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I’ve made a quick visit back to China and finally caught a stunning street performance featuring the iconic dragon and tiger, celebrating the New Year in style! It’s been a blast, though my culinary indulgences might just make me pop—what a way to go out! As we usher in the Year of the Snake with vibrant festivities, I’m here to bring you the latest highlights from the world of XR over the past week. (Quick update: Apologies for the delay in publishing this newsletter. I was under the weather for a couple of days after drafting it—nope, it wasn’t the food! I’m back on my feet and bringing you all the updates. Thanks for your patience and I hope you’re still with me!)
Top News of the Week
Meta’s Impressive Q4 2024
Meta has revealed some stellar financial outcomes for the last quarter of 2024, but there are a few twists to discuss as well. Reality Labs hit its highest-ever quarterly revenue at $1.08 billion. Traditionally, Meta sees a spike in sales in Q4, thanks to Quests being the go-to holiday present. All signs pointed to a fantastic quarter, such as the Meta Quest app topping the iOS charts, a million gamers diving into Batman Arkham Shadow, and Quest becoming Amazon’s bestseller of 2024. Still, given the current MR/VR climate, it was unexpected for Reality Labs to outperform expectations so dramatically.
What many overlooked was the contribution of Ray-Ban Meta. Mark Zuckerberg disclosed that over a million Ray-Ban Meta glasses were sold in 2024, raking in more than $300 million. While the exact revenue split between Meta and EssilorLuxottica is unclear, even if Meta grabbed just 30% of the total, it still amounts to over $100 million annually, which translates to over $25 million each quarter. After peeling away these revenues, the remaining income from Quest and related sales is either stagnant or slightly declining compared to last year.
This sheds light on two emerging trends. Firstly, the MR/VR sector is very much alive, albeit slowly evolving while awaiting a breakthrough innovation. Secondly, the smartglasses realm is burgeoning with immense potential, although there’s arguably too much excitement around it at the moment. Zuckerberg is super optimistic about Ray-Ban Meta, projecting sales numbers between 2 to 5 million for the next versions.
Zuckerberg is also confident in Horizon Worlds, expecting not only growth in users but a visual upgrade that enhances the overall experience. However, while Meta’s internal numbers are up, this zeal is harming developers on the Horizon Store as the focus narrows to in-house content.
Despite these upbeat numbers, Meta’s expenditures hit a whopping $6.05 billion for the quarter, a new high. Significant portions fund R&D for pioneering consumer AR glasses, while substantial amounts are due to hardware being sold at a loss. Historically, Reality Labs’ finances show that the more Meta sells, the deeper its losses grow, posing a concerning business model.
Road to VR highlights that "Meta has poured out an astounding $69 billion into Reality Labs since Q4 2020 but has only generated $9.19 billion in return within that duration.” And if you’re wondering, expenses aren’t expected to dwindle. Meta has declared plans to continue heavy investment, with returns anticipated only in the 2030s.
To explore further: Meta’s Q4 2024 Financials, Pre-released Memo on Meta Reality Labs Revenues, Record Revenues and Losses, 1 Million Batman Arkham Shadow Players, Ray-Ban Meta’s Sales Figures, Upcoming Visuals in Horizon Worlds.
Other Relevant News
Apple Still Crafting its AR Glasses Strategy
Marc Gurman, as always, keeps insider news flowing, revealing that Apple remains devoted to AR glasses development, albeit without a clear path forward. Gurman’s latest report indicates that Apple scrapped plans for tethered glasses, initially set to connect with the iPhone to project a large screen. The power drain on the iPhone led to an attempted switch to Macs, yet unfavorable feedback resulted in total cancellation.
Still, Apple isn’t backing away from the AR glasses race. A dedicated Santa Clara team focuses on microLED display development, a promising technology for the future of XR hardware. The debut of Apple’s AR glasses is optimistically set for 2028, perhaps even later.
Amid these pivoting plans, Apple’s Vision Products Group feels a lack of direction, raising concerns over team morale—an all-too-common issue when working on frontier tech, from personal experience.
For more details: Apple’s MicroLED Development, Cancellation of AR Glasses Plans.
Celebrating One Year of Apple Vision Pro!
Scrolling through my X timeline recently, I saw plenty of Apple fans celebrating Apple Vision Pro’s first birthday. It’s heartening to see the enthusiasm for a device that’s injected fresh competition into the XR domain, pulling other companies into the race to elevate their XR offerings. Cheers to the Vision Pro!
Check out more: Birthday Celebrations, Apple Vision Pro Anniversary.
News Worth a Mention
VRChat Rolls Out Age Verification
VRChat has introduced an age verification feature for VRC+ subscribers, made possible through Persona, an external firm. This process involves sharing official documents or a facial photo but remains optional. Verified users can access age-restricted environments and wear badges signifying adult status.
As the first big social VR platform to implement this, it will be intriguing to see the community’s response. Many users have longed for a child-free experience, but will they trade some personal info for it? Moreover, how will world builders handle these new verified adult-only options?
Quick story: Back when I was with VRROOM, a similar solution was on the table, but many on the team raised privacy concerns. Their skepticism makes me even more curious about VRChat’s results.
Learn More About VRChat’s New Feature
XReal One vs. Apple Vision Pro
I’ll admit, I’ve hesitated to compare different device categories, but a review by Scott Stein on the XReal One glasses piqued my curiosity. The XReal One is lauded for movie-viewing with a virtual screen, competing with Apple’s Vision Pro, which markets itself on a similar feature. For just a fraction of the Vision Pro cost, the XReal One offers a lighter, dedicated experience. Yes, the Vision Pro provides broader functionality like a wider field of view and bolder colors, but it does raise a provocative question about value.
Viture Debuts Pro XR Glasses
Viture has just released its Pro XR glasses. Boasting 1920×1080 micro OLED displays, a 46° field of view, 49 PPD, and a 120Hz refresh rate, these glasses are priced at $459—with a $50 early bird discount.
For more information: Viture Pro XR Glasses.
Logitech Pen: A New Tool for Meta Quest
No doubt that the Meta Quest lacks a dedicated object tracker like the Vive Tracker, leading developers to improvise with a controller. However, the Logitech MX Ink Pen has emerged as a novel solution. From what I’ve seen in two engaging demonstration videos, the pen effectively tracks objects, allowing the Quest to simultaneously monitor both controllers and the pen. I’m excited to see the inventive uses the community comes up with!
(Thanks to Rob Cole and A.K. for sharing the videos!)
Explore More on Logitech Pen as a Tracker
Haptikos: A Fresh XR Haptics Competitor
Out of stealth mode, Haptikos—a startup from Sunnyvale and Athens—has revealed a prototype of its hand exoskeleton. Part of the Haptik OS suite, this hardware-software combo promises finger tracking and haptic feedback to mimic textures. Currently, prototypes are priced at $2,500, with a target of $1,000 when officially launched in 2026, outpricing most current XR gloves.
I can vouch for the credibility of their team—I had the chance to try an early demo at AWE, and it showed great promise.
Meta’s Crackdown on Leakers
In a firm stance against internal leaks, Meta has vowed to terminate any employees caught divulging company secrets. Mark Zuckerberg, frustrated by recurrent leaks, mentioned scaling back on transparency as a result. Ironically, these remarks were themselves leaked…
Pairing Quest Passthrough with ChatGPT
The creator known for refining Quest passthrough access is now integrating it with OpenAI’s GPT-4o and the Meta Quest 3’s camera. The potential of merging passthrough and AI excites me—can’t wait for its arrival!
More Troubles for VR
The VR sector faces more setbacks this week. The pioneering MMO, Orbus VR, is closing its doors. Fast Travel Games, a leading studio, is laying off 30 staff due to lackluster sales. Meanwhile, Vertigo Games is offloading its Springboard VR platform to streamline operations.
Stay informed: Orbus VR Closure, Fast Travel Games Layoffs, Springboard VR Ownership Change.
Content Tidbits
- COLD VR’s next release is on February 11.
- Aerial VR combat game Aces of Thunder targets PSVR 2 and PC VR by 2025.
- Demeo morphs into DEMEO X DUNGEONS & DRAGONS: BATTLEMARKED.
- Cave Crave, a spelunking simulator, can be pre-ordered for $13 on the Horizon Store.
- Daisy Ridley stars in Trailblazer, a new Quest experience spotlighting Bertha Benz, due in March.
- Beyond Blue: After the Storm transports you to the ocean depths in VR on the Meta Store for $15.
- Darknet: Remastered is now live on Quest, priced at $9.99.
- Craftrium, a spatial aquarium project, is available for free with Apple Vision Pro.
- Synth Riders celebrates the Super Bowl with a Kendrick Lamar Experience, an Apple Vision Pro exclusive.
- Farming Simulator VR launches February 28 on the Horizon Store.
- Owlchemy Labs permanently discounts Vacation Simulator and Cosmonious High to $19.99.
- Ahoy! delivers a touching Apple Vision Pro narrative.
- Check out Upload VR’s latest XR News Round-Up for minor XR updates.
Find out more: COLD VR, Aces Of Thunder, Demeo Announcement, Cave Crave, Daisy Ridley News, Beyond Blue VR Release, Darknet: Remastered, Craftrium Details, Synth Riders Event, Farming Simulator VR Release, Owlchemy Labs Discounts, Ahoy Storytelling, Upload VR Round-Up.
Content Review Highlights
- Path of Fury: Episode I—Tetsuo’s Tower promises both workout thrills and an ‘80s action vibe, according to Road To VR.
- StageTime VR unveils an intriguing multiplayer karaoke premise, aided by spatial audio.
For a deeper look: Path of Fury Review, StageTime VR Preview.
Additional News
- The VR Games Showcase is back in March with its largest XR lineup yet. Learn more.
- Introducing Mindshow’s enterprise virtual animation tool. Learn more.
- XR4Europe has released several reports on the XR landscape throughout Europe. Learn more.
- XR Bootcamp’s smartglasses comparison is worth a look. Spreadsheet, Article.
- It seems Quest’s v74 update worsened its UI. Learn more.
- “Beyond” has been trademarked by Samsung, though it’s unlikely they’ll use an existing headset name. Learn more.
- Discover how HTC headsets are comforting astronauts in space. Learn more.
News From Partners and Friends
Google Blocks has been resurrected as Open Blocks! Thanks to the Icosa Foundation, who also revived the Tilt Brush project, Google Blocks now lives on as Open Blocks. The updated tool is built on the original codebase, originally released by Google, ensuring it stays free and open-source forever. After its debut on Steam, Open Blocks is now available on the Horizon Store and GitHub. Additionally, Icosa is working on the Icosa Gallery, a spiritual successor to Google Poly. Kudos to the brilliant minds at Icosa!
Check out this Reddit Post More on Open Blocks – Upload VR.
Some XR Fun
What’s meant to be a cave simulator could easily be mistaken for something else… Take a peek at this Funny Link.
Donate for Good
Just as last week, I’m not seeking donations for the blog. Instead, I’m urging you to support those affected by war. Consider donating to the Red Cross to assist Ukraine in this ongoing crisis. The link is right here below.
Before I sign off, a huge 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, and Paul Shay, Matias Nassi.
Here’s your link: Support the Red Cross in Ukraine.
(Header image by Meta)
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