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

In 2021, Varjo, a company known for producing top-tier enterprise mixed reality headsets, decided to venture into the consumer VR market with the introduction of the Aero headset. However, according to the company, they are now refocusing their efforts on specialized training simulations and deepening their integration into enterprise systems. This strategic pivot suggests we probably won’t be seeing a successor to the Aero headset anytime soon.

During a recent interview with Road to VR, Patrick Wyatt, Varjo’s Chief Product Officer, shed light on this shift. He emphasized that the company is now concentrating on the development of headsets tailored for specific use-cases, veering away from merely retailing standalone devices.

In particular, Varjo is seeing significant growth in the field of training simulations, especially within military and aeronautics sectors. Wyatt mentioned that instead of just selling a product and leaving the implementation to the customers, Varjo aims to deliver comprehensive solutions that meet specific needs. This approach has led to collaborations with prominent companies like Leonardo. Together, they’ve developed the Virtual Extended Reality (VxR) pilot training system for helicopters, where Varjo’s headsets play an essential role. Thanks to the exceptional visual quality of these headsets, this system has earned the FAA’s FTD Level 7 Certification, marking a first for a VR-based training setup in achieving such a prestigious level.

Shifting from marketing off-the-shelf products, Varjo is expanding its “solutions engineering” capabilities. This approach involves working directly with clients to craft tailor-made solutions that leverage the power of Varjo’s headsets. In recent years, to reinforce this business model, the company has introduced versions of its headsets to cater to common professional needs. For example, the XR-4’s ‘Focal Edition’ features an auto-focus mechanism for its passthrough cameras, making it adept for close-proximity tasks such as examining flight controls. Meanwhile, the ‘Secure Edition’ targets environments that require high security.

These specialized headsets, however, come at a premium. While the base model of the XR-4 is available for a cool $6,000, the Focal Edition jumps to $10,000. The Secure Edition sees an even heftier increase, priced at $14,000 or more.

Wyatt confirmed that Varjo is committed to supporting the XR-4 headset line through to 2030. This assurance provides companies with the confidence that their technology investment will have longevity and stability.

With Varjo’s evident shift toward long-term support and customized solutions, it appears the firm is stepping away from the high-end consumer headset market.

The Aero headset, launched in 2021, represented Varjo’s initial—and perhaps final—exploration into consumer territory. Initially envisioned as a product line for VR enthusiasts, the potential continuation of the Aero series has been curtailed. As Wyatt shared with Road to VR, it’s not entirely out of the question for the future, but the company is currently moving in a different direction.

Although this shift might disappoint some VR aficionados, it is likely a wise decision for Varjo. Despite their stellar visual clarity, Varjo’s headsets have struggled in terms of size—a critical factor as consumer headsets become increasingly compact. Newer models like Bigscreen Beyond and MeganeX Superlight are noticeably smaller compared to Varjo’s offerings. Entering this competitive market would require a complete overhaul of Varjo’s hardware approach.

Varjo reports a growing business demand for their headsets outside the consumer space, particularly in the military sector, where they’ve seen their business volume double since the XR-4 series debuted in early 2024.

Moreover, Varjo currently employs over 200 professionals, and their technology is utilized by 19 of the 20 leading global defense and aerospace organizations, as well as 25% of Fortune 100 companies. This impressive footprint underscores Varjo’s stronghold in industry sectors that value specialization and high-quality solutions.