Media reported that the release of the second-generation headset had been delayed for several years because the sale of Magic Leap had failed to meet the high expectations of chief executive Rony Abovitz. Although the company received a lot of attention when it released its first augmented reality (AR) product last year. But the reality is that enthusiasm is wrongly overestimated.
(Screenshot of the official website, via Theverge)
Six months after its release, Magic Leap sold only about 6,000 Magic Leap One headsets — well below its original target of 100,000, according to former employees and sources familiar with the company.
Even so, the company is clearly developing a second-generation Product that supports 5G connectivity, has a wider field of view, is lighter in hardware, and has more color.
However, there are reports that the project has received constraints on basic technology, making it difficult to release updates in the near future. Prior to that, the company may have introduced a slightly revised enhanced version.
Meanwhile, two executives quietly left Magic Leap’s board in 2018, including Google CEO Sundar Pichai and former Qualcomm chairman Paul Jacobs, according to The Information.
But Sundar Pichai may have been busy with the schedule, because its subsequent arrival of another Google executive, Jennifer Fitzpatrick, meant Magic Leap was not completely abandoned.
In the past few weeks, however, Magic Leap has indeed laid off dozens of employees. Last month, Business Insider reported that Chief Financial Officer Scott Henry and Senior Vice President of Creative Strategy John Gaeta had both left.
The company has mortgaged nearly 2,000 patents to JPMorgan this year, the documents show. That may not be a bad thing, given that Magic Leap says it is raising another significant round of capital.
After all, many smaller VR start-ups are falling short of money. As for Magic Leap’s follow-up strategic planning, it is still up to the test.