Varjo is known for its high-end enterprise mixed reality headsets, and in 2021, it ventured into the consumer VR market with the launch of the Aero headset. However, it now seems that Varjo’s main focus has shifted back to its roots—concentrating on training simulations and deeper enterprise integrations, which suggests we might not see a successor to the Aero anytime soon.
In a chat with Road to VR, Patrick Wyatt, Varjo’s chief product officer, delved into this strategic pivot. He highlighted that the company is homing in on specific use-cases, especially in training simulations within military and aeronautical fields. Instead of simply selling headsets and leaving buyers to fend for themselves, Varjo is emphasizing on delivering value through comprehensive solutions.
This approach has led Varjo to collaborate closely with industry giants like Leonardo, a leading helicopter producer, to develop the Virtual Extended Reality (VxR) system for pilot training. Thanks to Varjo’s superior visual quality, their system earned the FAA FTD Level 7 Certification, setting a precedent as the first VR-based training system to achieve this level of certification.
Moving beyond mere headset sales, Varjo is ramping up its “solutions engineering” efforts. This essentially means working hand-in-hand with clients to tailor solutions that effectively utilize Varjo’s headsets to meet unique challenges.
To underscore its commitment to this new business model, Varjo has created specific headset variations to address particular needs. For instance, the ‘Focal Edition’ of the XR-4 features auto-focus capabilities in its passthrough cameras, enhancing the experience with close-up interactions, like managing flight controls. Additionally, there’s a ‘Secure Edition’ designed for sensitive environments, built with discretion in mind.
While these custom versions come with a significant price tag compared to the standard XR-4, which starts at $6,000, the Focal Edition is priced at $10,000, and the Secure Edition can go upward of $14,000.
Wyatt assures that Varjo is committed to supporting the XR-4 series until 2030, offering a dependable long-term solution for businesses relying on its technology.
With this shift towards sustaining headset support and crafting custom solutions, Varjo is clearly steering away from the consumer-oriented high-end headsets.
The Varjo Aero marked the company’s debut in the consumer market in 2021, and it might well be their only foray. Initially, there were hopes for the Aero to become a recurring series catering to VR enthusiasts. But when quizzed about a successor, Wyatt hinted to Road to VR that while it’s not a complete “never,” their direction is strongly veering away from consumer models.
While this might disappoint VR fans, it’s arguably a smart move for Varjo. Their headsets, although praised for visual brilliance, are bulkier compared to new consumer-focused models. The latest headsets, such as Bigscreen Beyond and MeganeX Superlight, are much smaller and lighter. Matching this trend would require a complete overhaul of Varjo’s technology.
Instead, Varjo is witnessing increased demand outside the consumer realm, particularly in military applications, with their business volume doubling since the XR-4’s launch in early 2024.
Varjo proudly mentions its workforce of over 200 people, noting that their technology is now employed by 19 of the world’s 20 leading defense and aerospace firms, and also by a quarter of the Fortune 100 companies.