Varjo Focuses on Training Simulations and Custom Integration; ‘Aero’ Expected to be Its Only Consumer Headset

In 2021, Varjo, a company renowned for its top-tier mixed reality (MR) headsets tailored for enterprise use, ventured into the consumer virtual reality (VR) market with the introduction of the Aero headset. Fast forward to today, however, and it seems Varjo is retracing its steps back to its enterprise roots. The company has declared that its primary focus is now on training simulations and deeper enterprise-focused solutions, making any follow-up to the Aero unlikely.

During a recent conversation with Road to VR, Varjo’s Chief Product Officer, Patrick Wyatt, shed light on the company’s strategic pivot towards enhancing their headsets for specialized applications. Training simulations, particularly within the military and aeronautics sectors, have become key growth areas for Varjo. Wyatt emphasized that their aim has shifted from merely distributing headsets to crafting solutions that deliver tangible results for their enterprise clients.

To illustrate, Varjo has partnered with notable clients like Leonardo, a leading helicopter manufacturer, to develop the Virtual Extended Reality (VxR) pilot training system, where Varjo’s headsets play a crucial role. Thanks to the impressive visual clarity of these headsets, the system has secured FAA FTD Level 7 Certification, which is a high commendation in the realm of flight simulators. Notably, Varjo heralds this as the first VR-based training system to achieve such a certification.

Transitioning away from simply selling headsets off-the-shelf, Varjo is expanding its “solutions engineering” capabilities. This shift involves working directly alongside clients to dream up and put into practice innovative solutions that harness Varjo’s tech to solve complex problems. To back up this business model, Varjo has formulated specific versions of their headsets to cater to widespread needs. For instance, the XR-4 ‘Focal Edition’ offers an auto-focus feature for passthrough cameras, making it particularly suitable for close-range interactions such as operating flight controls. Then there’s the XR-4 ‘Secure Edition,’ crafted for environments where security is paramount.

These specialized versions come with a steep price compared to the standard XR-4 model, which starts at $6,000. The Focal Edition carries a $10,000 price tag, and the Secure Edition goes for $14,000 and up. Additionally, Wyatt confirmed Varjo’s longstanding pledge to support its XR-4 series through to 2030, reassuring enterprises of the long-term reliability of their headsets.

With this clear shift towards long-term support and bespoke client solutions, Varjo’s departure from the high-end consumer headset market is unmistakable. The Aero, which hit the market in 2021, seemed destined to herald a new line aimed at VR aficionados. Yet, when asked about a sequel to the Aero, Wyatt candidly told Road to VR, “No one is gonna say ‘never’ but we’re going more and more in the other direction.”

While this may disappoint VR enthusiasts hoping for a new consumer-centric device from Varjo, the decision makes strategic sense for the company. Despite their reputation for exceptional visual clarity, Varjo’s headsets are traditionally bulkier—a factor now critical to VR enthusiasts who favor lightweight designs like the recent Bigscreen Beyond and MeganeX Superlight, both compact models far from Varjo’s style. Seeking to conquer this niche would require Varjo to overhaul its technology and design philosophy substantially.

Varjo reports increasing interest in its headsets and solutions from sectors outside the consumer market. In fact, Wyatt mentioned that the company has seen its revenue from military applications double ever since the XR-4 launched in early 2024.

Today, Varjo employs over 200 individuals and boasts that its technology is deployed across 19 of the 20 top global defense and aerospace firms, as well as 25% of companies on the Fortune 100 list.