Varjo Focuses on Training Simulators and Custom Integration; ‘Aero’ May Be Its Only Consumer Headset

In a bold move back in 2021, Varjo, known for crafting top-tier MR headsets for enterprise use, ventured into the consumer VR arena with the Aero headset. However, the company has since pivoted back to its roots, concentrating on training simulations and enhancing integrations tailored for enterprise users, making another consumer headset like the Aero an unlikely prospect.

During a chat with Road to VR, Varjo’s chief product officer, Patrick Wyatt, shed light on this strategic shift. The company is now honing in on integrating its headsets for very specific purposes. Varjo’s focus has largely turned to training simulations, with a strong emphasis on military and aeronautics sectors. As Wyatt explains, the aim now is to deliver comprehensive solutions and outcomes, rather than just handing over headsets and expecting buyers to figure out the rest.

This evolution has seen Varjo collaborating with industry giants such as Leonardo, a leading helicopter manufacturer, to develop the Virtual Extended Reality (VxR) helicopter pilot training system, where Varjo’s headsets are essential. Thanks to the exceptional visual quality of these headsets, the system obtained FAA FTD Level 7 Certification. Varjo takes pride in achieving what they call the “first-ever VR-based training system to reach this certification level.”

Moving away from simply retailing headsets, Varjo is amplifying its “solutions engineering” capabilities. This means closely collaborating with clients to design and implement tailored solutions that leverage Varjo’s innovative headsets to address their specific challenges.

Over the past few years, the company has showcased its commitment to this business model by rolling out versions of its headsets to meet common demands. One such example is the XR-4 Focal Edition, equipped with auto-focus passthrough cameras, ideal for detailed close-ups like flight controls. Then there’s the XR-4 Secure Edition, designed for use in classified settings.

These specialized versions come with a steep price, far exceeding the standard $6,000 tag of the XR-4; the Focal Edition costs $10,000, while the Secure Edition can exceed $14,000.

Wyatt has also revealed Varjo’s dedication to the XR-4 headset series, promising support through 2030. This provides companies with the assurance of long-term reliability.

This focus shift signifies Varjo’s move away from consumer-focused high-end VR headsets. The Aero, released in 2021, appears to have been a one-time foray into the consumer market. Although it initially seemed like the Aero could pave the way for a series catering to VR enthusiasts, Wyatt hints that the chances of a follow-up are slim. “No one is gonna say ‘never’,” Wyatt remarks to Road to VR, “but we’re going more and more in the other direction.”

Though this may disappoint VR enthusiasts, for Varjo, it seems the logical step. While their headsets have led the way in visual clarity, they haven’t been known for a compact build. The VR market now leans more towards smaller, lighter designs. Consider the latest entrants like Bigscreen Beyond and MeganeX Superlight, which are diminutive compared to Varjo’s offerings. For Varjo to compete in this arena, they would need to rethink their headset design from the ground up.

Varjo reports a surge in demand for its headsets and comprehensive solutions beyond the consumer market. They shared with Road to VR that business in military applications has doubled since they launched the XR-4 at the start of 2024.

Additionally, Varjo boasts a workforce of over 200 employees, and their technology is utilized by 19 of the world’s top 20 defense and aerospace companies, alongside 25% of Fortune 100 firms.