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

Back in 2021, Varjo made a bold move into the consumer VR market with the Aero headset, a foray that was met with much anticipation. However, the company has recently decided to pivot back towards its original focus on enterprise customers, specifically honing in on training simulations and other specialized applications. As a result, a successor to the Aero isn’t likely anytime soon.

In a chat with Road to VR, Patrick Wyatt, Varjo’s Chief Product Officer, shed light on their current strategy, which is all about creating deeper integrations for specific purposes. There’s a pronounced shift toward training simulations, with an emphasis on military and aeronautical applications. Wyatt mentioned that their goal is no longer just to sell headsets, but to partner with businesses in implementing solutions that can produce tangible outcomes.

Take, for instance, their collaboration with Leonardo, a prominent helicopter manufacturer. Together, they’ve developed the Virtual Extended Reality (VxR) system, an advanced helicopter pilot training platform. The remarkable visual quality of Varjo’s headsets was pivotal in the system achieving the prestigious FAA FTD Level 7 Certification, a first for a VR-based training system.

Varjo’s approach now involves moving beyond merely marketing their headsets off the rack. They’re ramping up their “solutions engineering” department to work side-by-side with clients, devising and executing projects that focus on real-world applications of their technology.

To reinforce this shift, Varjo has been customizing their headsets to better meet common industry requirements. They developed the ‘Focal Edition’ of the XR-4, which incorporates auto-focus passthrough cameras, designed for enhanced interaction with closely situated objects, such as cockpit controls. Moreover, they introduced the ‘Secure Edition’ XR-4, tailored for use in sensitive environments.

These special versions of the XR-4 come at a significant premium over the standard model, which is priced at $6,000. The enhanced editions, with their added capabilities, are tagged at $10,000 and above, with the Secure Edition fetching upwards of $14,000.

Wyatt also announced Varjo’s commitment to supporting their XR-4 series through the next decade, up until 2030. This pledge gives businesses the assurance that their investment in Varjo technology will continue to yield returns.

With Varjo taking a step back from consumer headsets like the Aero, it’s evident they’re channeling their resources into the enterprise arena. Although the Aero was initially aimed at attracting VR enthusiasts, and there had been plans for it to become a series, Wyatt acknowledges that the company is now steering in a different direction. Although they haven’t completely ruled out a follow-up, “never say never” seems to be the unofficial motto.

For VR hobbyists, this might be a letdown, but for Varjo, it’s a strategic refinement. Despite the exceptional visual performance of their headsets, size has always been a challenge. The latest VR market trend leans towards making headsets smaller and lighter, as seen with the likes of Bigscreen Beyond and MeganeX Superlight. To compete in that space would necessitate a major redesign of Varjo’s core technology.

Ultimately, Varjo’s traction outside the consumer market is undeniably growing. Military applications of their headsets have surged, doubling since they introduced the XR-4 in early 2024. The company now employs over 200 people. Impressively, Varjo technology is utilized by 19 of the world’s top 20 defense and aerospace organizations, as well as by a quarter of the Fortune 100 companies.