The XR Weekly Update (February 4, 2025): Meta Reports Record Q4 2024, Apple Continues AR Glasses Journey, and More!

Hey there! I’m back in China for a bit and, guess what? I finally got to check out an awesome street show celebrating the new year with the traditional dragon and tiger figures. I’m having a blast, although it feels like I’ve eaten so much, I might just burst soon. What a way to go though, right? Wishing you all a fantastic Year of the Snake, and let me fill you in on the top XR news from last week! UPDATE: Apologies for the delay in getting this newsletter out—I wrote half of it and then was bed-ridden with sickness (not from the food, thankfully!). I’m finally up and about, so I wrapped it up today. Reading that opening bit made me chuckle, despite the delay. Hope you guys are still with me on this!

Top News of the Week

Meta finished off 2024 with impressive Q4 results, exciting yet leaving some points to ponder. Reality Labs, a division of Meta, celebrated hitting $1.08 billion in quarterly revenue—their best yet! The end of the year is generally a win for Meta, with Quests making popular holiday presents. All signs pointed towards a successful Q4, like the Meta Quest companion app topping the iOS store charts, a million players diving into Batman Arkham Shadow, and Quest being Amazon’s top-selling console of 2024. However, MR/VR isn’t exactly booming. So, why such an incredible quarter for Meta Reality Labs?

Well, we sort of overlooked the impact of Ray-Ban Meta glasses. Mark Zuckerberg revealed that Meta sold over a million Ray-Ban Metas last year, pulling in over $300 million in revenue. The exact revenue split between Meta and EssilorLuxottica remains a mystery, but even if Meta only claimed 30% of it, that’s over $100 million annually—more than $25 million per quarter. If we hypothetically exclude the Ray-Ban sales from that $1.08 billion, Quest-related revenues appear the same—or less—compared to last year. (We’d also need to remove last year’s revenue from Ray-Ban Meta/Stories to get precise figures.)

This suggests a few trends: MR/VR markets aren’t dying and are gradually evolving, though somewhat stagnant without major innovations to up the game. Meanwhile, the smartglasses market is budding with potential, perhaps a bit over-hyped, in my view. Zuckerberg is optimistic about Ray-Ban Meta’s future, predicting sales of 2-5 million units for the next release—an impressive figure indeed.

Zuckerberg is equally enthusiastic about Horizon Worlds, noting user growth and the platform’s upcoming visual enhancements. Although this pleases Meta executives, it’s affecting developers who publish on the Horizon Store.

Despite the fantastic revenue numbers, Meta’s expenditures reached a record $6.05 billion this quarter. While much of this is channeled into R&D to outpace competitors in developing consumer AR glasses, another portion goes to selling devices at a loss. Meta Reality Labs’ financial history shows that increased sales often coincide with increased losses—not an ideal business model in my eyes.

Since Q4 2020, Meta has spent a staggering $69 billion on Reality Labs against just $9.19 billion in earnings. And it’s set to burn even more cash, with returns expected only in the 2030s.

For more details: [Meta reports Q4 2024 financials], [Leaked memo hints at good revenues for Meta Reality Labs], [Meta Reality Labs’ record revenues and losses], [Batman Arkham Shadow’s million players], [Ray-Ban Meta sells over 1 million units], [The future visual leap of Horizon Worlds].

Other Relevant News

It seems Apple is still fine-tuning its strategy for AR glasses. Renowned tech journalist Marc Gurman reports Apple shelved some tethered AR glasses meant for iPhones due to excessive battery drain, then switched to a Mac connection, which didn’t fare well in testing—leaving them canceled.

However, Apple hasn’t surrendered in the AR race. They have a dedicated team in a secretive Santa Clara facility working on microLED displays for future AR glasses, with 2028 as the earliest release timeline. Gurman mentions Apple Vision Products Group employees feeling uncertain due to frequent changes impacting morale, which often comes with the territory of cutting-edge tech ventures.

For more details: [Apple working on MicroLEDs], [Apple cancels AR glasses].

Happy Birthday, Apple Vision Pro!

The Apple Vision Pro just turned one! My social feeds lit up with Apple fans celebrating, and I couldn’t help but join in—Happy Birthday, Vision Pro! Kudos for stirring up competition in the XR space and pushing other companies to step up their XR strategies!

For more details: [Happy Birthday Message 1], [Happy Birthday Message 2], [Happy Birthday Message 3], [Happy Birthday Message 4].

News Worth a Mention

VRChat Introduces Age Verification

VRChat now offers age verification for VRC+ subscribers, thanks to a partnership with Persona. Users can verify their age by providing official identification or a selfie. Verification isn’t mandatory, but it allows access to mature worlds and a badge indicating adult status.

VRChat is pioneering this within significant social VR environments, which is quite intriguing. For ages, users have complained about disruptive youngsters, but now there’s a way to separate adults from kids. The catch? You need to share personal info with an external company. Will people trade privacy for a better experience? And will world creators limit their content to verified adults, considering it’s only available to a minority? Time will reveal all.

For more details: [VRChat age verification release].

XReal One or Apple Vision Pro?

I used to be skeptical of comparing different devices, but Scott Stein’s review of XReal One glasses made me wonder. They’re great for watching movies, and many agree, including Stein and Tyriel Wood. With Apple’s Vision Pro emphasizing a large screen display, why not opt for the cheaper and lighter XReal One, tailored for that specific purpose? Sure, the Vision Pro offers a broader FOV, vibrant colors, and additional applications, but it’s worth pondering.

More details: [Scott Stein’s review].

Viture Releases Pro XR Glasses

Viture’s new Pro XR glasses boast 1920×1080 micro OLED displays, 46-degree FOV, 49 PPD, and 120Hz refresh rate, priced at $459 with an early bird discount of $50.

More details.

Logitech Pen as a Meta Quest Tracker

Without a Vive Tracker for Meta Quest, developers often turned to Quest controllers for object tracking in XR. Now, here’s an alternative—Logitech MX Ink pen. I recently saw two videos demonstrating this pen’s utility in object tracking with Meta Quest, and it’s fascinating. Remember, the Quest can track this pen alongside controllers, offering flexibility for user interactions. I can’t wait to see community creations sprouting from this.

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

For more details: [Logitech Pen use cases].

Introducing Haptikos to XR Haptics

Emerging startup Haptikos, based in Sunnyvale and Athens, recently revealed a prototype hand exoskeleton. Part of the Haptik OS ecosystem, it combines hardware and software to provide finger-tracking and haptic feedback to simulate the texture of virtual objects. Currently priced at $2500, the production-ready gloves should drop to $1000 by 2026—quite affordable compared to other XR gloves.

I recall testing an early prototype during a private demo at AWE months ago—glad to see it progressing well.

For more details.

Meta Tightening Leaks Control

Meta is cracking down on internal leakers, vowing to terminate any employees responsible. Citing a recent address by Zuckerberg, he’s scaling back on transparency due to leaks—ironically revealed in a leaked meeting. Oh, the irony!

For more details.

Quest Passthrough Integrates with ChatGPT

An innovator dedicated to Quest passthrough access is set to release an integration between Meta Quest 3’s camera and OpenAI GPT-4o. Combining passthrough and AI could yield powerful results—I’m eagerly awaiting this release!

For more details.

Disheartening News for VR

Unfortunately, VR’s struggles persist, as highlighted by three stories this week. Orbus VR, the pioneering VR MMO dating back to 2017, is closing. Fast Travel Games, noted for success, is laying off 30 staff due to disappointing 2024 sales. Vertigo Games is selling the Springboard VR arcade platform to Synthesis VR for streamlining.

For more details: [Orbus VR], [Fast Travel Games], [Springboard VR sale].

Content Highlights

• COLD VR launches February 11.
• Aerial VR combat game Aces of Thunder targets PSVR 2 and PC VR, arriving in 2025.
• Demeo partners with Dungeons & Dragons for Demeo X Dungeons & Dragons: Battlemarked—a standalone game, not a Demeo DLC.
• Cave Crave emulates a Climb-style spelunking simulator—a truly claustrophobic atmosphere—available for pre-order on Horizon Store at $13.
• Daisy Ridley stars in Trailblazer: The Untold Story of Mrs. Benz—narrating the tale of Bertha Benz, a 19th-century German automotive pioneer. Available on Quest come March.
• Beyond Blue: After the Storm extends the 2020 flat-screen game into VR, letting players explore the ocean—available on Meta Store at $15.
• Darknet’s VR classic reimagined for Quest as Darknet: Remastered, at $9.99 on Horizon Store.
• Craftrium transforms your space into a vibrant aquarium for free on Apple Vision Pro.
• Synth Riders marks Super Bowl LIX with a Kendrick Lamar Experience—a temporary Apple Vision Pro exclusive.
• Farming Simulator VR, a fresh farming VR adventure—not an adaptation—is set for Horizon Store from February 28.
• Owlchemy Labs’ permanent price cut—Vacation Simulator and Cosmonious High resume at $19.99 across Meta, Steam, Pico, and Apple.
• Ahoy! offers an emotional storytelling experience exclusively on Apple Vision Pro.
• Upload VR compiles its regular XR News Round-Up, featuring minor XR buzz.

For more details: [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 Reviews

Path of Fury: Episode I—Tetsuo’s Tower promises an engaging ride on rails with an 80s action vibe while offering a great workout according to Road To VR’s preview.

StageTime VR seems to be budding as a fun multiplayer karaoke journey. Although early in development, features like spatial audio give a hint of its promising future.

For more details: [Path of Fury: Episode I—Tetsuo’s Tower], [StageTime VR].

Other News

• The VR Games Showcase returns in March, boasting the “biggest lineup yet” of XR Games.
• Discover more: [VR Games Showcase]
• Mindshow presents enterprise-oriented virtual animation tools.
• Discover more: [Mindshow animation tool]
• XR4Europe publishes insightful reports on the XR landscape across European countries.
• Discover more: [XR landscape reports]
• XR Bootcamp compares all smartglasses on the market.
• Discover more: [Smartglasses comparison]
• Quest’s v74 embarks on a brave mission to further complicate its UI.
• Discover more: [Quest v74 UI review]
• Samsung trademarks “Beyond”, albeit unlikely to repeat an existing headset name.
• Discover more: [Samsung Beyond trademark]
• Astronauts reveal how HTC headsets alleviate solitude in space.
• Discover more: [HTC space use]

Partner and Friend Updates

Google Blocks is back as Open Blocks! Icosa Foundation, which revived TiltBrush as Open Brush, has similarly transformed the discontinued Google Blocks. Now known as Open Blocks and based on Google’s released code, it’s available on the Horizon Store and open source on GitHub, forever free and open. Icosa Foundation is working on Icosa Gallery—a spiritual successor to Google Poly for 3D object sharing.

Aren’t the folks at Icosa incredible?

Dive deeper: [Reddit post about Open Blocks], [Open Blocks launched—Upload VR].

A Fun XR Tidbit

There’s a cave simulator out there that could easily be misinterpreted for something else. Care for a chuckle? Check it out: [Funny link].

Do Good: Support With a Donation

As we wrap up, rather than ask for blog donations, this week I urge you to help those suffering due to the war. Please consider donating to the Red Cross to support relief efforts in Ukraine. I’ve included the link below. As always, heartfelt thanks to my amazing Patreon donors—you make this journey possible:

[Donor List]

Here’s how you can help: [Support The Red Cross in Ukraine].

(Image credits: Meta)

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