Back in 2021, Varjo, a company known for its top-tier mixed reality (MR) headsets designed for businesses, ventured into the consumer virtual reality (VR) scene with the Aero headset. However, it seems they may be stepping back from that space to concentrate more on creating solutions tailored to enterprise needs, particularly in training simulations.
In a recent conversation with Road to VR, Patrick Wyatt, Varjo’s chief product officer, shared insights into their new direction. They’re honing in on specific applications, such as simulations for military and aeronautics training. By doing so, Varjo aims to offer end-to-end solutions rather than just leaving clients to navigate how best to use their headsets.
Notably, Varjo has been collaborating with companies like Leonardo, a major name in helicopter manufacturing. Together, they’ve developed the Virtual Extended Reality (VxR) helicopter pilot training system, which integrates Varjo’s headsets. Thanks to the headsets’ impressive visual quality, the system has been certified at FAA FTD Level 7, the highest standard for flight simulators. It’s claimed to be the first VR-based training system to achieve such a level of certification.
By moving beyond simply selling headsets, Varjo is expanding its “solutions engineering” approach, which involves working directly with clients to come up with custom solutions using their headsets. In line with this shift, they’ve rolled out specialized headset versions. For instance, the ‘Focal Edition’ of the XR-4 features auto-focus passthrough cameras for better use with close-up instruments. There’s also the ‘Secure Edition’, designed for use in classified settings.
However, these specialized headsets come at a premium. While the XR-4 starts at $6,000, the Focal Edition is priced at $10,000, and the Secure Edition can climb to $14,000 or more.
Varjo appears committed to this new path, pledging support for its XR-4 headset series until 2030. This move gives businesses assurance of the product’s longevity and reliability.
It’s clear from these strategic adjustments that Varjo is stepping away from the consumer VR market where the Aero once stood. Although the Aero initially seemed like the start of a consumer-focused line, Wyatt has indicated that a sequel to the Aero might not be on the horizon, suggesting the company is veering towards business-oriented ventures.
While this might be disappointing for VR enthusiasts, it’s strategic for Varjo. Their headsets are known for visual clarity but not for being lightweight or compact, areas where new consumer headsets, like Bigscreen Beyond and MeganeX Superlight, excel. To compete in the enthusiast market with such models would require Varjo to rethink its headset designs fundamentally.
There’s a growing demand for Varjo’s technology beyond consumer use. The company reports that their military application business has surged since they launched the XR-4 in early 2024. With over 200 employees, Varjo boasts that their devices are employed by 19 of the world’s 20 largest defense and aerospace companies, along with 25% of Fortune 100 companies.
