XR Weekly Review (February 4, 2025): Meta Reports Record Q4 2024, Apple Navigates AR Glasses Development, and More!

Returning to China for a short visit, I was thrilled to finally catch a street performance celebrating the New Year with the iconic dragon and tiger figures! I’m definitely enjoying my time here, perhaps a little too much given the amount of delicious food I’ve been indulging in. If I keep this up, I might just burst—and what a way to go! As we usher in the Year of the Snake, I want to extend my best wishes to everyone. Now, let’s dive into some of the most exciting XR news from the past week. (UPDATE: Apologies for the delay in publishing this newsletter. I was unexpectedly under the weather for a couple of days after writing half of it—not due to the food, thankfully! It’s only today that I’ve been able to get back on my feet and wrap this up. Re-reading my upbeat opening gave me a much-needed chuckle. Thank you for being patient; I hope I still have your affection.)

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 impressive! However, there’s a bit more depth to the story. Here’s the good news: Reality Labs reported a record $1.08 billion in quarterly revenue—the highest ever for Meta’s division. The holiday season usually boosts sales, with VR Quests being popular gifts. But this year’s numbers exceeded expectations, thanks in part to the Meta Quest companion app ranking first on the iOS store, over a million players engaging with Batman Arkham Shadow, and the Quest dominating Amazon’s console sales for 2024.

The surprise factor was Ray-Ban Meta. According to Zuckerberg, Meta sold over 1 million of these smart glasses in 2024—adding over $300 million to their revenue. While we don’t know the exact profit-sharing arrangement with EssilorLuxottica, even if Meta took a 30% share, that’s over $100 million annually, or more than $25 million quarterly. Excluding these from the quarterly total, revenue from Quest would actually remain stagnant compared to last year, highlighting the potential of smart glasses. There’s still a sustained interest and slight growth in the MR/VR market, even if it’s awaiting fresh innovation to spark a leap forward. Meanwhile, the smart glasses segment shows promise, albeit surrounded by some overexuberant hype. Zuckerberg is optimistic about Ray-Ban Meta’s future, projecting sales of 2 to 5 million units in the next edition.

On another note, Zuckerberg is enthusiastic about Horizon Worlds, citing growth and predicting increased visual allure this year. While it’s great news for Meta, it’s a bit worrying for developers relying on the Horizon Store as Horizon OS directs users towards Worlds. Worth mentioning, Meta’s cost for Q4 was a staggering $6.05 billion—the highest ever, attributed largely to R&D for AR glasses and selling devices below cost. Meta’s financial history shows a pattern: higher sales coincide with greater losses, which doesn’t seem sustainable.

As Road to VR pointed out, "Meta has allocated about $69 billion to Reality Lab since Q4 2020 and earned $9.19 billion in the same span." And there’s no slowdown in sight; Meta plans to continue heavy investments, anticipating returns in the 2030s.

Find more details on Meta’s Q4 2024 financials, leaked positive memos, record revenues and losses, Batman Arkham Shadow’s popularity, Ray-Ban Meta sales success, and Horizon Worlds’ future enhancements.

Other Noteworthy News

Apple and AR Glasses: Searching for the Right Plan

According to insider Marc Gurman, Apple isn’t giving up on AR glasses but is still figuring out the optimal strategy. In a recent report, Gurman revealed Apple shelved plans for AR glasses tethered to iPhones due to excessive battery drain, pivoting towards a Mac connection, which also faced negative feedback during testing and was ultimately canceled.

However, Apple is continuing its efforts with a dedicated team in Santa Clara working on microLED displays for future AR glasses. These displays hold promise for XR’s future, and while executives hope for 2028 as a release year, it could take even longer. With frequent project changes, folks in Apple’s Vision Products Group (VPG) report lacking clear team direction, affecting morale. Developing new tech is tough, yet with patience, it often brings rewards.

More info: Apple’s work on microLEDs, and AR glasses cancellation.

Happy Birthday, Apple Vision Pro!

A few days back, my social media feed buzzed with Apple enthusiasts celebrating Vision Pro’s birthday. It was delightful, and I couldn’t resist chiming in: Happy Birthday, Apple Vision Pro! You’ve brought healthy competition to the XR scene and pushed companies to fast-track their XR plans!

More info: Various birthday messages for Vision Pro.

News Worth Mentioning

VRChat Introduces Age Verification

VRChat now offers age verification for VRC+ subscribers using Persona’s services, requiring either official ID documents or a facial photo. While not compulsory, it grants access to age-restricted worlds and an adult verification badge. VRChat is pioneering this feature in social VR, amidst ongoing complaints about younger users disrupting experiences. Now, there’s a way to separate users, but it involves sharing personal data externally. Whether users will prioritize privacy over a kid-free experience is the big question, and we’ll see how content creators respond—time will tell.

P.S. At VRROOM, I suggested something similar. Many internal objections were about sharing documents for age verification in a VR space. I’m eager to see if they were right.

More info.

XReal One vs. Apple Vision Pro: A Thought

I’ve generally avoided comparing different devices, but Scott Stein’s review of XReal One glasses made me reconsider. XReal One is acclaimed for offering a virtual display ideal for movie-watching, backed by reviews from Stein and Tyriel Wood. Initially, Apple marketed Vision Pro similarly, emphasizing its big screen feature. So, why not opt for a less expensive, lighter alternative like XReal One focused on this purpose? Although Vision Pro has superior FOV, colors, and versatile uses, it’s worth pondering!

More info.

Viture Unveils Pro XR Glasses

Viture has launched new 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 a $50 early-bird discount.

More info.

Logitech Pen as a Meta Quest Tracker

Without a Vive Tracker equivalent for Meta Quest, developers have often repurposed Quest controllers for tracking objects in XR. Now, there’s an alternative: the Logitech MX Ink pen, proven effective through compelling demonstration videos. Notably, the Quest can track both controllers and the pen simultaneously, enabling one tracked object while retaining both controllers for user interaction. I’m intrigued to see the community’s innovations with this tool!

Thanks to Rob Cole and A.K. for sharing the video links.

More info: Weapon controller and educational experiments using Logitech Pen.

Haptikos: A New Player in XR Haptics

Emerging from stealth mode, Haptikos, based in Sunnyvale and Athens, introduced a prototype hand exoskeleton. Part of the Haptik OS ecosystem, it offers finger-tracking and haptic feedback mimicking textures. This glove prototype costs $2500 now but is expected to drop to $1000 by its 2026 release—considerably cheaper than other XR glove options. I find the team credible, recalling my experience with an earlier version at AWE, which was already functioning impressively.

More info.

Meta’s Crackdown on Leaks

Meta’s not taking leaks lightly, vowing to dismiss anyone caught leaking information. Zuckerberg expressed frustration at openness leading to leaks, asserting it hampers communication. Irony alert: this announcement also got leaked!

More info.

Quest Passthrough Meets ChatGPT

A clever developer already working on Quest passthrough integration is poised to combine Meta Quest 3’s camera with OpenAI’s GPT-4o. This passthrough-AI fusion promises exciting potentials—waiting eagerly for its debut!

More info.

More Difficult News for VR

Challenges persist in the VR realm, underscored by three updates this week: Orbus VR, the pioneering VR MMO since 2017, is closing; Fast Travel Games is reducing its workforce by 30 due to lower-than-expected 2024 sales; Vertigo Games is selling Springboard VR platform to Synthesis VR for strategic restructuring.

More info on Orbus VR, Fast Travel Games, and Springboard VR.

Content Highlights

• COLD VR arrives on February 11.
• Aerial combat game Aces of Thunder is set for PSVR 2 and PC VR in 2025.
• Demeo partners with Dungeons & Dragons for a distinct game titled "DEMEO X DUNGEONS & DRAGONS: BATTLEMARKED," not a mere DLC.
• Cave Crave channels Climb-inspired spelunking and is now pre-orderable on the Horizon Store for $13.
• Trailblazer: The Untold Story of Mrs. Benz, starring Daisy Ridley, will explore Bertha Benz’s pioneering automotive journey on Quest in March.
• Beyond Blue: After the Storm, a VR sequel to the 2020 Beyond Blue game, lets players explore the ocean, now available on the Meta Store for $15.
• E McNeill’s VR classic Darknet debuts on Quest as Darknet: Remastered for $9.99 on the Horizon Store.
• Craftrium presents a spatial aquarium experience, free on Apple Vision Pro.
• Synth Riders celebrates Super Bowl LIX with a Kendrick Lamar special on Apple Vision Pro in February.
• Farming Simulator VR is a fresh VR-centric experience launching on the Horizon Store on February 28.
• Owlchemy Labs cuts prices for Vacation Simulator and Cosmonious High to $19.99 on Meta, Steam, Pico, and Apple.
• Ahoy! delivers a heartfelt narrative exclusively on Apple Vision Pro.
• Upload VR’s XR News Round-Up covers a slew of XR news snippets.

Further content details: 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.

Reviews on Content

• Path of Fury: Episode I — Tetsuo’s Tower, previewed by Road To VR, promises a rail-based yet thrilling workout in a retro action setting.
• StageTime VR, a nascent multiplayer karaoke platform, impresses with its spatial audio features, suggesting a bright future.

More info on Path of Fury: Episode I — Tetsuo’s Tower and StageTime VR.

Other News

• The VR Games Showcase is slated for March, claiming their most extensive XR Games line-up yet.
• Animation tool Mindshow rolls out a virtual animation solution for enterprise needs.
• XR4Europe publishes several reports on the XR landscape across Europe.
• XR Bootcamp compares the current smartglasses market extensively.
• Quest’s v74 update reportedly worsens its interface.
• Samsung trademarks “Beyond,” but reusing a headset name seems unlikely.
• Astronauts reveal how HTC headsets alleviate feelings of isolation.

Learn more about these updates across respective articles and releases.

Partner (and Friend) Updates

Google Blocks makes a comeback as Open Blocks!

Icosa Foundation, the same team behind Open Brush after TiltBrush’s discontinuation, has given Google Blocks a new lease on life with Open Blocks. Building on Google’s abandoned codebase, it’s now available for free on the Horizon Store and open source on GitHub. Icosa is also working on Icosa Gallery, a spiritual successor to Google Poly for 3D objects sharing. Kudos to the incredible folks at Icosa!

Read more on Open Blocks’ revival and its go-live on Upload VR.

A Dose of XR Fun

There’s a cave simulator out there that’s amusingly open to misinterpretation… Check out this funny link!

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(Header image by Meta)

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