Varjo Focuses on Training Simulations and Custom Integration; ‘Aero’ Possibly its Only Consumer Headset

In 2021, Varjo ventured into the consumer VR market with the launch of the Aero headset. However, it appears the company has decided to shift its focus back to its roots—high-end enterprise products. Varjo is now concentrating on training simulators and other enterprise customer solutions, suggesting a follow-up to the Aero is unlikely.

During a discussion with Road to VR, Varjo’s Chief Product Officer, Patrick Wyatt, outlined the company’s renewed commitment to developing more integrated solutions for specific sectors.

Particularly, Varjo sees significant opportunities in training simulators, especially within the military and aviation industries. Wyatt emphasizes that Varjo is moving beyond merely producing headsets; instead, they are dedicated to creating comprehensive solutions that deliver tangible results. This approach has led to collaborations with major players like Leonardo, a helicopter manufacturing giant. Together, they have developed the Virtual Extended Reality (VxR) system for helicopter pilot training, leveraging Varjo’s advanced visual technology. The system has earned the FAA’s FTD Level 7 Certification, marking it as the first VR-based training setup to reach this level.

Varjo’s strategy involves more than just selling headsets off-the-shelf. The company is expanding its "solutions engineering" capabilities, working closely with clients to tailor their headsets for specific challenges. As proof of this commitment, Varjo has rolled out specialized versions of their headsets. The XR-4, for example, has a ‘Focal Edition’, which includes autofocus for its passthrough cameras, making it ideal for interacting with objects up close, such as flight controls. There’s also the ‘Secure Edition’, designed for secure environments.

Such specialized versions of the XR-4 come at a premium: while the base model is priced at $6,000, the Focal Edition goes for $10,000, and the Secure Edition can exceed $14,000.

Wyatt also mentioned that Varjo plans to support its XR-4 series until 2030, offering companies a sound assurance that their investments will remain viable and supported for years to come.

With this strategic pivot, Varjo is stepping away from the consumer market’s allure. The Aero was their first, and likely last, experiment in the consumer space. Although the Aero series was expected to cater to VR enthusiasts, the evolving priorities have led Varjo to concentrate on other areas of growth.

This shift might dishearten some VR enthusiasts, yet it aligns with the company’s strengths. While Varjo excels in visual clarity, the bulky nature of its headsets stands in contrast to the current trajectory of consumer VR products, which emphasize compact and lightweight designs. Competing in the consumer market would necessitate a fundamental redesign of Varjo’s technology.

Varjo isn’t just pivoting for the sake of it. They are responding to an increasing demand for their headsets outside the consumer realm, revealing that their military application business has doubled since the XR-4’s introduction in early 2024.

The company boasts a workforce of over 200 and claims that its technology serves 19 of the 20 largest defense and aerospace firms worldwide, and a quarter of Fortune 100 companies, signaling a strong foothold in the enterprise sector.