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

I’ve just returned to China for a quick visit and finally caught a street show celebrating the New Year with classic dragon and tiger figures! It’s been delightful being back, although I’ve been indulging in so much food that exploding almost seems inevitable. What a way to go! As we welcome the Year of the Snake, I send my best wishes to everyone—and let’s dive into the top XR news of the week. (Note: This newsletter is coming out two days later than planned because I was knocked out by a sickness soon after drafting half of it—not food-related, I swear! Today, I’m finally feeling better and back at my computer. Re-reading that upbeat intro brought a smile. Apologies for the delay—hope you still like me!)

Top News of the Week

(Image by Meta)

Meta’s Stellar Q4 2024

Meta recently shared its financials for the last quarter of 2024, showing strong performance but also highlighting some points worth pondering. The standout news is that Reality Labs hit a historic high with $1.08 billion in quarterly revenue, marking the division’s most successful quarter ever. Every year’s Q4 sees a surge in Meta’s revenue thanks to their popular Quest headsets making perfect holiday gifts. We had plenty of signs suggesting a good quarter—like the Meta Quest companion app topping iOS charts, a million players engaged with Batman Arkham Shadow, and the Quest being the best-selling console of 2024 on Amazon. However, with the MR/VR scene not currently thriving, it was hard to predict that this quarter would reach record heights.

We overlooked Ray-Ban Meta’s impact. Mark Zuckerberg revealed that over one million of these smart glasses were sold in 2024, translating to over $300M in revenue. We’re not sure exactly how revenue divides between Meta and EssilorLuxottica, but even if Meta takes 30%, that’s over $100M annually, translating to more than $25M each quarter. If you remove this from Meta’s $1.08B quarterly revenue, what’s left, primarily Quest-related, might be less or just about the same as last year (keeping in mind that Ray-Ban Meta/Stories sales have to be subtracted for precise calculations).

To me, this indicates two trends: the MR/VR market is still kicking (I refuse to say it’s dead) and shows mild growth, but it’s in a bit of a lull, awaiting fresh innovation for a significant leap. Meanwhile, the smart glasses market is nascent yet brimming with potential, although perhaps hyped a bit excessively. Zuckerberg seems thrilled about Ray-Ban Meta’s potential, predicting between 2 to 5 million units sold for the next version—a substantial figure.

He’s also optimistic about Horizon Worlds, claiming visual improvements and growing numbers this year. Inevitably, Horizon OS is pushing users there, much to Meta executives’ delight, though it hinders developers on the Horizon Store.

Bear in mind, despite stellar revenues, Meta’s costs were massive: $6.05 billion, marking a quarterly high. While a large portion goes to R&D as they race to produce the first consumer AR glasses, plenty come from subsidizing hardware below cost. Examining Meta Reality Labs’ financial history, it’s clear that increased sales often mean greater losses—a troubling trend for any business.

Road To VR notes, “Meta has spent a staggering $69 billion on Reality Labs since Q4 2020, with only $9.19 billion generated in return.” If you’re curious, these expenditures won’t cease; they’re expected to climb, with Meta aiming for returns only in the 2030s.

Learn more: Meta’s Q4 2024 Financials | Leaked Memo on Meta Reality Labs’ Revenue | Reality Labs’ Revenue and Loss Report | Million Players of Batman Arkham Shadow | Ray-Ban Meta Sales | Horizon Worlds Enhancements

Other Notable News

(Image by iDrop News)

Apple’s Ongoing Strategy Quest for Glasses

According to trusty Marc Gurman, Apple remains focused on AR glasses, but apparently hasn’t nailed down its strategy. In his latest dispatch, Gurman reports Apple abandoned some tethered AR glasses that would’ve connected to iPhones for a user-facing screen due to excessive battery drain. Attempts to link them to Macs also flopped after poor test feedback, leading to cancellation.

Yet, this doesn’t imply Apple’s giving up on AR glasses. Allegedly, a clandestine team in Santa Clara is advancing microLED displays designed for AR. MicroLED tech shows promise for XR’s future. Apple projects debuting AR glasses by 2028 at the earliest, though possibly later.

Per Gurman, these AR glasses’ cancelations and strategic shifts have VPG (Vision Products Group) employees feeling “unfocused and aimless,” affecting morale. Working with pioneering tech can be challenging and often frustrating, but eventually rewarding—I know firsthand.

More info: Apple’s MicroLED Development | Apple’s AR Glasses Shelved

Apple Vision Pro Turns One!

Recently, my social media feed was abuzz with Apple fans celebrating the Vision Pro’s first anniversary. Excitement was contagious, so I’m here to join the festivities: Happy Birthday, Apple Vision Pro! Thanks for injecting competition back into the XR realm and inspiring firms to hasten their plans!

More info: Birthday Message 1 | Birthday Message 2 | Birthday Message 3 | Birthday Message 4

News Worth Mentioning

(Image by VRChat)

VRChat’s Age Verification Rollout

VRChat now offers age verification for VRC+ subscribers. Users can verify age with Persona by submitting official ID or a photo. Although optional, it grants access to age-restricted zones and shows an adult badge.

VRChat’s move is a first among major social VR platforms, and its results are compelling. While users often lament annoying kids invading their space, separating adults from kids was impossible previously. Now, users have an option, though it involves sharing data with a third-party firm. Whether people will sacrifice some privacy for a more adult experience remains to be seen. Also, considering this feature applies to a small user segment, it’s uncertain how many creators will limit their VR worlds to verified adults. Only time will reveal true trends.

(PS: At VRROOM, we considered a similar feature, but some colleagues objected to sharing their ID with an external company just for VR social validation. I’m curious if their predictions hold true.)

More info: VRChat’s Age Verification

XReal One vs. Apple Vision Pro?

I usually hesitate to compare different device types, but Scott Stein’s XReal One review provoked a thought. XReal’s glasses excellently serve as a virtual movie screen, noted in this review by Stein and another by Tyriel Wood. Apple’s Vision Pro marketing similarly promised a grand display. So, why not spend far less than $3,500 on a device lighter and made for this purpose? I realize it lacks the Vision Pro’s field of view, vivid colors, and versatile usage—but mull over this notion…

More info: XReal One Review

Viture Unveils Pro XR Glasses

Viture’s new Pro XR glasses offer 1920×1080 micro OLED displays, 46° FOV, 49 PPD, and a 120Hz refresh rate. Priced at $459, there’s an additional $50 off for early buyers.

More info: Viture Pro XR Glasses

The Logitech Pen as a Meta Quest Tracker

With no Vive Tracker equivalent for the Meta Quest, developers often use a controller for tracking. Enter the Logitech MX Ink Pen: over recent days, I’ve watched videos showcasing the pen tracking objects alongside the Quest, which was intriguing. Quest can simultaneously track both controllers and this pen, allowing object tracking while users retain full controller input. I’m eager to see the innovations this could bring.

Thanks to Rob Cole and A.K. for the video links: Traction Experiments with Logitech Pen | Educational Experiments with Logitech Pen

Haptikos: A New Player in XR Haptics

Haptikos, emerging from Sunnyvale and Athens, has introduced a prototype hand exoskeleton. As part of the Haptik OS ecosystem, its integrated hardware and software aim to afford both finger tracking and haptic feedback to simulate textures. The prototype costs $2,500, but they expect retail models to drop to $1,000 by 2026, far cheaper than many XR glove alternatives.

The team is credible from my experience: I tried an early glove version at AWE months ago, and it was impressive.

More info: Haptikos’ Exoskeleton

Meta’s War Against Inside Leaks

Meta is strongly targeting leaks. The company vows to terminate any employees responsible. Zuckerberg expressed frustration with leaking, saying transparency has suffered. Ironically, this was said in a leaked meeting.

More info: Meta’s Anti-Leak Measures

ChatGPT Meets Quest Passthrough

A developer has reportedly devised a method to tap into Quest’s passthrough, aiming to sync it with OpenAI’s GPT-4o imminently. Mixing passthrough with AI holds exciting prospects—I eagerly await its unveiling!

More info: Quest Passthrough Meets ChatGPT

Troubling News for VR

The sector’s struggles persist with more discouraging updates: Orbus VR, a pioneering VR MMO from 2017, will shut down. Fast Travel Games, a renowned studio, is laying off 30 staff due to disappointing sales in 2024. Meanwhile, Vertigo Games is offloading Springboard VR to Synthesis VR for restructuring efficacy.

More info: Orbus VR Closure | Fast Travel Games Layoffs | Vertigo Games’ Restructure

Content Updates

• COLD VR: Rescheduled for release on February 11.

• Aces of Thunder: An aerial combat VR game coming to PSVR 2 and PC VR units in 2025.

• Demeo: Adapting Dungeons & Dragons with standalone game DEMEO X DUNGEONS & DRAGONS: BATTLEMARKED.

• Cave Crave: A claustrophobic, Climb-inspired spelunking simulator available on Horizon Store for $13.

• Trailblazer: Featuring Daisy Ridley, this storytelling experience centered on 19th-century automotive pioneer Bertha Benz hits Quest in March.

• Beyond Blue: After the Storm: An ocean-exploring VR successor to the 2020 flat game Beyond Blue, goes on Meta Store for $15.

• Darknet: Remastered: E McNeill’s VR classic now graces Quest for $9.99 on Horizon Store.

• Craftrium: Offers a free spatial aquarium setup with Apple Vision Pro.

• Synth Riders: Launches a Kendrick Lamar Experience next month, exclusive to Apple Vision Pro.

• Farming Simulator VR: A fresh VR farming game premieres on Horizon Store, February 28.

• Owlchemy Labs reduces its game prices: Vacation Simulator and Cosmonious High now permanently $19.99 on Meta, Steam, Pico, and Apple.

• Ahoy!: An emotional storytelling journey on Apple Vision Pro.

• Upload VR: Published an XR News Round-Up with many minor XR updates.

More info: COLD VR | Aces Of Thunder | Demeo | Cave Crave | Trailblazer | Beyond Blue | Darknet | Craftrium | Synth Riders | Farming Simulator VR | Owlchemy Labs Discounts | Ahoy! Experience | XR News Round-Up

Content Reviews

• Path of Fury: Episode I – Tetsuo’s Tower: Road To VR preview portrays it as an engaging rail shooter, offering a workout with retro 80s action style.

• StageTime VR: Appears promising as a multiplayer karaoke venture. Despite being in early stages, the spatial audio quality signals a bright future.

More info: Path of Fury: Episode I | StageTime VR

Additional News

• The VR Games Showcase returns this March, promising its biggest XR Games lineup yet.

• Mindshow unveils a business-focused virtual animation tool.

• XR4Europe shares intriguing XR country-focused reports.

• XR Bootcamp conducts a comprehensive smartglasses market comparison.

• Quest UI change: v74 update apparently complicates Quest’s UI further.

• Samsung’s potential “Beyond” headset named, though use seems unlikely due to existing products.

• Astronauts laud HTC headsets for easing solitude in space.