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

Back in 2021, Varjo, the company known for its high-performance mixed reality headsets for enterprises, made a notable foray into the consumer virtual reality market with the launch of its Aero headset. However, it seems that chapter might be closing, as Varjo shifts its focus more intently toward enterprise solutions centered on training simulations and integrated applications.

In a discussion with Road to VR, Patrick Wyatt, Varjo’s chief product officer, shed some light on the company’s new direction. It turns out training simulators, particularly in sectors like military and aerospace, have been thriving for Varjo. Wyatt noted that the company is now prioritizing crafting robust solutions geared for specific outcomes, as opposed to simply selling headsets and leaving buyers to figure out their proper use.

This approach has led to collaborations with industry giants like Leonardo, a leader in helicopter manufacturing. Together, they’ve developed the Virtual Extended Reality (VxR) helicopter pilot training system, with Varjo’s high-fidelity headsets at its heart. This innovative system has even earned FAA FTD Level 7 Certification, making it the first VR-based training setup to achieve such a high standard.

Varjo’s strategy extends beyond just selling headsets. The company is bolstering its “solutions engineering” capabilities, meaning it works hand-in-hand with customers to tailor and implement solutions powered by Varjo technology. They have introduced variations of their headsets to meet specific client needs, including the XR-4 ‘Focal Edition,’ which boasts auto-focus passthrough cameras for detailed interaction with nearby objects like control panels. There’s also a ‘Secure Edition’ for sensitive environments.

The XR-4’s base model comes with a hefty price tag of $6,000, while the specialized ‘Focal Edition’ and ‘Secure Edition’ cost $10,000 and $14,000, respectively, highlighting their premium positioning.

Wyatt further mentioned Varjo’s commitment to supporting the XR-4 series until 2030, offering companies reassurance that their headsets will remain reliable over time. This long-term support aligns with the company’s move away from consumer products and further into enterprise-tailored solutions.

Initially, the Varjo Aero marked an exploration into the consumer market space, hoping to continue appealing to VR enthusiasts. Yet, when prompted about any successors to the Aero, Wyatt humorously remarked, “Never say never, but we’re definitely charting a different course.”

This pivot is understandable given how enthusiast VR headsets are trending towards smaller, lighter builds, as evidenced by competitors like the Bigscreen Beyond and MeganeX Superlight. Adapting to these shifts would necessitate a fundamental redesign of both Varjo’s optics and overall headset capabilities, which doesn’t align with their current objectives.

Interestingly, Varjo is experiencing an uptick in demand for its headsets and solutions outside the consumer sphere. The company has reported that since launching the XR-4 in early 2024, their military application business has doubled. Moreover, Varjo boasts a presence in 19 of the world’s top 20 defense and aerospace firms and claims 25% of Fortune 100 companies rely on its technology, supported by a workforce surpassing 200 employees.