Augmented reality start up Magic Leap changes up their game plan to enterprise to deal with what they believe the post-COVID-19 world will be like.
Augmented Reality start up Magic Leap shifts to enterprise focus to handle new COVID-19 world
This week augmented-reality startup Magic Leap, Inc. announced a shift away from consumer business towards enterprise products. A report by Bloomberg says the move has caused the company to cut about 1,000 employees, around half of its workforce to accommodate the change in business models. Once seen as the future of AR in the home, this move represents a drastic change for the startup darling.
Magic Leap was founded in 2011 whose IP (a lightweight headset using spatial computing technology to create sophisticated augmented reality experiences) attracted investment attention from big-hitters including Alibaba Group Holding Ltd., Alphabet Inc., and Saudi Arabia’s Public Investment Fund. The startup raised more than $2.6 billion, becoming one of the most well-capitalized consumer hardware startups ever.
The company’s first headset was revealed in 2018 priced at $2,300 after years in development. Magic Leap emphasized a consumer-driven product, marketing the Magic Leap 1 Lightwear for its uses at home such as remote work, games, social media, and entertainment.
CEO Rony Abovitz wrote in a blog post that this shift is driven by the current pandemic. “The post-COVID economy will be one of resiliency and the ability for businesses to operate across vast distances and connect with their customers in ways that mimic physical interactions, but benefit from the speed and scale of high-speed networks, will be critical. Spatial computing will very much be part of that coming economic change. Magic Leap’s pioneering work in the field provides us with a rich platform of technology and know-how to help usher in this era of Spatial Transformation.”
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