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

I’m back in China for a short visit and was finally able to catch a street performance featuring the powerful symbols of the dragon and the tiger, celebrating the new year. It’s been a delightful time here, but I have to confess that the local cuisine has been so tempting, I’ve indulged way too much and feel like I might just pop any minute! If it must happen, what a delicious way to go! As we usher in the Year of the Snake, I want to extend my heartfelt wishes to everyone. Let’s dive into the most exciting XR news from last week! (Quick update: This newsletter is coming out a bit late—two days, to be precise—because I was knocked out by an illness unrelated to the scrumptious dishes here. Only today could I actually get up and finish writing this piece, and reading my cheerful intro made me chuckle. Apologies for the delay—I hope you forgive me.)

Top news of the week

Meta had a great Q4 2024

Meta has come out with its financials for Q4 of 2024, and they’re looking fantastic with a few points to ponder. The standout is Reality Labs hitting a record $1.08 billion for the quarter—the highest ever for that segment. Every Q4 sees a bump in Meta’s revenues, thanks to the popularity of Quests as holiday gifts. The buzz was brewing that this might be a good quarter for Meta: the Meta Quest companion app topped the iOS store charts, a million users dove into Batman Arkham Shadow, and Quest was the bestseller on Amazon for 2024. However, even with MR/VR facing a somewhat sluggish period, this quarter managed to eclipse expectations, becoming Reality Labs’ best yet.

The overlooked factor was how Ray-Ban Meta glasses contributed to the figures. Zuckerberg revealed that over a million units were sold in 2024, amounting to $300 million in revenues. While exact revenue sharing with EssilorLuxottica isn’t clear, even a conservative estimate points to $100 million annually from these sales or about $25 million each quarter. Removing this contribution from the $1.08 billion would suggest a plateau in Quest sales compared to last year.

Two trends emerge: the MR/VR market refuses to die, maintaining a façade of growth while waiting for a breakthrough innovation to breathe new life into it. Meanwhile, smartglasses are showing promising beginnings, though perhaps over-hyped. Zuck is particularly excited about Ray-Ban Meta glasses, predicting sales of 2–5 million units for their next version—a potentially impressive feat.

Horizon Worlds is another area where Zuck’s ambitions are growing; he anticipates it’ll dazzle visually this year. Although Horizon OS appears tweaked to steer users towards Horizon Worlds, which delights Meta execs, it opposes the ventures of developers on the Horizon Store.

Something to not bye is while Meta flaunts high revenue numbers, its expenses top $6.05 billion, marking its highest quarterly spending. This stems partly from R&D pursuing the first consumer AR glasses, but also selling devices at a loss. Meta Reality Labs’ history shows the more it sells, the more money it loses—a potentially unsustainable business model. Road To VR noted that Meta has expended $69 billion on Reality Laboratories since Q4 of 2020, while only generating $9.19 billion.

Be prepared: Meta has signaled that expenses won’t taper off but will likely rise as they prepare for returns only in the 2030s.

More info [Meta Q4 2024 financials], [Leaked memo about Meta Reality Labs], [Record revenues for Meta Reality Labs].

Other relevant news

Apple is still finding its best strategy for glasses

According to Marc Gurman, Apple’s dance with AR glasses continues. Despite an enduring interest, they haven’t pinned down a strategy yet. Gurman reported that they scrapped AR glasses meant to tether to iPhones after battery issues, then shifted to a Mac connection, only to again abandon the project due to poor feedback from early testing.

However, Apple isn’t throwing in the towel. They’re knee-deep in the development of microLED displays at a covert facility in Santa Clara with hopes of producing AR glasses, albeit not before 2028.

There’s a buzz within Apple’s Vision Products Group—allegedly a lack of focus and direction, impacting morale. Venturing into pioneering tech isn’t for the faint-hearted and can be super frustrating with eventual payoffs.

More info [Apple working on MicroLEDs], [Apple cancels AR glasses].

Apple Vision Pro is one year old!

Scrolling through my X timeline, I noticed an outpouring of well wishes for the Apple Vision Pro’s first birthday. It was heartwarming to see it showered with love. So here’s to joining that joyous bandwagon—Happy Birthday, Apple Vision Pro! It’s been a game-changer, rekindling competition in the XR universe and urging rivals to ramp up their XR timetables.

More info [Happy Birthday Message 1], [Happy Birthday Message 2].

News worth a mention

VRChat introduces age verification

VRChat has rolled out age verification for VRC+ subscribers. Utilizing Persona’s services, users can confirm their age via official documents or a face photo. While not compulsory, it allows access to age-locked worlds and displays an adult-only badge.

VRChat is a big player in social VR, and this is its introduction of age verification. Enthusiasts have long bemoaned squealing kids spoiling their experiences without a way to segregate adults. Here’s a solution, although it involves sharing personal data with a third-party provider. Will users prioritize privacy or opt for an adult-only zone? And how many creators will lock their worlds to verified adults? Only time will tell…

(When I was with VRROOM, I pitched a similar resolution, and many were hesitant about submitting documents to an external firm just for age verification in VR. I’m curious to watch this unfold!)

More info

XReal One or Apple Vision Pro?

I’ve always hesitated comparing different types of gadgets, but Scott Stein’s XReal One glasses review got me pondering. The XReal One offers an excellent cinematic display experience, getting nods from various reviews like Scott’s and Tyriel Wood’s. Apple marketed Vision Pro with the same promise of providing a big screen in front of you. If that’s the primary use case, why not splurge far less than $3500 for a lighter, specialized device? Yes, Vision Pro boasts a broader FOV, brighter hues, and multifunctionality, but let this thought marinate.

More info

Viture releases Pro XR glasses

Viture has launched their Pro XR glasses boasting 1920×1080 micro OLED displays, a 46° FOV, 49 PPD, and 120Hz. Priced at $459, with an introductory discount of $50.

More info

The Logitech Pen is a good tracker for the Meta Quest

Typically, in XR, developers tether together a Quest controller for object tracking as no counterpart to the Vive Tracker exists for Meta Quest. Enter the Logitech MX Ink pen—a replacement for tracking objects with the Meta Quest. Recently, I stumbled upon two intriguing videos using this pen for tracking. The Quest can simultaneously track the controllers and the pen, which means you could offer object tracking while still putting two controllers into the user’s hands. I’m keen to witness community creativity explode with this!

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

More info [Weapon controller using the Logitech Pen], [Educational experiments using the Logitech Pen].

Haptikos aims to be a new contender in the XR haptics scene

Hailing from Sunnyvale and Athens, Haptikos steps out of the shadow to reveal a prototype hand exoskeleton. Part of their Haptik OS ecosystem, combining hardware and software, the exoskeleton purports to transmit finger-tracking data alongside haptic renditions mimicking touch textures. The glove prototypes are priced at $2500, with plans to drop to $1000 by 2026—a significant reduction compared to other XR gloves.

I found the team credible—having tested an early prototype at AWE a while back, which was already pretty promising.

More info

Meta aims at firing all leakers

Meta is cracking down on leakers, threatening to sack those found guilty. Zuckerberg admitted he’d have to tone down transparency, miffed by frequent leaks. “We attempt to be open, but everything leaks,” he noted. Humorously, the meeting itself leaked—a bitter irony indeed.

More info

Integrating Quest passthrough and ChatGPT

Exploration continues with Quest passthrough, with anticipation of integrating it with OpenAI GPT-4o. Fusing passthrough with AI could forge powerful tools, sparking my curiosity for this upcoming feature!

More info

New bad news for VR

The VR sector’s challenges continued this week with more disheartening updates. Orbus VR, the pioneering VR MMO from 2017, is closing down. Fast Travel Games, an acclaimed studio, is laying off 30 staff due to disappointing sales in 2024. Meanwhile, Vertigo Games is offloading the arcade platform Springboard VR to Synthesis VR to streamline.

More info [Orbus VR], [Fast Travel Games], [Springboard VR].

Some news about content

• COLD VR: New release set for February 11
• Aces of Thunder: An aerial VR combat title bound for PSVR 2 and PC VR in 2025
• Demeo: Adaptation called Demeo x Dungeons & Dragons: Battlemarked coming soon
• Cave Crave: A spelunking simulator inspired by Climb, available on Horizon Store for $13
• Trailblazer: Starring Daisy Ridley as Bertha Benz, debuting on Quest in March
• Beyond Blue: After the Storm: A VR sequel exploring the ocean in VR, now on Meta Store for $15
• Darknet: Remastered: E McNeill’s classic VR game for Quest, priced at $9.99 on Horizon Store
• Craftrium: Create an aquarium in your space via Apple Vision Pro
• Synth Riders: Celebrates Super Bowl LIX with a Kendrick Lamar experience, exclusive to Apple Vision Pro
• Farming Simulator VR: New VR farming experience on Horizon Store from February 28
• Owlchemy Labs discounts: Vacation Simulator and Cosmonious High now $19.99 on various platforms
• Ahoy!: Emotional storytelling on Apple Vision Pro
• Upload VR’s XR News Round-Up: Featuring minor XR tidbits

More info [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].

Some reviews about content

• Path of Fury: Tetsuo’s Tower: A potentially exciting game previewed by Road To VR, combining rail shooters with an 80s action workout.
• StageTime VR: A promising multiplayer karaoke experience that endeavors to stand out with spatial audio.

More info [Path of Fury: Tetsuo’s Tower], [StageTime VR].

Other news

• It’s time again for the VR Games Showcase return in March—anticipating an impressive lineup from XR Games

Learn more

• Mindshow introduces a virtual animation tool geared towards enterprises

Learn more

• XR4Europe has released various reports detailing the XR landscape across European nations

Learn more

• XR Bootcamp unveils a handy comparison among the smartglasses market

Learn more [Comparison spreadsheet], [Comparison article].

• The Quest’s latest update (v74) seemingly manages the rare feat of making the current UI even worse (humor intended!)

Learn more

• Samsung trademarks the name “Beyond,” but unlikely to employ it given the prior headset known by this name

Learn more

• How HTC headsets assist astronauts feel comforted when alone in outer space

Learn more

News from partners (and friends)

Google Blocks is resurrected as Open Blocks! Icosa Foundation, which famously restored TiltBrush as Open Brush, has pulled a similar move with Google Blocks. It’s now Open Blocks, available on the Horizon Store and open source on GitHub, free for everyone. Additionally, a successor to Google Poly, dubbed Icosa Gallery, is underway. Huge kudos to Icosa for their incredible work.

Learn more [Reddit post on Open Blocks], [Open Blocks launch—Upload VR].

Some XR fun

It’s a cave simulator, but it might elicit some humorous interpretations… [Funny link]

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