Varjo Focuses on Training Simulations and Custom Integrations, ‘Aero’ Potentially its Only Consumer Headset

In 2021, Varjo, known for its high-end mixed reality (MR) headsets catering primarily to enterprises, stepped into the consumer VR market with the launch of the Aero headset. But now, Varjo has shifted its focus, concentrating more on training simulations and specialized integrations that meet the needs of its enterprise clients. As a result, the company is unlikely to produce a successor to the Aero headset.

In a conversation with Road to VR, Varjo’s chief product officer, Patrick Wyatt, shed light on the company’s current strategy, which is centered around deepening the integration of their headsets for specific applications. Wyatt highlighted that training simulators—particularly those used in military and aviation sectors—have become a significant growth area for Varjo. Rather than just selling headsets, Varjo is now invested in offering holistic solutions that prioritize outcomes.

This strategic shift has meant collaborating closely with companies such as Leonardo, a prominent helicopter manufacturer, to develop the Virtual Extended Reality (VxR) helicopter pilot training system where Varjo’s headsets play an integral role. Thanks to the superior visual clarity of Varjo’s headsets, this system has received FAA FTD Level 7 Certification, marking it as a top-tier flight simulator. Varjo proudly asserts that this is the first VR-based training system to attain such a high level of certification.

By moving beyond off-the-shelf headset sales, Varjo is strengthening its “solutions engineering” services. This involves directly working with clients to design and implement custom solutions that leverage Varjo’s technology to tackle existing challenges. To demonstrate its commitment to this new business model, Varjo has developed specialized headset versions catering to widespread needs. The introduction of the ‘Focal Edition’ of the XR-4, for example, features auto-focus capabilities for its passthrough cameras, making it particularly effective for interactions with nearby objects, such as flight instruments. Additionally, the ‘Secure Edition’ is tailored for use in classified environments.

These specialized XR-4 versions come at a premium compared to the base model, which starts at $6,000. The XR-4 Focal Edition is priced at $10,000, while the Secure Edition can cost upwards of $14,000.

Wyatt also shared Varjo’s long-term commitment to its XR-4 headset line, ensuring support through 2030. This pledge offers companies assurance that their investments in Varjo’s headsets will remain viable for years to come.

With this focus on bespoke solutions and extended headset support, Varjo appears to be stepping away from the high-end consumer headset market. The Aero, launched in 2021, was Varjo’s first foray into consumer products, and it seems it might be the last. Despite the company’s initial plans to develop a series of headsets targeting VR enthusiasts, Wyatt suggests a follow-up to the Aero is unlikely, saying to Road to VR, “No one is gonna say ‘never’ but we’re going more and more in the other direction.”

For VR enthusiasts, this news might be disappointing. However, it seems a wise move for Varjo. While their headsets are celebrated for outstanding visual clarity, their size has typically been a drawback. The enthusiast VR headset market has seen a trend towards reducing size and weight—exemplified by models like Bigscreen Beyond and MeganeX Superlight, which are considerably smaller than any Varjo headset. To succeed in this market would require Varjo to rethink its headset design and capabilities fundamentally.

Varjo reports a growing demand for its specialized headsets and solutions outside the consumer sphere. The company notes that business from military applications has doubled since the XR-4’s debut in early 2024. With more than 200 employees, Varjo boasts that its technology is employed by 19 of the 20 largest global defense and aerospace organizations, along with a quarter of Fortune 100 companies.