Magic Leap was one of the highest funded stealth start-up companies in recent memory raising over $1.9 billion prior to any public launch. They have gone on to be valued at over $6 billion but the company has come up very short thus far.
They haven’t made a splash within the immersive technology community and the sales numbers were significantly lower compared to Oculus, HTC, or Valve. According to PCMAG, the company only sold 6,000 units of their only product in six months after its release.
The reviews for Magic Leap’s mixed reality HMD hasn’t been all that impressive neither. When we tested the headsets ourselves, nothing really screamed “special” for its massive $2,295 price tag
On top of that, the COVID-19 situation hasn’t helped at all with the company’s business so they have announced layoffs across the board in the company.
Rony Abovitz, CEO of Magic Leap stated the following in their press release:
“To better prepare Magic Leap for the future, we have taken a close look at our business and are making targeted changes to how we operate and manage costs. This has made it necessary for us to make the incredibly difficult decision to lay off a number of employees across Magic Leap.
This has been a painful process, as every member of our Magic Leap team has demonstrated not only unparalleled talent but a true passion for our company’s mission. But after lengthy, careful consideration, I have determined this is ultimately necessary to give us the best chance for future success. These changes will occur at every level of our company, from my direct reports to our factory employees.”
Magic Leap is currently selling hardware that costs over $2,000 with very limited content to an enterprise market that’s currently digging themselves out of the trenches as well.
The company will have to make significant changes in order to have a chance to survive through these rough economic times, even with their massive funding if they don’t want to burn through all the cash.
What are your thoughts and futures about Magic Leap?