Samsung’s Q3 Earnings Reveal ‘Upcoming XR’ Defying Big Tech VR Slowdown

Key Takeaways

• Samsung has been teasing the prospect of a new mixed reality headset since 2022.
• In a recent earnings call, the company hinted that the device may land in 2025.
• Meanwhile, other Big Tech players have changed course on virtual and augmented reality.

After discussing the concept for several years, Samsung gave its strongest indication yet during a third-quarter earnings presentation on Wednesday, Oct. 30, that mixed reality (XR) headsets are incoming.

In slides shown to investors, the firm hinted that “upcoming XR devices” could land in 2025, bucking a trend among other Big Tech firms for reining in their virtual reality ambitions.

Samsung’s XR Journey 

Although Samsung initially entered the headset market in 2015 with Gear VR, it hasn’t released any new products since 2017’s Odyssey.

During the 2022 Mobile World Congress, CEO Han Jong-hee hinted at a new augmented reality device intended to ride a contemporary wave of metaverse hype. Such headsets “are now the talk of the town,” Han said at the time, adding that Samsung’s take on the concept “won’t take too long.”

In February 2024, it was reported that Samsung had assembled a team of over 100 people to accelerate augmented reality development. Then, in July, Google’s Senior Vice President for Platforms and Devices, Rick Osterloh, confirmed that his company had been “working closely with Samsung and Qualcomm” on a new “XR platform.”

However, despite dropping hints, Samsung hasn’t revealed any concrete details of the anticipated product launch, and the release timeline remains uncertain. 

Product Development Stalls

Whatever the reason for Samsung’s delayed entry into the XR market, it mirrors a wider slowdown in the space that has also affected Google and Meta. 

In 2023, Google scrapped a project to develop augmented reality glasses and, earlier this year, laid off the majority of its augmented reality team.

Although Meta remains committed to the technology more broadly, earlier this year, it canceled plans for a new premium Quest headset and appears to have refocused its efforts on smart glasses for now.

Meanwhile, the Minecraft developer Mojang Studios recently announced that it would discontinue VR headset support after March 2025.

Where Does XR Go Next?

In comments made during a recent earnings call, Meta CEO Mark Zuckerberg highlighted the potential appeal of glasses as “ the ideal form factor for AI.” 

His remarks suggest the company may shift its attention toward XR as an AI interface that can be integrated into everyday life, marking a diversion from the focus on immersive experiences that characterized the conversation in 2022. 

Incidentally, given how little is known about Samsung’s upcoming platform, there is no guarantee it will emulate the clunky headsets of the Odyssey era. Nevertheless, rumored specifications seem to confirm the theory that it will be a headset rather than a pair of glasses.