Varjo Shifts Focus to Training Simulations and Custom Integrations; ‘Aero’ May Be Its Only Consumer Headset

Back in 2021, Varjo, known for its top-tier enterprise mixed reality headsets, ventured into the consumer VR market with their Aero headset. However, the company’s current trajectory suggests we’re unlikely to see an Aero sequel anytime soon—as they pivot toward training simulations and more integrated enterprise solutions.

In a chat with Road to VR, Patrick Wyatt, Varjo’s chief product officer, shared insights into this strategic shift. They’re honing in on the growing demand for specialized applications of their headsets, particularly in sectors like military and aviation training.

Wyatt highlighted that the training simulation field is rapidly expanding for Varjo, especially in military and aeronautics sectors. They aim to deliver more than just hardware; the goal is to weave their products into comprehensive solutions that generate real value, moving beyond the mere sale of headsets.

A key partnership in their strategy involves Leonardo, a major player in helicopter manufacturing. Together, they’re crafting the Virtual Extended Reality (VxR) helicopter pilot training system, with Varjo headsets at its heart. Thanks in large part to the remarkable visual clarity provided by Varjo’s equipment, this system has achieved FAA FTD Level 7 Certification, which is the pinnacle for flight simulators. It’s being touted as the first VR-based training system to hit such heights.

Transitioning from just selling headsets, Varjo is expanding its “solutions engineering” efforts. This means they’re working directly with clients to tailor solutions that harness their headsets to tackle existing hurdles, offering a hands-on approach to problem-solving.

To underline their commitment to this business model, Varjo has been developing tailored versions of its headsets. One example is the ‘Focal Edition’ of the XR-4, which features autofocus on the passthrough cameras, a valuable improvement for tasks involving proximity to objects like flight instruments. There’s also the ‘Secure Edition,’ designed for use in sensitive environments.

While these specialized headsets come at a premium—the XR-4 base model costs $6,000, whereas the Focal and Secure Editions can be priced at $10,000 and $14,000, respectively—they promise tailored functionality and system integration.

Looking ahead, Wyatt stated that Varjo pledges to maintain support for the XR-4 series until 2030. This assurance aims to provide businesses with the confidence that their investment in Varjo’s technology will remain valuable over time.

Reflecting on their current direction, Varjo appears to be stepping back from creating high-end consumer VR products. The Aero headset, launched in 2021, marked a significant but solitary foray into consumer markets. Although it was initially designed with VR enthusiasts in mind, Varjo’s priorities have clearly shifted. “We’re headed more and more in the opposite direction,” Wyatt mentioned regarding prospects of an Aero successor.

This shift might disappoint VR enthusiasts but seems a smart move for Varjo. Their headsets are renowned for visual clarity but not for being particularly compact. The trend in consumer VR is gravitating towards slimmer and lighter designs, as seen with newer models like the Bigscreen Beyond and the MeganeX Superlight. Adapting to this trend would require substantial redesign and reengineering of Varjo’s products.

Instead, Varjo is witnessing an upward trajectory in demand from non-consumer sectors. Wyatt noted a doubling in business from military applications since the XR-4 launched early in 2024. The company’s footprint is significant: they employ over 200 people, and their technology is embraced by 19 of the world’s 20 largest defense and aerospace firms, as well as 25% of Fortune 100 companies. Such a strong presence in the corporate and defense spheres establishes Varjo as a formidable force in specialized VR applications, steering away from consumer-land.