Magic Leap’s more than $2 billion AR fantasy is awake

Magic Leap, who blew out the AR myth with special effects, finally got a new twist. Magic Leap, a “well-known” company in augmented reality (AR) on December 10, local time, announced that it would rename Magic Leap 1 for Magic Leap One, and release two Magic Leap ecosystems New components: Enterprise Suite and Device Manager to further facilitate the implementation of enterprise solutions.

From consumer-grade products to enterprise solutions, Magic Leap takes its To B step in a series of negative news stories.

Magic Leap's more than $2 billion AR fantasy is awake

Photo Source: The Verge Owner: The Verge

More than $2 billion blowing UP THE AR dream

Florida-based Magic Leap is a mysterious, highly valued augmented reality device start-up.

Its CEO, Rony Abovitz, a graduate of the University of Miami, founded Mako Enmedical Robotics as early as 2004, and Abovitz’s studio released records in 2010, not out of touch with technology. In 2011, Abovitz launched Magic Leap and launched an AR app called Hour Blue, taking a big step forward in ar space.

In the years that followed, Magic Leap was slow to release products, constantly creating expectations for products through the disclosure of multiple Demos, patent applications, and so on, and constantly creating expectations for the products.

In 2016, Magic Leap released a whale 7D video with a stunning image of a whale leaping from the ground in the gym and turning it into a bubble as it fell back to the ground, while spectators exclaimed that they were watching the show naked without any equipment. News of the 7D video was widespread and public expectations of Magic Leap grew, but there was criticism – an article published by The Information, an online news magazine, on December 8, 2016, entitled “Behind Magic Leap” The fact” article, by its author, Reed Albergotti, reveals that it’s just a concept video made out of special effects technology, which is far from being truly practical.

Magic Leap's more than $2 billion AR fantasy is awake

However, the lack of products, the video hype of the questioning does not seem to affect the pace of financing. Magic Leap continues to peak at the financing level, once becoming the most expensive “concept” company in history, raising more than $2 billion in the back and forth.

Magic Leap’s financing since its inception is as follows:

In February 2014, round A was $50 million, and investors were not sure;

In October 2014, Round B was $542 million, with Google Leading Investment, Qualcomm, KKR, KPCB and other big-name investment institutions following the investment;

In February 2016, The C-round was valued at $793.5 million, led by Alibaba, which also included Google and JPMorgan Chase, with a valuation of $4.5 billion;

In October 2017, The D-round was valued at $502 million, led by Temasek Holdings of the Government of Singapore, which included EDBI, Brazil’s Grupo Blobo, and Janus Henderson Investors, which were valued at $6 billion.

In April 2019, it was financed by $280 million by NTT DoCoMo, Japan’s largest mobile operator.

The “AR myth” has been completely destroyed.

In December 2017, Magic Leap’s first black technology product, Black Tech, was unveiled in the face of expectations, and it was named Magic Leap One Creator. On its website, Magic Leap introduces the product in six sections:

The light field display produces digital light at different depths, seamlessly blending with natural light, resulting in realistic digital objects that ensure long-term user comfort.

Powerful sensing kits detect surfaces, planes, and objects for 3D reconstruction of the physical environment.

Virtual objects constructed by light sites can be placed where the user wants to be, just like real objects.

Sound field sounds simulate real-world sounds, including the distance and intensity of sound.

The integrated processor handles high-fidelity, game-level graphics images that perform at laptop level.

The interactive interface includes a variety of input modes, such as speech, gestures, head posture, and eye tracking.

In addition, Magic Leap One is focused on the C-side market, with scenarios ranging from shopping, entertainment, and efficiency. The Magic Leap One consists of three parts: an AR glasses Lightwear, a handle and a processor Lightpack.

Magic Leap's more than $2 billion AR fantasy is awake

However, the Magic Leap One, which has a horizontal field of view angle of only 40 degrees, does not meet public expectations. Patented, Magic Leap does not use its claimed fiber-scanning technology, but instead uses the same optical waveguide technology as HoloLebs; In one of the few early interviews, Abovitz said a glass similar to a spectacle plate in his hand was the core of Magic Leap’s technology, which he called an “optical chip” – but the “optical chip” was not used in Magic Leap One.

Whether Magic Leap is a marketing guru or a tech no-business is a matter of question. When Wired reporter Jessi Hempel experienced Magic Leap One, she found that there were a number of minor problems with the product, such as a broken handle, a picture of Caton, and so on;

To be honest, these experiences are on the same level as the AR and VR devices I’ve played before, and it’s a bit of an exaggeration to say that it kills all of my opponents in seconds.

It wasn’t until more than half a year after its release, in August 2018, that Magic Leap One began selling through Magic Leap’s website and at.T stores, and according to the source, only about 6,000 units were sold six months after the product went on sale, compared with the previous target of 10. 10,000 sets.

In 2019, Magic Leap has had a number of negative news stories.

Magic Leap E round financing is not going well, Magic Leap One sales are poor, and there’s a huge backlog of products. On August 22, abovitz signed a “transfer agreement” with Jpmorgan mortgage agent Eleftherios Karsos, which covered approximately 1903 mortgage patents, including former ODG patents. In November, both the company’s CFO and Creative Strategy Senior Vice President SVP executives left, and Magic Leap is scaling back staff to reduce operating costs, and several department spending have been made.

By now, Magic leap’s “AR myth” has been completely shattered.

Positioning adjustment, Magic Leap has to save itself.

“Clearly, Magic Leap does not intend to acknowledge its failure;

In this adjustment, Magic Leap is open to business, with the launch of the $2995 Magic Leap 1 Enterprise Suite, replacing Magic Leap One Creator Edition, and two Magic Leap Eco System new components: Enterprise Suite and Device Manager.

Omar Khan, Chief Product Officer, Magic Leap, said there would be a “small adjustment” to Magic Leap 1, but the appearance of Magic Leap 1 did not appear to have changed, and there was clearly no significant change in industrial design and optics, including field of view and overall visual quality. Magic Leap avoids calling it the “next generation” head and says it plans to release Magic Leap 2 in 2021.

It is important to note that Magic Leap 1 as a commercial product, the user base will no longer be a developer or creator. According to previous lymes, as early as 2015, Magic Leap officials said they would prioritize gaming, entertainment, and communications, and then move in other directions: either commercial, industrial or medical. Product Manager Zhao Zhixuan also mentioned in the article:

While Magic Leap has not yet disclosed the direction of the B-side collaboration, it is not hard to imagine that the growth of the B-side business will also require the support of a high-quality experience, and Magic Leap is likely to have begun to have a secret layout on the B-side.

This time, Magic Leap will update its operating system and launch a software suite for professional users, including Jump, a virtual collaboration app that will be launched in beta in recent months. Magic Leap also offers an enterprise suite that includes dedicated support, dedicated device management software, and a “quick change” program in the event of a head failure. Businesses can roll out devices to employees, manage devices and data, and deploy enterprise or custom-built applications when they log in through an enterprise certificate.

However, Omar Khan said the move did not mean Magic Leap had abandoned the consumer market.

But he acknowledges that the consumer market is small and that most AR companies, such as Epson, Microsoft and Vuzix, have shifted their focus to professional users. Magic Leap has four directions of focus: virtual communication and collaboration, 3D visualization, remote training and assistance, and location-based experiences that are currently competitively competitive.

“I think we’re a little arrogant.”

Khan believes that while Magic Leap started late compared to other AR companies, he believes Magic Leap 1 can still win over users with visual quality, ergonomics, and software ecosystem compatibility, and that the company has been designing devices that users can use comfortably around the clock.

At the same time, Magic Leap is actively seeking external cooperation to expand its global market share. Magic Leap has issued approximately 24 partnership statements, and its partners include some of the most prominent companies, such as game engine developer Unity and manufacturer Jabil. JetBlue Airways has also partnered with Magic Leap to say it will try to create an “immersive experience” for popular destination hotels next year. In addition, NTT Docomo, the Japanese telecoms giant that announced its partnership with Magic Leap earlier this year, has confirmed that Magic Leap 1 is entering the Japanese market.

As Khan says:

The announcement heralds a new chapter in space computing and will provide an advanced technology platform for all industries. Our partners pioneered the development of breakthrough applications designed to enhance the enterprise business and its customer experience. We’ll use smart apps to rewrite the script to help all stakeholders increase efficiency, engagement, and new opportunities.

That’s good, but people won’t be so easy to believe.

Back in August 2018, in an interview with Wired’s Jessi Hempel, Rony Abovitz said she wanted to go back to a regular, product-speaking start-up. He realized that all the hype was a mistake and said:

I think we’re a little arrogant.

But it may be too late. Whether It’s To C or To B, a chilling reality is emerging after the AR myth is shattered – as Wired reporter Jessi Hempel puts it:

He may be right, but the icy reality has capped the boom and the marketing of the sky, and Magic Leap is just an ordinary tech company that needs to invest a lot of money and manpower to pursue a dream. There are no chocolate factories in the world, only engineers and designers, and they rush out the first product…

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