In 2021, Varjo ventured into the consumer VR world with the launch of their Aero headset. However, they’re now pivoting back toward their core strength: high-end enterprise mixed reality (MR) headsets. The company has decided to refocus its efforts on training simulators and deeper integrations tailored specifically for enterprise clients—a shift that makes a successor to the Aero headset quite unlikely.
Varjo’s chief product officer, Patrick Wyatt, recently shared insights into this new direction during an interview with Road to VR. It turns out that military and aeronautical training sims are increasingly proving to be a fruitful arena for Varjo. Wyatt highlighted that the company is not just interested in selling headsets. Instead, they are emphasizing comprehensive solutions that offer concrete results, and they’re adopting a more collaborative approach with clients.
A stellar example of this is their partnership with Leonardo, a prominent helicopter manufacturer. They’ve collaborated to develop the Virtual Extended Reality (VxR) helicopter pilot training system, which prominently features Varjo headsets. The fine detail and superb visual fidelity that Varjo’s headsets provide were instrumental in the system securing the FAA FTD Level 7 Certification—the highest accolade for flight simulators. Varjo proudly states this is the first virtual reality-based training system to earn such an honor.
Moving beyond merely selling their headsets, Varjo is expanding its “solutions engineering” capabilities. This means teaming up directly with customers to brainstorm and implement tailored solutions. Such efforts are bolstered by their development of headset editions designed for specific needs. For instance, the XR-4’s ‘Focal Edition’ includes autofocus on the passthrough cameras, a real boon for interactions involving close-up objects like flight controls. Additionally, there’s the ‘Secure Edition,’ crafted specifically for classified environments.
While these specialized XR-4 variants come with a significant price tag—the Focal Edition at $10,000 and the Secure Edition at $14,000—they underscore Varjo’s commitment to specialization. Wyatt assures that the XR-4 series will be supported through 2030, offering businesses a reliable long-term solution.
Reflecting on Varjo’s broader strategy, it’s clear they’re stepping away from appealing to high-end consumer markets. The Aero headset, launched two years ago, was their initial—and probably only—venture aimed at VR fans. Wyatt hinted in conversation with Road to VR that a follow-up to the Aero is unlikely, despite acknowledging the undeniable demand from VR enthusiasts.
When looking at the larger VR landscape, it’s evident why Varjo is pursuing this course. While their headsets are lauded for visual clarity, they’ve never been the most compact. Given the trend toward smaller, lightweight devices—evident in models like the Bigscreen Beyond and MeganeX Superlight—adapting Varjo’s designs for this market would require a major overhaul of their technology.
Demand from non-consumer sectors is rising, particularly in military applications, where Varjo reports that business has doubled since the XR-4’s debut in early 2024. The company is robustly positioned, with over 200 employees and technology present in 19 of the 20 biggest global defense and aerospace companies, not to mention a fourth of the Fortune 100. With such impressive credentials, Varjo is clearly carving out a formidable niche beyond the consumer VR market.