In 2021, Varjo, known for crafting high-end mixed reality (MR) headsets for businesses, ventured into the consumer VR market with their Aero headset. However, the company has recently shifted its focus back to enterprise needs, particularly for training simulations, making a sequel to the Aero headset unlikely.
Patrick Wyatt, Varjo’s Chief Product Officer, explained in a chat with Road to VR that they’re now concentrating on integrating their headsets for specialized purposes. For Varjo, the military and aeronautics sectors have become fertile grounds for growth. Wyatt highlighted that the goal is not merely to sell headsets but to provide comprehensive solutions that address specific client needs.
A prime example of this is Varjo’s collaboration with Leonardo, a top player in helicopter manufacturing. Together, they’ve created the Virtual Extended Reality (VxR) system aimed at training helicopter pilots, where Varjo’s headsets play a pivotal role. Thanks to the incredible visual detail of these headsets, the VxR has earned FAA FTD Level 7 Certification, marking it as the first VR-based training system to do so.
In a departure from just offering headsets as standalone products, Varjo is enhancing its “solutions engineering” capabilities. This involves closely partnering with clients to develop and apply solutions using Varjo technology to solve existing issues.
To prove their dedication to this approach, Varjo has also tailored versions of its headsets to meet common demands. Take, for example, the ‘Focal Edition’ of the XR-4, which features auto-focus for the passthrough cameras, making it more user-friendly for up-close applications like handling flight instruments. Additionally, there’s the ‘Secure Edition’ for secure environments.
These specialized headsets don’t come cheap though. While the basic XR-4 starts at $6,000, the Focal Edition is priced at $10,000, and the Secure Edition could be yours for $14,000 or even more.
Looking ahead, Wyatt announced Varjo’s commitment to supporting the XR-4 series until at least 2030, giving their enterprise clients assurance of continued reliability and service.
With this focus on long-term solutions and custom systems, it’s evident the company is stepping back from consumer-centric products.
Varjo’s foray into consumer VR with the Aero might remain a standalone venture. Initially, they had plans for a series that appealed to VR enthusiasts, but according to Wyatt, they’re steering more towards their enterprise market, though he doesn’t entirely rule out a future Aero follow-up.
While this decision might disappoint VR fans, it makes sense strategically. Despite Varjo’s excellence in visual quality, their headsets have always been on the bulkier side. In contrast, the consumer market is moving towards more compact and lightweight designs, like the Bigscreen Beyond and MeganeX Superlight. Competing there would require a significant overhaul of Varjo’s design philosophy.
Reflecting their success beyond consumer products, Varjo reports a dramatic increase in demand from military uses, with business volume doubling since the XR-4’s launch in early 2024. They now employ over 200 people, with their technology being used by 19 out of the 20 largest defense and aerospace firms globally, and within a quarter of Fortune 100 companies.