Marvin XR

TSS#107: AR Headsets are there with limited shelf life

"HoloLens2 market has suddenly disappeared – have you noticed it?" – this question underscores a significant shift that has taken place in the AR domain. The disappearance of the HoloLens2 from the market spotlight in 2024 has left many industry observers and tech enthusiasts puzzled. Launched as a stable and sophisticated AR headset, the HoloLens2 promised to revolutionize the way we interact with digital information. So what went wrong with HoloLens2 and what happened to the bold future predictions that AR headsets would consume the world population? Let's dive in today to find out more.

The Aha Moment of HoloLen2

The most notable moment in HoloLens2's journey was the announcement of its deal with the US Army, a partnership that initially shook the tech world. This deal highlighted the potential of AR in high-stakes, specialized environments, but it also reinforced the perception that such devices were suited for niche markets rather than everyday use. The fundamental challenge was clear: an expensive AR device like the HoloLens2, no matter how advanced, struggles to gain traction in a market segment that demands affordability and widespread applicability.

Industrial AR Evoution and Competitiveness

The swift emergence of competitors further complicated HoloLens2's position. Apple Vision Pro and Meta Quest3, both of which generated considerable buzz, demonstrated that even a marginally better product could dramatically shift market dynamics. However, the excitement around Apple Vision Pro was short-lived as users began returning the device, frustrated by its high cost and interim nature. This trend highlighted a critical lesson: while technological innovation drives initial interest, practical considerations like cost and usability ultimately determine long-term success.

AR Will Thrive Elsewhere and It's not AR Headsets

The future of AR seems to be gravitating towards more accessible and versatile solutions. Web AR, which operates seamlessly on any smartphone, is poised to outlast dedicated AR headsets like the HoloLens2. The reasoning is straightforward: smartphones are ubiquitous, and Web AR leverages this existing infrastructure, enabling a much larger audience to experience augmented reality without the need for additional investment.

Smartphones – Use It for AR for a Long Time

“Consumers are curious, but so far, no revolution has taken place, XR devices, AR, VR and Mixed Reality (MR) glasses and headsets are still mostly a curiosity,” the Ericsson Consumer Lab report says.

Comparatively, “the smartphone’s place in consumers’ lives is indisputable, it’s nearly an extension of users’ bodies. Its position and how intertwined it is in our lives makes it hard for consumers to imagine another type of device replacing it.” The smartphone is also the entry point for most people’s experience of AR, particularly filters among younger users, and navigation, translation and virtual try-on experiences for other age groups.

The Consumer Lab previously found that between 2021 and 2023, there was a 50% increase in the amount of daily time that 5G users spent on smartphone AR experiences.

Smartphones aren’t a perfect vessel for XR, though: The screens are relatively small, it’s not an immersive experience, and holding up a device for extended periods can strain your arm. Still, the report found that overall satisfaction level among active XR users is about 47%, but users who combine smartphone AR with VR/AR/MR devices report statistically significant higher satisfaction, around 54%.

Why I Find WebAR More apt as Common People's AR

There's no doubt that latest AR headsets can bring marvel. But how about the millions of students across Asian or African countries with not so strong financials and 5G internet connections – can they access such marvels of AR?

What about millions of people in 50s-60s-70s – still trying to use smartphone to learn and have fun. Do you expect them to buy new devices every quarter to experience AR? Perhaps a very little percentage of them will buy it once or twice in a lifetime.

Yes, smartphones have limitations. But they are everywhere in the world today. They can bring the beauty of AR to massive people without spending money or time on learning curve. That's where WebAR is powerful.

Invest in WebAR – the Future of Education and Business

The fleeting prominence of the HoloLens2 serves as a cautionary tale about the challenges of penetrating the consumer market with high-cost, specialized AR devices. While the initial hype and impressive capabilities of such devices capture attention, sustaining market presence requires aligning with consumer expectations of affordability and practicality. As we move forward, it is clear that the true potential of AR lies not in expensive, standalone headsets but in the inclusive, accessible platform of Web AR. This shift heralds a new era where augmented reality is not just a high-tech novelty but a widely available tool that can enhance everyday experiences for a global audience. The lesson here is that the most impactful innovations are those that are accessible to all, and in the realm of AR, Web AR is the beacon guiding us towards a more inclusive technological future.