Mehta said allowing outside access to Horizon OS, the operating system used by Quest devices, will help lower the barrier to market entry for hardware manufacturers looking to develop new products. MR apps sold by software developers on Meta Store can reach more potential customers. “The range of hardware that can run apps will be much wider, and device manufacturers will see their markets expand to more users, just as they did with PCs and smartphones,” Mehta added.
Industry experts also agreed that Meta’s push for an open ecosystem can lower the entry barrier for hardware manufacturers. It was also evaluated as an opportunity to strengthen Meta’s initial dominance in the AR/VR market.
“It’s a smart move for Meta to diversify its hardware ecosystem while also working to make Meta Horizon OS the standard MR headset OS,” said Forrester senior analyst Will McKenwhite. “We can now decouple the OS from the hardware efforts,” he said.
What is Horizon OS and who uses it?
Meta has invested billions of dollars in recent years to create devices such as the Quest 3 and Quest Pro. These devices offer features such as real-time video pass-through, tracking to track the user’s movements and location, and spatial anchors to anchor digital objects in physical space. Horizon OS used by Quest is an operating system developed based on a modified version of Google Android. Mehta explained that Horizon OS is the result of a 10-year effort to create virtual and mixed reality products.
According to Meta, Lenovo, Asus, and Microsoft’s Xbox gaming division will develop hardware using Horizon OS. Asus and Xbox focus on gaming, while Lenovo develops headsets aimed at ‘productivity, learning, and development’. Meta CEO Mark Zuckerberg recently mentioned in an Instagram video message that it could be several years before these devices are released.
Ramon Lamas, research director for devices and displays at IDC, said of Android’s presence in the smartphone and smartwatch market, “Google created the platform, and a lot of vendors are using it now. Google’s own hardware, including Samsung, uses Android.” “We compete with partners who do it,” he said. The explanation is that Meta is “following Google’s playbook” by opening its OS.
But as with Android, access to a software ecosystem is a huge attraction for MR headset suppliers in early-stage markets with low demand.
Remove barriers from hardware manufacturers
Making MR headsets is a tough challenge for hardware manufacturers. The problem is complicated because it requires not only hardware but also basic software. “It’s a difficult hurdle to overcome, especially for small businesses,” Lamas said. However, some of these problems were resolved through the opening of Horizon OS. MR headset suppliers can now use Qualcomm’s specialized VR chipset and Meta’s software platform. “It’s an attractive value proposition. It could remove a number of barriers for many businesses,” Lamas said.
A mature ecosystem helps drive adoption. By integrating Meta’s Horizon OS, hardware vendors can have the apps and ecosystem they need to support their products, said Ansel Sag, principal analyst at Moor Insights and Strategy.
However, despite these potential benefits, hardware vendors should consider whether partnering with Meta is the right strategy for them. Sag advised, “It remains to be seen which companies will participate. Even if there are many things we like, we need to thoroughly review it to see if it is suitable.”
‘Meta vs. Apple vs. Google’…who is the final winner?
IDC predicted that 9.7 million AR/VR devices will be sold worldwide this year. Meta accounts for a large portion of the relatively small market. According to IDC data, more than 60% of AR/VR devices sold in the fourth quarter of 2023 are Meta products.
Although demand for MR devices has not yet fully developed, Meta is currently facing competition on several fronts. With the release of Apple’s Vision Pro earlier this year, it has a new competitor. Although the expensive Vision Pro is expected to sell only a few hundred thousand units this year, it is certainly a competitor to keep an eye on.
Google is also expected to provide the operating system for Samsung’s MR headset, which is scheduled to be released later this year. Google’s Android is the biggest competitor to Apple’s mobile ecosystem, but the extent of its ambitions in the AR/VR market is currently unclear.
Saag pointed out that Meta, which has invested the most in MR technology in recent years, has an early advantage over Google and Apple with a relatively robust 3D app library, and that Apple and Google are effectively starting from scratch with their own software.
In this situation, Meta’s decision to open up access to its OS could have another advantage going forward. “It will be a challenge for Apple and Google for Meta to open up the ecosystem and make development easier, which will ultimately lead to more competition between ecosystems, benefiting everyone,” Sag said.
Increasing market competition is good news for MR device users. “The real winner is the end user. For the time being, consumers will be the winners, and soon after, enterprise users will be the winners,” Lamas added.
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