🕶️ Meta’s Plans to change VR forever

Good morning!

Just a few days ago, Meta dropped a massive announcement that has so many sides to it… This is not your typical announcement of hardware or software releases, but rather a complete overhaul of how Meta plans to operate its VR ecosystem.

Today’s Topics:

• 🌐 Meta's Vision: The Microsoft of XR Headsets 

• 📉 Apple Slashes Vision Pro Production Amid Cooling Demand

Reading time: 3min

🌐 Meta's Vision: The Microsoft of XR Headsets 

Meta is setting the stage to become the Microsoft of the headset world by licensing its newly named Horizon OS to major hardware manufacturers like Lenovo and Asus. This strategic pivot toward an open ecosystem mirrors Microsoft's early strategy with Windows in the PC market.

The Details:

• Meta is now licensing Horizon OS, aiming to replicate the success Microsoft saw with Windows. This includes a special partnership for a gaming-focused Quest headset co-branded with Xbox 🕹️.

• Meta is enhancing its platform's openness by promoting alternative app stores 🛒 like the experimental App Lab and inviting Google to integrate the Play Store within Horizon OS 📱.

• Horizon OS isn't just about hardware compatibility; it's also about expanding Meta's social layer, Horizon, a 3D social network platform💬. Meta plans to monetize this through ads and commerce, aiming to make Horizon as ubiquitous online as social media platforms 💼.

• All devices running Horizon OS will need to use Qualcomm chips, ensuring a unified hardware standard across the ecosystem 🔧.

Our Thoughts: Despite the potential dilution of hardware sales, Meta’s shift towards a software-centric revenue model, similar to the gaming console business, underscores a strategic long-term vision 🎯. By opening its platform, Meta stands to gain a lot from increased content distribution across a wider array of devices while also setting the stage for a more robust and diversified ecosystem that could attract more developers and users alike 🌍👥.

As the VR industry evolves, Meta's strategy of embracing openness, much like Android did with mobile OS, could potentially democratize virtual reality technology, making it more accessible and integrated into everyday technology use 📈🤖. This is a bold gamble that could redefine Meta's trajectory and significantly impact the broader landscape of XR.

To get a better understanding of Meta’s new plan read more here.

📉 Apple Slashes Vision Pro Production Amid Cooling Demand

Apple is reportedly reducing production forecasts for its Vision Pro headset following lower-than-expected demand. Despite its impressive technology, the $3,500 price tag may be deterring potential buyers, leading Apple to rethink its strategy for future mixed reality devices.

The Details:

• Apple analyst Ming-Chi Kuo reports that the company has lowered its 2024 shipment targets from an expected 700,000-800,000 units to just 400,000-450,000 📉.

• Initially performing well in the US, demand has since fallen sharply, prompting Apple to adopt a more conservative approach internationally 🌍.

• With the current model's tepid reception, plans for a next-generation, more affordable mixed reality headset might be delayed beyond 2025 or reconsidered entirely ⏳.

• A continued slump in Vision Pro sales could affect the broader VR and AR markets, particularly impacting the production of specialized components like Micro OLED displays 🔧.

Our Thoughts: Apple's struggle with the Vision Pro highlights the challenges of introducing high-end technology at premium prices in a nascent market. The company's readjustment suggests a cautious approach to its VR/AR ambitions, possibly waiting for consumer interest to catch up with its technological advancements 🤔. As competitors like Meta and Google aim to create more open and accessible platforms, Apple's next moves will be crucial in maintaining its influence in the emerging mixed reality landscape 🚀🕶️.

In Other XR News

• After years, Snap is finally going to the moon after their Q1 revenue grew faster than anticipated, 21% YoY to $1.195 billion.

• Meta's Head Of AR Glasses Hardware Claims They're As Mindblowing As The Original Oculus Rift.

• Meta's AR/VR Division Sees 30% Quarterly Revenue Growth "Driven By Quest Headset Sales".