The XR Weekly Update (February 4, 2025): Meta's Record-Breaking Q4 2024, Apple's Ongoing AR Glasses Journey, and More!

Just popped back to China for a bit and had the chance to catch a fantastic street performance to ring in the New Year, complete with the classic dragon and tiger! I’m having a blast here, although I’m eating so much it feels like I might burst any minute. Not a bad way to go, right? As we step into the Year of the Snake, I extend my warmest wishes to you all. Now, let’s dive into the hottest XR news from last week! (UPDATE: This newsletter’s timing got derailed as I was bedridden for a couple of days — and no, it wasn’t the food! I finally feel good enough to get back on my computer and finish what I started. Rereading that upbeat intro brought a smile to my face. Apologies for the delay; I hope you’re still with me!)

Top News of the Week

Meta’s Stellar Q4 2024

Meta has shared the numbers for the last quarter of 2024, and they’re definitely worth celebrating, though there’s more beneath the surface. The standout figure? Reality Labs pulled in a record $1.08 billion, marking it the division’s best performance yet. The holiday season was clearly kind, as always, to Meta with an uptick in Quest sales, underlined by the Meta Quest app topping iOS charts, a million players enjoying Batman Arkham Shadow, and Quest ousting competitors as 2024’s most popular console on Amazon. Yet, the overall MR/VR scene isn’t experiencing a boom, surprising many this was such a landmark quarter for Reality Labs. A big factor overlooked was Ray-Ban Meta’s contribution to these figures. In 2024, over a million Ray-Ban Meta glasses were sold, translating to more than $300 million in sales. Even with a hypothetical 30% revenue share for Meta, this accounted for a significant chunk — upwards of $25 million per quarter from these glasses alone. The main takeaway? MR/VR isn’t dead, it’s just in a holding pattern, waiting for the next big thing to give it a push. At the same time, the smart glasses market is proving promising, though possibly with more hype than substance, at least for now. Zuckerberg is particularly enthusiastic about Ray-Ban Meta, predicting the next version could sell between 2 to 5 million units. Zuckerberg is similarly optimistic about Horizon Worlds, promising enhanced visuals and growing popularity, although it’s undercutting other developers’ opportunities by driving users to Meta’s in-house experiences. However, revenue isn’t the only figure worth noting. Meta’s expenditures were immense — a whopping $6.05 billion this quarter. While much of this goes toward R&D and staying ahead in the AR competition, another significant portion comes from subsidizing device costs. As history shows, the more Meta sells, the more it seems to lose money. Per Road to VR, "Meta has invested around $69 billion since Q4 2020 in Reality Labs, only pulling in $9.19 billion in the same window." And if you were wondering, Meta confirms the cash burn will continue, with payoffs expected only in the 2030s.

For more info: Meta reports Q4 2024 financials, Leaked memo hints at Reality Labs’ revenue success, Record-setting numbers at Reality Labs, Batman Arkham Shadow hits 1M players, Ray-Ban Meta sales exceed 1M units, Horizon Worlds’ vision for stunning visuals.

Other Relevant News

Apple’s Strategic Struggles with AR Glasses

According to insights from Marc Gurman, Apple remains committed to AR glasses but is yet to nail down a solid strategy. In a recent report, Gurman mentioned Apple had shelved plans for iPhone-tethered AR glasses due to excessive battery drain, subsequently experimenting with a Mac connection, which also didn’t pan out after adverse feedback. But Apple isn’t dropping the AR glasses ambition altogether. They’re working on microLED displays at a secretive Santa Clara lab, aiming for AR glasses around 2028 at the earliest. Amid the reshuffles, Gurman notes Apple’s Vision Products Group feels the "lack of focus and clear direction" is dampening morale. Innovation can indeed be exasperating, but perseverance usually pays dividends.

For more info: Apple’s microLED efforts, Canceled AR glasses plans.

Apple Vision Pro Celbrates Its First Anniversary!

Recently, my social media feeds were abuzz with Apple enthusiasts wishing the Vision Pro a happy birthday. It gave me an excuse to jump on the bandwagon and say: Happy Birthday, Vision Pro! Thanks for shaking things up in the XR sphere and sparking a race to innovate among competitors!

News Worth a Mention

VRChat’s New Age Verification Feature

VRChat has rolled out an age verification system for its VRC+ subscribers. Users can confirm their age via a service called Persona, by providing an official ID or a facial photo. It’s optional but grants entry to age-restricted areas and an adult verification badge. As the first major social VR platform to introduce this, I’m keen to see the outcome. Many users have long lamented over disruptive kids, but privacy concerns over sharing data with a third-party service remain a hurdle. Some creators might eagerly limit their content to verified adults, but adoption remains uncertain.

For more info: VRChat’s new feature.

XReal One Versus Apple Vision Pro

I’ve usually been skeptical of comparing different devices, yet Scott Stein’s XReal One review got me reconsidering. These glasses excel at movie-viewing with rave reviews backing their virtual display prowess. Considering Apple’s Vision Pro initially positioned itself as a virtual display for users, why not opt for the lightweight, specialized, and cheaper XReal for those singular needs instead of the hefty $3500 Vision Pro? While Vision Pro’s broader scope and brighter display are real differentiators, this question definitely makes you think.

More details: Read more here.

Unveiling of Viture’s Pro XR Glasses

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

Details here: More info.

Logitech Pen: A New Tracking Option for Meta Quest

Unlike the Vive Tracker, the Meta Quest doesn’t have a direct tracking device. Developers typically relied on an extra Quest controller for object tracking, but now there’s a new player on the field: the Logitech MX Ink pen. Recently, I watched two intriguing videos where this pen was used to track various objects with the Meta Quest. What caught my attention was how the Quest can track both controllers and the pen simultaneously. I’m eager to see how creative the community will get with this novel option.

Details: Weapon tracking controller using Logitech Pen, Educational tracking experiments with Logitech Pen.

Haptikos: A Fresh Player in XR Haptics

Sunnyvale and Athens-based Haptikos recently emerged from stealth with a hand exoskeleton prototype. This gear belongs to the Haptik OS ecosystem, which is an integrated toolset of hardware and software, designed to offer realistic finger-tracking and touch sensations. Currently priced at $2500, the team anticipates a significant price drop to $1000 by 2026, putting it competitively lower against existing XR gloves. From my brief encounter with an early prototype at AWE a few months back, I could tell they were on the right track.

Meta’s Crackdown on Leakers

Meta is clamping down on leakers, declaring any employee responsible for leaks will be shown the door. Zuckerberg has lamented over the frequency of leaks, vowing to be less transparent. The kicker? News of these comments was also leaked. Oh, the irony.

More information: Read more.

Merging Quest Passthrough with ChatGPT

A developer known for cracking the best way to access Quest passthrough is planning to integrate the Meta Quest 3’s camera with OpenAI’s GPT-4o. Considering the potential power of merging passthrough with AI capabilities, I’m eagerly anticipating how this will play out.

More information: Read more.

Challenges Loom for VR

The VR world continues to face challenges, highlighted by three recent pieces of news. The pioneering VR MMO, Orbus VR, dating back to 2017, is closing its doors. Meanwhile, Fast Travel Games, a standout studio, is cutting 30 positions due to disappointing 2024 sales. Vertigo Games is offloading its Springboard VR arcade platform to Synthesis VR to streamline operations.

Details: Orbus VR closing, Fast Travel layoffs, Springboard VR sale.

Content Announcements

COLD VR releases February 11
Aces of Thunder, a VR aerial combat game, is gearing up for a 2025 launch on PSVR 2 and PC VR
Demeo to transform into DEMEO X DUNGEONS & DRAGONS: BATTLEMARKED, a standalone experience
Dive into the claustrophobic world of Cave Crave, a spelunking simulation available for preorder at $13
Daisy Ridley stars in Trailblazer: The Untold Story of Mrs. Benz, coming to Quest in March
Beyond Blue: After the Storm, a VR underwater adventure, is now on the Meta Store for $15
Darknet jumps to Quest headsets as Darknet: Remastered, available for $9.99
Craftrium lets users design free-form aquariums via Apple Vision Pro
Celebrate Super Bowl LIX with a Kendrick Lamar experience in Synth Riders, exclusive to Apple Vision Pro
The all-new Farming Simulator VR will hit the Horizon Store on February 28, offering a unique farming experience
Owlchemy Labs offers discounts on Vacation Simulator and Cosmonious High, now priced at $19.99 across major platforms
Ahoy! delivers a compelling narrative journey on the Apple Vision Pro
Upload VR’s XR News Round-Up highlights additional XR stories

For more info: 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.

Content Reviews

Path of Fury: Episode I – Tetsuo’s Tower leaves an impression as a rail-following game providing a good workout veiled under an 80s action trove. Previewed by Road to VR.
StageTime VR looks like a promising karaoke multiplayer experience just getting its feet wet but boasts features like spatial audio that indicate a bright future.

For more: Path of Fury: Episode I – Tetsuo’s Tower, StageTime VR.

Additional News

The VR Games Showcase returns in March, touting its "biggest line-up yet" for XR Games.
Mindshow unveils a virtual animation tool for enterprises.
XR4Europe releases various reports on the XR landscape across European nations.
XR Bootcamp provides a comparative view of smartglasses on the market.
Apparently, the Quest’s 74th version could further worsen its UI, much to everyone’s dismay.
Samsung’s new "Beyond" trademark hints, yet unlikely to name another upcoming headset similarly.
Astronauts speak about how HTC headsets help alleviate loneliness in space.

Learn more: Biggest XR Games lineup, Mindshow’s enterprise tool, XR4Europe reports, XR Bootcamp Smartglasses Comparison, Quest UI changes, Samsung trademark, HTC headset in space.

News from Partners (and Friends)

Google Blocks gets new life as Open Blocks!

The folks at Icosa Foundation, credited with breathing new life into Tilt Brush as Open Brush, have given the same treatment to Google Blocks, the once-abandoned low-poly tool. Now known as Open Blocks, the project uses the source code Google released when it abandoned Blocks. Available now on the Horizon Store and forever open source on GitHub. Additionally, there’s buzz about a successor to Google Poly, called Icosa Gallery.

Learn more: Open Blocks Reddit post, Open Blocks launch.

Some XR Fun

Usually, it’s a cave simulator, yet here’s something that can easily be misinterpreted and is funny.

Donate for Good

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Support The Red Cross in Ukraine.

Thanks always to my wonderful Patreon supporters: (list of names acknowledging each donor).

(Header image by Meta)

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The XR Weekly Update (February 4, 2025): Meta’s Record-Breaking Q4 2024, Apple’s Ongoing AR Glasses Journey, and More!