Apple's launch of the Vision Pro mixed-reality headset followed by Meta's introduction of its AR smart glasses prototype Orion has reignited interest in the field. As a result, the industry is gauging what Google's direction in the AR/VR space may be going forward to ride the renewed momentum.
Google's AR pivot
Industry analysts suggest that Google is pursuing two main avenues for its AR initiatives: smart glasses and headsets. In recent years, the company has pivoted toward AR and extended reality (XR) upon the acquisition of two startups with relevant technologies and the earlier discontinuation of projects like Google Glass and Daydream VR. AI will remain a core technology in this development.
However, Google's AR division has faced several setbacks, including the departure of key personnel, and layoffs in the hardware sector. Reportedly the AR device project, codenamed Iris, has been shelved.
This has led to speculation that Google may concentrate on AR software development and licensing technologies to partners, with collaborations with Samsung Electronics and Qualcomm continuing to progress. In terms of investment in AR hardware, it remains uncertain whether Google will increase its focus on peripheral hardware development or if XR devices will prove profitable.
Samsung and Qualcomm continue collaboration, eyes for 2025 product launch
In 2023, Samsung announced plans to collaborate with Qualcomm and Google on XR-related products. It was speculated that Samsung would handle device hardware integration, while Qualcomm would serve as the chip provider, and Google with the software license. During last year's I/O event, Google mentioned expanding XR partnerships with Samsung.
Fast forward to the 2024 I/O session, where Sameer Samat, President of Google's Android Ecosystem, stated that ongoing collaboration with Samsung, Qualcomm, and other ecosystem partners on AR/XR product development is underway, although new products will require a longer gestation period. Recent reports suggest that the collaboration among the trio may yield a product launch in the first quarter of 2025.
AR/VR development stumbles amid restructuring and layoffs
In 2020, Google acquired the Canada-based smart glasses startup North, in hopes of promoting various devices for daily collaborative use, aligning with the vision of ambient computing. In 2022, it confirmed the acquisition of micro LED display technology firm Raxium, integrating its team into its device development efforts.
However, reports in 2023 indicated that Google had shelved the AR device project named Iris, refocusing on AR software development and licensing those technologies to device manufacturers.
In January 2024, Google was swept by a wave of layoffs with the hardware division being hit the hardest. The company confirmed it had eliminated hundreds of positions in its Devices and Services Platform (DSPA) department, with the first-party AR hardware team experiencing the most significant impact.
Despite that, Google emphasized its commitment to developing AR-related projects, including "AR experiences" for its products and those of partners. In April, Google announced the merger of the DSPA team with the platform and ecosystem group to create a new Platforms and Devices department, led by senior vice president Rick Osterloh.
Key departures in recent years include Paul Greco, former Vice President of Hardware Engineering at Google, who transitioned to Meta in January and now serves as the Vice President of AR Hardware Engineering at the firm. Another notable departure was Clay Bavor, who had an 18-year tenure at Google, previously serving as Vice President of AR/VR and leading the Project Starline 3D telepresence initiative and Google Lens.
He left in March 2023 to establish a commercial conversational AI platform, Sierra.
DeepMind's commercialization of project Astra
During the 2024 I/O event, Google unveiled Project Astra, an initiative that presents a vision for an AR-based AI assistant.
Demis Hassabis, CEO of Google DeepMind, highlighted the enhanced capabilities in visual recognition, natural conversation, and reasoning through the Gemini multimodal model. The demonstration showcased the AI assistant's ability to analyze environmental information and track the location of specific objects along a path using Pixel phones and smart glasses.
This development has led to speculation about the potential revival of Google's smart glasses. However, questions remain regarding which manufacturer will produce them and what the business model will entail, neither information is currently available.
In summary, Google appears to be placing greater emphasis on AR and XR development while reducing its investment in fully virtual reality initiatives. The Gemini series models serve as a central focus, showcasing a dual-axis approach integrating AI and AR.
As a result, Meta is poised to be Google's primary competitor in this domain. Nevertheless, similar to how Pixel devices are often viewed as an emulation of the iPhone, Apple will remain a significant reference point for Google.
Despite the maturation of Google's Pixel series, reports indicate that its hardware products continue to generate limited profits. The future of Google's investment in AR/XR hardware development, following its work on self-developed chips and smartphones, remains uncertain.
