Published on December 10th, 2019 | by Emergent Enterprise0
Magic Leap Formally Launches Magic Leap 1 and Reveals Enterprise Partners
Just like Google Glass did years ago, Magic Leap is pivoting to enterprise clients to increase revenue as Dean Takahashi reports at VentureBeat. Most businesses can identify immediate needs for a VR or XR solution and they also have the budget to buy multiple units so it’s an obvious choice for Magic Leap. At almost $3K a pop, though, the product is going to have to prove itself ready for the workplace with a good development platform that is easy to ramp up and a strong UX. We’ll have to wait & see if Magic Leap One gives HoloLens or Google Glass a run for the money.
Photo source: Magic Leap
Magic Leap announced the launch of Magic Leap 1, a $2,995 mixed reality headset. And it also revealed a set of enterprise applications and partners that are aimed at getting the era of “spatial computing” off the ground.
For the past 16 months, Magic Leap was selling its $2,295 headset as a beta version, dubbed the Magic Leap One Creator Edition, targeted at developers of spatial computing and mixed reality apps — which is Magic Leap’s name for overlaying animations on the real world through special glasses.
And since the price is too high for consumers, Magic Leap has turned to enterprises to showcase applications such as learning and assistance, 3D visualization, communication, collaboration and “co-presence,” and location-based services, said Daniel Diez, chief marketing and communications officer at Magic Leap, in an interview with VentureBeat.
Just as virtual reality vendors learned, Magic Leap has learned that new technologies can produce tremendous productivity gains for enterprise applications such as employee training.
Asked if the company pivoted from consumer to enterprise customers, Diez said, “This has been our strategy for quite a while. Over the past 16 months, we’ve been working on a hardware, software, and solutions platform necessary to serve the enterprise and business customers in a scalable fashion. And that’s what we’re announcing.”
Above: Visualizing enterprise data.Image Credit: Magic Leap
He added, “The attention from the media ends up going toward the public examples. We tend to be classified as a consumer device because a lot of our enterprise work was behind the scenes and behind the doors of our enterprise customers. It’s not like you can go into the McLaren factory and see our device in use. And so our consumer-facing applications and content were more visible and got more coverage. The enterprise has absolutely been in our strategy from the beginning.”
A recent story in The Information said that the Magic Leap One Creator Edition sold a mere 6,000 units, compared to the company’s goal of selling 100,000 units. Magic Leap said that report was “littered with inaccuracies and misleading statements, and erroneously portrays Magic Leap’s operations, internal plans and overall strategy.” But it has not disclosed its sales.
And The Information reported that the result of the poor sales has been layoffs, cost-cutting, and other measures such as freezing work travel. A number of people have left, including chief financial officer Scott Henry and special effects wizard John Gaeta, and Magic Leap reportedly signed over its patents to JPMorgan Chase.
In that context, the launch of the Magic Leap 1 and the new focus on the enterprise could be seen as the “hail Mary” play by CEO Rony Abovitz to get Magic Leap on the scoreboard. Magic Leap has raised an estimated $2.6 billion since 2010 at a valuation in the billions of dollars, but it hasn’t shown much yet that justifies the value, the critics say. So now it’s Magic Leap’s moment to prove those critics wrong.
The Magic Leap Enterprise Suite
Above: Magic Leap 1 headset is $2,995.Image Credit: Magic Leap
Available today on Magicleap.com, the Magic Leap Enterprise Suite includes everything a business needs to efficiently roll out spatial computing to employees, enable employees to log in to their device using their enterprise credentials, manage the device and data, and deploy enterprise or custom built applications.