The XR Weekly Update (Feb 4, 2025): Meta Reports Record-Breaking Q4 2024, Apple Navigates AR Glasses Development, and More!

I’m back in China for a bit, and I finally got the chance to witness a street performance celebrating the New Year with the iconic dragon and tiger figures! I’m having a blast, though I’ve been indulging in so much delicious food that I might just burst. Honestly, it wouldn’t be a bad way to go. As we usher in the Year of the Snake, I want to extend my best wishes to you all. Now, let’s dive into the top XR news from last week! (UPDATE: This newsletter is coming out a couple of days late because, after writing the first half, I came down with a nasty bug—not food-related! I’ve finally managed to crawl out of bed and sit in front of my computer again. Rereading that cheerful opening brightened my mood. Sorry for the delay, folks—I hope you’re still fond of me.)

Top news of the week

(Image by Meta)

Meta’s Stellar Fourth Quarter in 2024

Meta recently shared its financial results for the last quarter of 2024, which are indeed impressive. But there’s more to think about. Reality Labs achieved a milestone, posting $1.08 billion in quarterly revenue, the highest ever for this division. Normally, Q4 is a strong period for Meta thanks to holiday demand for Quests. This year was no exception, with signs like the Meta Quest app topping iOS charts, Batman Arkham Shadow crossing a million players, and Quest becoming Amazon’s best-selling console in 2024.

However, we didn’t anticipate Meta’s Reality Labs shattering records since the MR/VR market is facing challenges, just waiting for a breakthrough to drive significant growth. A key factor was the inclusion of Ray-Ban Meta into the mix. According to Zuckerberg, over a million Ray-Ban Meta glasses were sold, generating $300M+ in revenue. We’re still unclear on the revenue split between Meta and EssilorLuxottica, but even a modest 30% share means Meta earned $100M+ for the year from these glasses—subtract that from their quarterly total, and actual revenues from Quest-led sales might not exceed or even match last year’s figures (considering Ray-Ban’s revenue subtraction last year for accuracy).

For me, this highlights a couple of trends: first, the MR/VR market, while not dead, is certainly in need of major innovations to achieve significant growth. Second, the smartglasses market, though somewhat overhyped, shows fresh potential. Zuckerberg is particularly upbeat about Ray-Ban Meta’s future, projecting sales of 2 to 5 million units for the next iteration, which would be quite a feat. He is also optimistic about Horizon Worlds, forecasting growth that will make it even more visually captivating. This is likely due to Horizon OS intentionally funneling people toward Horizon Worlds, keeping Meta executives delighted but impacting developers on the Horizon Store negatively.

Despite Meta’s robust revenue figures, it’s crucial to acknowledge their significant expenditure: $6.05 billion, a quarterly high. While a considerable chunk of this is spent on R&D to lead in AR glasses, another portion stems from selling devices below cost. Historically, the more Meta sells, the steeper its losses, suggesting a questionable business model. As Road To VR aptly notes, Meta has invested $69 billion into Reality Labs since Q4 2020, recovering only $9.19 billion. Expenses are projected to rise further, with investments expected to pay dividends only in the 2030s.

Additional details (Meta’s Q4 2024 financials) (Leaked memo on Meta Reality Labs revenues) (Record revenues and losses for Meta Reality Labs) (Batman Arkham Shadow’s 1 million players) (Over 1M units of Ray-Ban Meta sold) (Horizon Worlds’ visual enhancements)

Other relevant news

(Image by iDrop News)

Apple’s Ongoing Quest for AR Glasses Strategy

Marc Gurman shares that Apple remains interested in pursuing AR glasses but hasn’t yet nailed down a definitive strategy. According to Gurman, Apple has scrapped some tethered AR glasses initially meant to connect to an iPhone to project a large display for users. Early tests showed excessive battery drain, prompting a shift to a Mac connection, but unfavorable feedback led to cancellation altogether.

This doesn’t imply Apple has abandoned AR glasses; in fact, they have a team in a “secretive facility” in Santa Clara working on microLED displays for future XR applications. These displays hold great promise in advancing XR technology. However, we might not see Apple’s AR glasses until 2028, potentially even later.

Apple’s Vision Products Group reportedly faces morale challenges amid these shifts, with some employees sensing a lack of focus and clear directives. Innovating in new tech fields is tough and often disheartening, yet persistence usually pays off.

Additional details (Apple’s work on MicroLEDs) (Apple cancels AR glasses)

One Year of Apple Vision Pro!

Recently, my social feeds were abuzz with Apple fans celebrating the Vision Pro’s first anniversary. It felt infectious, so I hopped on the happy wave: Happy Birthday, Apple Vision Pro! Thanks for rekindling competition in the XR realm and pushing other companies to fast-track their plans!

Additional details (Birthday Message 1) (Birthday Message 2) (Birthday Message 3) (Birthday Message 4)

News worth a mention

(Image by VRChat)

VRChat Rolls Out Age Verification

VRChat has officially implemented age verification for VRC+ members. Users subscribing to VRC+ can opt for verification through Persona, requiring either official documents like a national ID or facial photos. While not compulsory, verified users gain access to age-restricted realms and display adult verification badges.

This makes VRChat the first major social VR platform offering such a feature. It’ll be intriguing to observe the outcomes. Users have long complained about disruptive minors, yet lacked a system to separate adults from children. Now, there’s a way, albeit involving sharing personal data with an external entity. Will users prioritize a serene experience over privacy concerns? Also, given that verification applies to a subset of users, will creators limit content to confirmed adults? Only time will reveal the answer.

(PS: During my tenure at VRROOM, I suggested a similar solution. Many colleagues resisted sharing documents merely to verify age in a VR space, so I’m intrigued to see who was right.)

Additional details (More VRChat Information)

XReal One or Apple Vision Pro?

Typically, I avoid comparing unlike devices, but Scott Stein’s XReal One review got me thinking. Praised for delivering an excellent virtual display for movies, XReal One seems like a budget-friendly alternative to the Vision Pro for those not seeking its full array of features. Sure, Vision Pro boasts a larger field of view, vibrant colors, and diverse functions, but why not ponder this provocative idea?

Additional details (More XReal Information)

Viture Unveils Pro XR Glasses

Viture launched its Pro XR glasses, featuring 1920×1080 micro OLED displays, a 46° FOV, 49 PPD, and a 120Hz refresh rate. They’re priced at $459 with an early bird discount of $50.

Additional details (More Viture Information)

Logitech Pen Shines as Meta Quest Tracker

Without a Vive Tracker equivalent for Meta Quest, developers often repurpose a Quest controller for object tracking in XR. Enter the Logitech MX Ink pen as an alternative. Two fascinating videos this week demonstrated its usability for object tracking alongside controllers on Meta Quest, expanding creative possibilities. (Kudos to Rob Cole and A.K. for sharing these videos.)

Additional details (Review of Weapon Controller with Logitech Pen) (Educational Trials Using Logitech Pen)

Haptikos Poised for XR Haptics Market

Silicon Valley and Athens-based startup Haptikos emerged from stealth mode to reveal a prototype hand exoskeleton. Part of their Haptik OS ecosystem, this exoskeleton offers finger tracking and haptic feedback to simulate textures. Initially priced at $2500, production models expected by 2026 aim to be priced at $1000—quite competitive compared to existing XR glove solutions.

Since trying these gloves at AWE, I’ve found them promising.

Additional details (More Haptikos Information)

Meta Cracks Down on Leaks

Fed up with internal leaks, Meta pledged to terminate any staff found responsible. Zuckerberg noted a move away from transparency, expressing frustrations over repeated leaks. Ironically, this was revealed in a leaked meeting—talk about irony.

Additional details (More Meta Leak Information)

Quest Passthrough Meets ChatGPT

A developer looking at optimal Quest passthrough integration is set to combine Meta Quest 3’s cameras with OpenAI GPT-4o. The blend of passthrough and AI holds enormous potential, and I’m eagerly awaiting its release!

Additional details (More Integration Information)

More VR Challenges

The VR sector faces ongoing hurdles, as evidenced by several stories this week. Orbus VR, a pioneering VR MMO since 2017, is closing down. Fast Travel Games, a leading studio, is shedding 30 jobs amid lower-than-expected 2024 sales. Meanwhile, Vertigo Games is offloading the arcade platform Springboard VR to Synthesis VR for operational efficiency.

Additional details (Orbus VR) (Fast Travel Games) (Springboard VR)

Content Updates

COLD VR will now launch on February 11.
Aces of Thunder, a VR aerial combat game, is en route to PSVR 2 and PC VR platforms in 2025.
Demeo introduces an adaptation titled DEMEO X DUNGEONS & DRAGONS: BATTLEMARKED, unrelated to Demeo as a DLC.
Cave Crave, a Climb-style spelunking simulation, can be pre-ordered for $13 on the Horizon Store.
Daisy Ridley stars in Trailblazer: The Untold Story of Mrs. Benz, debuting on Quest in March, exploring German automotive pioneer Bertha Benz’s legacy.
Beyond Blue: After the Storm, a VR sequel to Beyond Blue, is now on Meta Store for $15.
Darknet: Remastered, E McNeill’s classic VR title, lands on Quest, available for $9.99 on Horizon Store.
Craftrium allows Vision Pro users to create spatial aquariums for free.
Celebrating Super Bowl LIX, Synth Riders introduces a Kendrick Lamar experience, exclusive to Vision Pro.
Farming Simulator VR, a brand-new game, arrives on Horizon Store on February 28.
Owlchemy Labs makes Vacation Simulator and Cosmonious High perpetually priced at $19.99 across platforms.
Ahoy! delivers an emotive storytelling journey on Apple Vision Pro.
Upload VR offers its XR News Round-Up, chocked full of minor XR updates.

Reviews available (COLD VR) (Aces Of Thunder) (Demeo) (Cave Crave) (Trailblazer) (Beyond Blue: After The Storm) (Darknet) (Craftrium) (Synth Riders) (Farming Simulator VR) (Owlchemy Labs) (Ahoy!) (XR News Round-Up)

Game Previews

Path of Fury: Episode I – Tetsuo’s Tower, with its rail-guided gameplay, offers an engaging workout wrapped in an 80s action game vibe, as seen in Road To VR’s preview.

StageTime VR introduces a budding multiplayer karaoke experience. As the app is still evolving, features like spatial audio show promise for its future.

Game insights (Path of Fury: Episode I — Tetsuo’s Tower) (StageTime VR)

Other news

The VR Games Showcase will be back in March, promising a hefty lineup of XR gems.

News from partners (and friends)

Google Blocks makes a comeback as Open Blocks! Icosa Foundation, the team that revived TiltBrush as Open Brush, now extends the same love to Google Blocks. This low-poly design tool, initially abandoned by Google, is reborn as Open Blocks, now accessible on both the Horizon Store and GitHub as open-source. Icosa Foundation also plans to unveil Icosa Gallery, echoing Google Poly’s spirit, for sharing and downloading 3D creations. They indeed deserve admiration for their efforts. Learn more (Open Blocks Reddit Post) (Open Blocks Launch)

Some XR fun

There’s a cave simulator causing quite the stir with its unintentional comedic value. Check it out (Funny Link)

Donate for good

As this final segment rolls around, I’m calling on you not to support my blog but to extend a helping hand to those suffering from war’s aftermath. Please consider donating to support humanitarian relief in Ukraine. Below is a link to do so.

My heartfelt gratitude goes 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 link to support the Red Cross in Ukraine: Support The Red Cross in Ukraine

(Header image by Meta)

(Note: This blog includes advertisements and affiliate links to sustain itself. If you click one, I’ll earn a small commission from your purchase. Read my full disclosure here.)

Share this with other innovators: