future.
More info: Path of Fury Review, StageTime VR Preview.
Other News
- The VR Games Showcase is back this March, with the “biggest line-up yet” from XR Games.
- Mindshow reveals an enterprise-level virtual animation tool for businesses.
- XR4Europe unveils various reports on the XR landscape within Europe.
- XR Bootcamp presents a detailed comparison of smart glasses in today’s market. See the comparison spreadsheet and article.
- Quest v74 seems to miss the mark, complicating the UI further.
- Samsung trademarks “Beyond,” but using it seems unlikely as it already identifies another headset.
- Astronaut accounts highlight how the HTC headset assists them in feeling less isolated in space.
Learn more: VR Games Showcase, Mindshow news, XR4Europe reports, XR Bootcamp comparison, Quest v74 issues, Samsung trademark, HTC headset in space.
News from Partners (and Friends)
Google Blocks is resurrected as Open Blocks!
The Icosa Foundation, also behind TiltBrush’s revival as Open Brush, has now relaunched Google Blocks under the new name, Open Blocks. Built on Google’s original codebase, Open Blocks is available on the Horizon Store, and open source on GitHub, free for all. Icosa’s team is also working on Icosa Gallery, a successor to Google Poly’s platform for sharing and downloading 3D creations. Kudos to Icosa’s impressive strides!
Learn more: Open Blocks announcement on Reddit, Launch details on Upload VR.
Some XR Fun
Though marketed as a cave simulator, it might conjure different interpretations… Check out this funny link.
Donate for Good
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Shout-out to my Patreon supporters—you guys are incredible, and I appreciate your unwavering backing:
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(Header image by Meta)
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