Published on: December 20, 2024 / Update from: December 20, 2024 - Author: Konrad Wolfenstein
Mixed Reality Reloaded: Why Google and Co. are back in the game
AR and VR industry: A renaissance?
It seems like the AR and VR industry is on the rise again. Many observers are looking forward to seeing how the market will develop now that Meta, Google, Apple and manufacturers like Pico are more seriously vying for users' favor. An enthusiastic AR/VR enthusiast recently put it aptly: “It's good that Google is getting involved again and isn't suddenly leaving the field to Meta and Apple without a fight.” This statement illustrates the dynamics of the current situation. While Meta has had a significant influence on the market in recent years with the Quest series, Google was rather cautious when it came to AR and VR after initial, sometimes failed attempts - just think of Google Glass or Daydream. Now, however, the cards seem to be shuffling again.
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Future up close: What's really behind XR, VR, AR and MR
- XR (Extended Reality): A collective term for all technologies that extend or completely replace physical reality. XR includes virtual reality (VR), augmented reality (AR) and mixed reality (MR).
- VR (Virtual Reality): A technology that places the user in a completely virtual, computer-generated environment. The real world is completely hidden and the user can interact in this artificial environment.
- AR (Augmented Reality): This is where the real world is expanded to include digital information or objects. Virtual elements are overlaid on the actual environment so that the user sees both the real world and additional information at the same time.
- MR (Mixed Reality): A combination of VR and AR where virtual and real objects can interact with each other in real time. In mixed reality, the physical and digital worlds merge into a new environment in which both coexist and communicate.
Google's return to the XR world: hope or skepticism?
The central question is: Will Google really be able to gain a foothold in this segment with a new platform called Android XR or other innovative approaches? Skepticism is certainly warranted. One experienced observer commented: “I don't expect it to work particularly well. Google's VR and AR stuff is still a disaster even after ten years." This harsh criticism reflects a widespread opinion that Google has so far failed to build a convincing XR ecosystem that goes beyond technical gadgets and could also set standards in terms of software, usability and user experience.
However, one should not forget that Google has so far only been looking for possible collaborations with hardware manufacturers and operating system integrations in the background. A new attempt at XR could now turn out differently - especially if Google manages to bring developers and hardware partners together to create a more sophisticated, stable and engaging user experience. It is not impossible that Android XR will serve as a solid foundation for new headsets in the future, especially when it comes to integrating well-known Android apps into virtual and augmented environments. Smooth compatibility with the familiar Android world would be a strong argument for many users.
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Meta's strategy: The Quest 3 and Quest 3S as impulse generators
Another big topic is Meta's offense. With the Quest 2, the company launched an affordable and relatively accessible headset early on, which was able to attract numerous users thanks to its independent ecosystem. Now the focus is on Quest 3 and Quest 3S. These models should not only score points in terms of hardware performance, resolution and wearing comfort, but also through competitive prices. An expert in the scene remarked: “If they're any good, then there could be a breath of fresh air because they're really attractive in terms of price.” It's precisely this price-performance ratio that could be crucial in attracting even more people into the virtual world and spread the technology further.
The Meta Quest 3 is considered a high-end solution for demanding VR and AR experiences. It has a noticeably higher resolution than the previous generation and scores with a significantly slimmer design. In addition, a powerful XR chipset should ensure smooth displays and short response times. There are also advanced mixed reality functions that allow virtual content to merge almost seamlessly with the real environment. The interesting counterpart is the Meta Quest 3S, which is said to retain the same processor as the Quest 3 but offers slightly slimmed down specifications. This means it can be offered at a significantly lower price and appeals to users who want to immerse themselves in the XR world but don't want to spend a fortune right away. A kind of ecosystem is being created here with different price and quality levels that could be interesting for different target groups.
Apple enters the playing field: The Vision Pro as a game changer?
In addition to Meta and Google, Apple has come into the spotlight with its Vision Pro. These AR/VR glasses rely on a high-resolution display, intuitive gesture control and perfect integration into the existing Apple ecosystem. Although the device is in a very high price segment and is therefore likely to be a niche product for early adopters and professional users for the time being, Apple's entry into this market could be seen as a turning point. When Apple gets seriously involved, new standards usually emerge that other manufacturers follow. This puts competition under pressure, but also ensures innovation. Users who are already deeply rooted in the Apple world may find themselves drawn to the Vision Pro sooner or later, especially if developers bring convincing applications to the market that demonstrate the added value of AR and VR in everyday life.
Meta's role as a platform provider and the relevance of Horizon OS
Another area of tension is the role of Meta as a possible platform provider. It is often heard that Meta is planning to license its own operating system – often referred to as “Horizon OS” – to other manufacturers. So far, Meta has relied on its own Android-based ecosystem for its headsets, but if it manages to open up this platform, it could revitalize the market. Manufacturers like Pico are the focus here. Their own operating system is currently considered to be poorly developed and does not offer users a seamless, intuitive experience. A move to Horizon OS or a future Android XR solution would potentially allow manufacturers like Pico to offer higher quality products without having to bear the burden of complex system development themselves.
Software as a vulnerability and the importance of a unified ecosystem
Especially in the Pico case, the software has always been a weak point. An industry expert said: “Their OS and software are also a catastrophe.” This statement may sound drastic, but it reflects a common problem: Many AR/VR headsets suffer less from the hardware than from a lack of software optimization and immature user guidance and missing content. If Meta now opens up its operating system and creates a platform on which several manufacturers can build, a broader range of hardware would be created that is based on the same technical basis. It would then be easier for developers to create applications for an ecosystem that reaches many users. This in turn attracts more customers as the selection of apps, games, educational applications or professional tools grows. The result could be a self-reinforcing cycle of supply and demand that drives the market as a whole.
Google's possible role with Android XR
The same applies to Google's future Android XR. If a similar strategy is successful, Android XR could serve as a universal basis on which different manufacturers develop their hardware. This modular approach fundamentally fits the Android philosophy, which has been successful in the smartphone sector for years: manufacturers use Android as the basis for their devices, easily adapt the system and differentiate themselves through hardware, design and additional functions. Applied to the XR sector, this could mean that in the future a large number of headsets - from inexpensive entry-level devices to expensive professional solutions - will be based on the same basic structure. This would provide users with a more consistent experience and reduce market fragmentation, ultimately increasing the adoption of VR and AR.
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The current situation and possible market developments
The current situation suggests that we are at an important point. The technologies for VR and AR are no longer pure dreams of the future, but are slowly but surely pushing into the mass market. With the Quest line, Meta has already shown that comparatively inexpensive yet powerful devices can appeal to a broader audience. With the Vision Pro, Apple is relying on a high-end product that could set standards in terms of quality and integration. Google is in a phase of new beginnings to potentially create a standard with Android XR that will ensure long-term stability and diversity.
One observer summed up the essence of the current development: “We'll get the glasses and try them out.” This sentence expresses not only curiosity, but also a certain calmness. The market is developing and you want to keep your finger on the pulse. But with curiosity comes the desire for real improvements: more content, better software, greater selection - in short: an ecosystem that works. Vendors like Pico, which have previously struggled with unfinished software, could benefit from an open Horizon OS or a mature Android XR environment. “Next I'm looking forward to the Meta Quest 3 and 3S,” added the same observer, “if they're any good, then there could be a breath of fresh air again.” This shows that above all the immediate next step, i.e. the Products of the next generation serve as a yardstick.
The competition and the vision of a mature XR technology
The competition between Meta, Google, Apple and others like Pico is driven primarily by one basic idea: AR/VR technology should finally grow up. It should find its place in everyday life, in education, in entertainment, in work and in art. This not only requires impressive hardware, but above all a sophisticated software ecosystem that is easily accessible, stable and inspiring for users. The new headsets and platforms coming to market in the coming years will show whether the industry can make this leap. The chances are good that AR and VR will find their way into the mainstream step by step - be it through Meta's OS offensive, Apple's premium strategy, Google's Android XR or through other manufacturers jumping on this bandwagon. One thing is certain: the field is changing, and the next few years will be crucial in determining whether the vision of an immersive, connected and user-friendly XR world is truly fulfilled.
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