Varjo Focuses on Training Simulations and Custom Integrations; ‘Aero’ Expected to be Its Only Consumer Headset

In 2021, Varjo, known for creating premium mixed reality headsets for enterprise use, ventured into the consumer VR space with the Aero headset. However, the company’s sights are now set firmly on the enterprise sector, specifically focusing on training simulations and customized integrations. As a result, it seems the Aero won’t be getting a sequel anytime soon.

Patrick Wyatt, Varjo’s Chief Product Officer, chatted with Road to VR about this strategic pivot. Their new focus zeroes in on developing their headsets for specific enterprise needs, particularly in training simulators for military and aeronautics. Wyatt explained that the aim is to provide comprehensive solutions rather than just selling headsets without guidance on their effective usage.

A key example of this approach is their collaboration with Leonardo, a leading helicopter manufacturer. Together, they developed the Virtual Extended Reality (VxR) helicopter pilot training system, where Varjo’s headsets play a central role. The system’s exceptional visual quality helped it secure FAA FTD Level 7 Certification, a significant achievement Varjo touts as the first VR-based training system to receive such status.

Shifting from merely offering headsets off-the-shelf, Varjo is enhancing its “solutions engineering” capabilities. This involves working closely with clients to design and implement solutions that solve particular challenges with the aid of Varjo technology. To back their dedication to this model, Varjo has tailored versions of its headsets to meet specific demands, like the XR-4 Focal Edition, which introduces auto-focus for its passthrough cameras, enhancing interactions with nearby objects. There’s also the XR-4 Secure Edition, aimed at classified environments.

These specialized headsets come with a hefty price tag compared to the standard $6,000 XR-4. The Focal Edition costs around $10,000, while the Secure Edition can exceed $14,000. Wyatt also reassured that the XR-4 series will be supported until 2030, offering enterprises long-term reliability.

The company is evidently steering away from the high-end consumer market to focus on custom enterprise solutions. Their consumer experiment with the Varjo Aero back in 2021, which was hoped to spawn a series for VR enthusiasts, seems to have concluded without expansion. When probed about future Aero models, Wyatt hinted that it’s unlikely, as Varjo is leaning towards enterprise ventures.

For VR enthusiasts, this shift might be disheartening, yet, it appears to be a wise business move. While Varjo headsets are renowned for their stunning visuals, they have not been the most compact options. The consumer VR trend has moved towards smaller, lighter designs—something Varjo’s current tech isn’t optimized for. Adapting to these consumer trends would demand a significant overhaul of their current products.

Outside consumer interests, demand for Varjo headsets in professional domains is growing. They reported a doubling in military application partnerships since the launch of XR-4 at the start of 2024. Varjo employs over 200 staff members, and their technology is utilized by 19 of the world’s top 20 defense and aerospace organizations, as well as 25% of Fortune 100 companies.