This week saw some significant news in the world of XR (Extended Reality) technology from big players in the industry. Meta Platforms, Microsoft, and Magic Leap all made headlines with announcements that will impact the future of XR technology.
Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, released its Q1 earnings report on Wednesday, revealing a massive loss of revenue for its Reality Labs division. The report noted a 51% drop in revenues, primarily due to lower sales of its Oculus Quest 2 VR headset. This decline poses a significant challenge to the company’s metaverse ambitions and increased competition from other VR and AR companies such as Sony and Apple.
Meanwhile, Microsoft’s attempt to acquire Activision Blizzard for $69 billion to provide the building blocks for its Metaverse has been blocked by the UK Competition and Markets Authority (CMA). The CMA believes that the acquisition poses a threat to competition in the cloud gaming industry, with Microsoft potentially shutting out competitors by only featuring famous games like Call of Duty on its Games Pass digital application storefront. The CMA stated that the acquisition could establish a strong position for Microsoft in the rapidly expanding cloud gaming market, risking undermining the innovation essential for growth in the cloud gaming market.
Finally, Magic Leap announced increased compatibility with OpenXR this week, reaffirming its commitment to building an open XR ecosystem. As the most immersive AR device on the leading XR industry standard API, Magic Leap aims to support businesses and developers across all industry sectors with greater choice and faster innovation in an increasingly dynamic industry.
Overall, Q1 reports have provided us with crucial insight into the successes, failures, and goals of many immersive firms in the XR industry. Although some companies faced challenges, such as Meta and Microsoft, others like Magic Leap are working hard to provide cross-platform, interoperable XR solutions that offer accessible tools to developers and users. As the industry continues to evolve and grow, we can expect to see more breakthroughs and exciting developments in the XR world.