Varjo Focuses on Training Simulations and Custom Integrations, ‘Aero’ Expected to be its Sole Consumer Headset

Back in 2021, Varjo, renowned for its premium enterprise-level mixed reality headsets, decided to venture into the consumer VR world with the Aero headset. Fast forward to now, they’ve shifted gears. Varjo’s main emphasis is on training simulations and achieving deep integration for enterprise clients, suggesting that we might not see a sequel to the Aero anytime soon.

During a conversation with Road to VR, Patrick Wyatt, Varjo’s chief product officer, delved into the company’s current strategy, which revolves around crafting in-depth solutions tailored for distinct user needs. For Varjo, the realm of training simulations—particularly in sectors like the military and aeronautics—is flourishing. Wyatt outlined how the firm is channeling its efforts into generating tangible outcomes, beyond merely selling headsets and leaving it up to buyers to discover their utility.

This approach has seen them collaborate closely with major players like Leonardo, an influential helicopter manufacturer. Together, they’ve created the Virtual Extended Reality (VxR) system for pilot training. With Varjo’s headsets being pivotal to the system, their exceptional visual quality has led to the VxR earning the esteemed FAA FTD Level 7 Certification, marking it as the leading category of flight simulators. Varjo proudly labels it the “first-ever VR-based training system to achieve this certification level.”

Breaking away from simple off-the-shelf headset sales, Varjo is bolstering its “solutions engineering” prowess. This essentially means they are now directly partnering with clients to envision and implement solutions that smartly utilize Varjo headsets to address prevailing challenges.

To demonstrate their dedication to this business approach, Varjo has been designing headset variants to tackle typical requirements over recent years. Notable among these is the ‘Focal Edition’ of the XR-4 headset, which includes an auto-focus feature for its passthrough cameras. This is a notable improvement over fixed focal lengths, making it more user-friendly for close-up interactions, such as with flight controllers and displays. Additionally, there’s the ‘Secure Edition’ of the XR-4, targeted at “classified environments.”

Cost-wise, these tailored editions command a significant premium over the XR-4’s starting price of $6,000. The Focal Edition comes at $10,000, while the Secure Edition can reach up to $14,000 or more.

Wyatt shared that Varjo is solidifying its commitment to the XR-4 headset series, pledging support until 2030. This ensures that companies can count on the long-term reliability of these devices.

Changing course towards sustained headset support and crafting custom solutions, it’s clear that Varjo is stepping back from pursuing high-end consumer headsets.

The Aero headset marked Varjo’s initial, perhaps sole, dipping of toes into the consumer market. Initially, there was an anticipation for the Aero to evolve into a lineup that would cater to VR enthusiasts. However, when probed about any follow-up to the Aero, Wyatt indicated to Road to VR, “While we can’t completely rule it out, we’re progressively moving in a different direction.”

Though this may disappoint VR aficionados, it seems a wise route for Varjo. Historically, Varjo headsets have been lauded for their outstanding clarity, yet they’ve never been the lightest in the market. Enthusiast VR headsets of late have been gravitating towards reduced bulk. Models like Bigscreen Beyond and MeganeX Superlight are sleek compared to any Varjo creation. Pursuing this trend would necessitate a comprehensive re-evaluation of the optics and functionality of Varjo’s headsets.

Varjo has observed a heightened demand for its headsets beyond the consumer sphere, reporting to Road to VR that their business volume tied to military applications has doubled since the XR-4 launched at the start of 2024.

In terms of scale, Varjo reports staffing over 200 employees and highlights that their technology is utilized by 19 out of the 20 largest global defense and aerospace companies, not to mention 25% of Fortune 100 businesses.