Meta, formerly Facebook, has long championed a vision of the metaverse, but its initial forays into virtual reality haven’t quite achieved mainstream traction. However, the recent unveiling of their Orion augmented reality (AR) glasses prototype at Meta Connect has generated significant buzz and excitement, marking a potential turning point in Meta’s ambitious hardware strategy. This innovative device, nearly a decade in the making, boasts seamless holographic projections onto the user’s real-world view, controlled intuitively via a neural-signal-reading wristband. The overwhelmingly positive early reactions from both internal staff and select external testers, coupled with Meta’s revitalized financial standing, suggest a significant shift in the narrative surrounding the company’s metaverse endeavors.
Key Takeaways: Meta’s Orion AR Glasses Prototype
- Orion AR glasses, a decade-long project, were unveiled at Meta Connect, showcasing seamless holographic overlay onto the user’s real-world vision.
- Intuitive control is achieved via a neural signal-reading wristband, eliminating the need for cumbersome handheld controllers.
- Early reviews are overwhelmingly positive, suggesting a major technological leap in AR technology.
- Meta aims to engage developers in 2025 to build apps for Orion, leveraging the company’s advanced Llama AI models for enhanced functionality.
- Orion’s unveiling comes after a period of significant financial recovery for Meta, boosting investor confidence in the company’s future.
A Project 10 Years in the Making
Meta’s journey with Orion began as early as 2016 under the leadership of Oculus’ then-chief scientist, Michael Abrash (now chief scientist at Reality Labs). Initially a research and development project, it transitioned to the product development pipeline in 2018 under the guidance of Andrew “Boz” Bosworth, Meta’s current chief technology officer. Early versions of the glasses suffered limitations, operating effectively only in highly controlled environments. However, a significant advancement was achieved by March of this year when Meta completed its prototype, which weighs less than 100 grams (3.5 ounces) and boasts a 70-degree field of view.
Overcoming Challenges
The road to a consumer-ready version of Orion remains long and challenging. One key hurdle involves establishing a global supply chain capable of sourcing rare materials, notably silicon carbide for the display lenses. To address this, Meta recently recruited an expert from GlobalFoundries, a semiconductor contract manufacturing company, to oversee the development and management of Orion’s supply chain.
Internal Shift in Sentiment
The successful Orion demonstration at Meta Connect has brought about a palpable shift in sentiment within the company. Sources close to Meta, speaking on condition of anonymity due to non-disclosure agreements, report a significant increase in internal enthusiasm for Zuckerberg’s hardware endeavors. This positive change contrasts with the uncertainty and skepticism that preceded the unveiling.
Building on Surprise Success: Ray-Ban Meta Smart Glasses
While Orion represents a significant leap forward, Meta isn’t neglecting its current AR projects. The company’s collaboration with EssilorLuxottica on the second-generation Ray-Ban Meta smart glasses has unexpectedly exceeded expectations. These glasses, released in September 2023, showcased improvements in camera quality, battery life, and the inclusion of an AI voice assistant. Sales exceeded 730,000 units in their first three quarters, leading Zuckerberg to describe them as “a bigger hit sooner than expected.”
Further Collaborations and Expansion
Building on this success, Meta and Luxottica have extended their partnership to release a third generation of Ray-Ban Meta smart glasses this holiday season. These new glasses are anticipated to feature a small display integrated into one of the lenses, offering a more substantial AR experience. Meta is also augmenting its marketing efforts to increase visibility and reach more consumers. The firm has opened a pop-up shop, showcasing their smart glasses and celebrating what it described as the “ultimate Meta pop-up experience.” This move highlights a strategy that aims to increase sales over the holiday season.
Meta’s Financial Turnaround and Long-Term Vision
The positive reception of Orion coincides with a remarkable financial turnaround for Meta. After experiencing a significant stock value decline in 2022 (losing almost two-thirds of its value) and subsequent layoffs of around 21,000 employees (a quarter of its workforce), the company has witnessed a resurgence. Meta’s stock price nearly tripled during 2023,and saw further increases in 2024, reaching a new high this month. This recovery attributes to a revitalized online advertising business, resilient efforts to adapt to Apple’s iOS privacy changes, and the strategic integration of generative AI tools to enhance advertising campaigns.
Reality Labs and the Long Game
Despite this success, Meta’s Reality Labs division, focusing on AR and VR technologies, continues to operate at a loss, reporting billions in quarterly losses. In the second quarter of 2024, Reality Labs generated only $353 million in revenue — less than 1% of the company’s total sales. Industrywide challenges exist as well, with global headset shipments declining by about 28% year-over-year, reaching only 1.1 million units during the same period. Zuckerberg acknowledges that this is a “very long-term bet,” requiring patience and a different investment model than traditional investors might be accustomed to. Orion, however, presents a tangible, albeit still unfinished, example of the company’s strategic vision.
Zuckerberg described Orion as a “time machine,” emphasizing its significance as a tangible demonstration of the future Meta envisions. While challenges remain regarding mass production and broad consumer adoption, the enthusiastic response to Orion signifies a significant step forward in Meta’s ongoing quest to redefine and lead in the AR and VR market. The path ahead is undoubtedly long and intricate; however, the optimism evident in the company’s employees and increasingly positive financial indicators suggest that Meta considers their bet on the future to be a worthwhile one.
