Samsung and Google have launched “Project Moohan,” a mixed reality headset that combines augmented and virtual reality through the new Android XR operating system. Initially aimed for a 2024 release, delays have shifted the target to 2025. As competition intensifies, particularly against Apple’s Vision Pro and Meta’s Quest, the mixed reality market faces challenges, including declining sales. Despite advancements, many devices struggle to maintain user engagement, highlighting the technology’s ongoing developmental phase.
Samsung and Google’s Collaborative Venture: Project Moohan
The launch of Apple’s Vision Pro has been met with mixed reactions, yet this has not deterred competitors from pushing forward. After months of collaboration in the realm of mixed reality, which seamlessly fuses augmented and virtual reality, Google and Samsung unveiled their joint project, dubbed “Project Moohan,” on Thursday. This innovative headset, developed by Samsung, integrates Google’s new operating system, Android XR, providing users with an immersive experience. “Imagine stepping into any environment in an instant—from the vibrant streets of New York to the serene snow-capped Alps. You won’t just observe these worlds anymore; you can interact with them using a simple glance, gesture, or voice command,” Samsung proudly declared in a recent statement.
Challenges Ahead for the Mixed Reality Market
In February 2023, a partnership was forged between Google, Samsung, and Qualcomm to create a cutting-edge headset, initially slated for a 2024 launch. Unfortunately, the project has encountered several setbacks, pushing Samsung to target a 2025 release. This latest initiative aims to rival Apple’s Vision Pro and Meta’s Quest headsets. Research from Counterpoint indicates that Meta’s device currently dominates the market, holding a staggering 65% to 75% share in augmented and virtual reality headsets during the first half of the year. In comparison, Pico trails with an 8% share, while Apple only managed a mere 3% in the second quarter. Despite a temporary surge to 16% during its launch phase in early 2024, Apple continues to face challenges in maintaining that momentum.
As for Google, it aims to follow a similar path to its smartphone ecosystem by licensing its Android XR operating system to various headset manufacturers, excluding Apple, which prefers a closed ecosystem. Google also faces competition from Meta’s Horizon OS, which has already established partnerships with companies like Lenovo, Microsoft, and Asus, giving it a competitive edge in the market.
Despite the optimism from tech leaders regarding mixed reality, the technology is still perceived as a work in progress. It offers users the ability to engage with digital environments while remaining aware of their physical surroundings. Furthermore, users can fully immerse themselves in virtual reality if desired. “XR technology has rapidly evolved from a distant dream to a practical reality, presenting opportunities for deeper interactions,” asserts Won-Joon Choi, Samsung’s vice president in charge of research and development. “We are at a pivotal moment for mixed reality, with advancements in multimodal AI making the technology more intuitive for everyday use,” adds a Google spokesperson.
However, the market reality paints a different picture. Mixed and virtual reality headset sales saw declines of 29% and 4% year-on-year in the first two quarters of 2024. Overall, 2023 experienced a 20% drop in sales compared to the previous year, according to Counterpoint’s analysis. Apple, for instance, has faced difficulties with its Vision Pro, which retails for $3,500, with fewer than 500,000 units sold since its launch in February. Additionally, many early adopters reportedly do not use the device regularly. Meta is also grappling with similar issues, finding it challenging to encourage prolonged usage of its devices.