Back in 2021, Varjo ventured into the consumer VR scene with its Aero headset release. But now, it seems the company is pivoting away from catering to VR enthusiasts and putting more energy into developing training simulations and solutions tailored for enterprise users, making it doubtful we’ll see a direct successor to the Aero.
In a chat with Road to VR, Patrick Wyatt, Varjo’s chief product officer, opened up about this shift. He highlighted how Varjo is zeroing in on integrating their technology into specific industries. The focus is shifting from just selling headsets to creating comprehensive solutions, particularly in the realms of military and aerospace, where training simulations are experiencing a boom.
A case in point of this niche focus is their collaboration with helicopter giant Leonardo, developing the Virtual Extended Reality (VxR) pilot training system. Thanks in part to the stellar visual fidelity of Varjo’s headsets, this system has earned FAA FTD Level 7 Certification. This marks it as the very first VR-based training system to reach such a credibility level in flight simulators.
Varjo isn’t just selling products off-the-shelf anymore. They are ramping up their “solutions engineering” team, working hand-in-hand with clients to design tailored solutions. An example includes specific versions of their headsets, like the XR-4 ‘Focal Edition’ for better interaction with up-close objects. Meanwhile, the ‘Secure Edition’ targets classified environments.
While the base XR-4 model runs around $6,000, these specialized editions fetch significantly higher prices. The Focal Edition costs about $10,000, and the Secure Edition can exceed $14,000. Despite these hefty prices, Wyatt assures a commitment to the XR-4 series until 2030, assuring clients that these headsets will remain functional well into the future.
Transitioning to a strategy emphasizing long-term support and custom solutions signals a departure from the high-end consumer market for Varjo. The Aero, launched in 2021, was their trial balloon in this consumer space, which now seems destined to be a one-off. Originally, there were hopes for it to become a steady fixture, but Wyatt shared, “No one is gonna say ‘never,’ but we’re heading increasingly in another direction.”
This might disappoint VR enthusiasts, but given the hefty nature of Varjo’s headsets, it makes sense. Consumer models, like Bigscreen Beyond and the MeganeX Superlight, are getting noticeably smaller and lighter, a challenge that Varjo’s comparatively larger headsets struggle to meet without a complete overhaul of their design philosophy.
Varjo is witnessing a surge of interest outside the consumer sector, reportedly doubling their business volume in military applications since the XR-4 debuted in early 2024. More impressively, Varjo’s innovative technology is reportedly in use in 19 of the world’s top 20 defense and aerospace organizations and in 25% of the Fortune 100 companies. Through these efforts, Varjo employs over 200 people, proving its substantial footprint in the tech landscape.
