Varjo Focuses on Training Simulations and Custom Integration, ‘Aero’ Poised to Be Its Sole Consumer Headset

In 2021, Varjo, known for its elite enterprise MR (Mixed Reality) headsets, ventured into the consumer VR scene with the Aero headset. However, the company is now honing its efforts on training simulations and more profound integrations tailored to enterprise needs, implying that a successor to the Aero headset is unlikely.

In a conversation with Road to VR, Varjo’s chief product officer, Patrick Wyatt, shed light on the company’s current focus: deeper and more specific integrations of their headsets. According to Wyatt, there’s a growing interest in training simulations, particularly within the military and aeronautics realms. Varjo aims to move beyond merely selling headsets to supporting customers in effectively utilizing these devices to achieve tangible outcomes.

This shift has seen Varjo collaborating with major players like Leonardo, a prominent helicopter manufacturer. Together, they’ve developed the Virtual Extended Reality (VxR) training system for helicopter pilots, with Varjo’s headsets being integral to this setup. Owing to the high-quality visuals provided by Varjo’s headsets, this system has received FAA FTD Level 7 Certification, marking it as the top-tier flight simulator system. It’s touted as the inaugural VR-based training system to attain this certification level.

Moving away from off-the-shelf sales, Varjo is enhancing its “solutions engineering” capabilities. This involves working closely with clients to design and implement custom solutions using Varjo’s headsets. To support this business model, Varjo has developed headset versions that cater to specific requirements. For instance, the ‘Focal Edition’ of the XR-4 includes auto-focus passthrough cameras, improving its utility for interactions with close-range objects like flight controls. Then there’s the ‘Secure Edition’, designed for use in “classified environments.”

These specialized versions don’t come cheap. While the XR-4 starts at $6,000, the Focal Edition is priced at $10,000, and the Secure Edition might set buyers back $14,000 or more.

Varjo is also making a long-term commitment to its XR-4 headset series, pledging support until 2030. This assurance gives companies confidence that the technology will remain effective over the years.

With this strategic shift, it’s evident that Varjo is veering away from the high-end consumer headset market. The Aero, launched in 2021, appeared to be the company’s only foray into this territory. Initially, Varjo hoped the Aero would evolve into an ongoing series for VR enthusiasts. When questioned about a follow-up to Aero, Wyatt indicated that while never say never, their trajectory is decisively towards enterprise solutions.

Though disappointing for VR enthusiasts, this pivot seems prudent for Varjo. Their headsets excel in visual clarity, but size has never been a strong point. The current trend in enthusiast headsets is toward compactness, as seen in models like Bigscreen Beyond and MeganeX Superlight, far smaller than any Varjo offering. Adapting to these consumer-oriented demands would require a fundamental overhaul of Varjo’s design and technology approach.

Varjo is witnessing increasing demand for its headsets and solutions beyond individual consumers. The company reports that its business volume from military applications has doubled since the XR-4’s launch in early 2024. It employs over 200 individuals, with its technology utilized by 19 of the 20 largest global defense and aerospace organizations, along with a quarter of Fortune 100 companies.