In 2021, Varjo, known for its top-tier mixed reality headsets designed for professional environments, made a splash in the consumer VR market with the Aero headset. However, the company has recently shifted its attention back to enterprise solutions, particularly in the realm of training simulations, indicating that a sequel to the Aero is unlikely.
In a discussion with Road to VR, Patrick Wyatt, the Chief Product Officer at Varjo, shared insights into the company’s strategic pivot. They’re now honing in on crafting more integrated headset solutions tailored to specific industries, notably military and aeronautics training simulations. Wyatt highlighted the company’s commitment to delivering comprehensive solutions that go beyond simply selling hardware, ensuring their headsets meet the precise needs of their partners.
One of their standout collaborations is with Leonardo, a leading helicopter manufacturer. Together, they’ve launched the Virtual Extended Reality (VxR) helicopter pilot training system that prominently features Varjo headsets. This integration has led to the system achieving FAA FTD Level 7 Certification, marking it as the first VR-based training system to earn this prestigious classification.
Varjo isn’t just about providing off-the-shelf solutions; they’re increasingly offering bespoke engineering services. This approach involves working directly with clients to design and deploy systems that effectively utilize Varjo’s technology to tackle specific business challenges. To support this model, Varjo has introduced specialized versions of their XR-4 headset. For example, the ‘Focal Edition’ includes an auto-focus feature tailored for close-up interactions—ideal for flight controls. Meanwhile, the ‘Secure Edition’ caters to environments requiring stringent security standards.
The cost of these tailored versions reflects their specialized nature. While the standard XR-4 model starts at $6,000, the Focal Edition comes with a $10,000 price tag, and the Secure Edition starts at $14,000 or more. Wyatt also mentioned that Varjo is committed to supporting the XR-4 series until at least 2030, offering businesses a long-term assurance of reliability and support.
This strategic decision marks a clear departure from their brief foray into consumer markets. Despite the initial intention for Aero to spearhead a series geared towards VR enthusiasts, Wyatt conceded that they’ve chosen to chart a different course. The Aero might remain a singular consumer product, as Varjo shifts more towards enterprise applications.
For die-hard VR enthusiasts, this might be disappointing, but it’s a pragmatic move for Varjo. Although their headsets boast unrivaled visual clarity, they tend towards the larger side. As consumer VR headsets increasingly focus on compact design, with models like Bigscreen Beyond and the MeganeX Superlight setting new standards, Varjo would face significant challenges in adapting their technology to fit these trends.
Nevertheless, Varjo is thriving beyond the consumer landscape. Wyatt revealed that since the XR-4’s launch in early 2024, demand for Varjo’s offerings, particularly from military sectors, has surged, doubling their business volume. Additionally, with over 200 employees and technology used by 19 out of the 20 largest global defense and aerospace firms, along with 25% of Fortune 100 companies, Varjo’s future appears both challenging and exciting as it leans even further into its enterprise roots.