Technologies
2023 Could Be the Metaverse’s Make-or-Break Year
A wave of new VR/AR headsets is coming, but Apple’s plan is the biggest mystery of all.
I could tell you about all the VR headsets and AR glasses and theoretical apps I tried this year that were supposed to define 2022’s vision of the metaverse. Instead I’ll just tell you about the best thing I did this year, and the thing I miss the most: Doing improv acting workshops with a little group of other performers in VR.
We gathered every week in an app called Altspace VR, invited by a brilliant interactive acting teacher named Jeff Wirth. We met every Monday, exploring ideas in performance with avatars. I put on my Quest 2 headset in my dusty little home office and met with friends I’d never seen in person.
The class ended too soon, and when I look back, I remember these sessions like we were really together. That’s what the metaverse is to me. It’s a real thing. We’re just not all there yet.
2022: A brief look forward, but only brief
More recently, standing in a kitchen, changing countertops and looking at cabinet finishes, I walk over to the window. I see a blank white room outside, along with a mirror. I see myself, with a VR headset on. I’m standing in a virtual room, suspended in a real room with mixed reality, wearing a Varjo XR-3 headset. This jarring moment represents the future — yet still the unrealized potential — of what could be coming next.
I thought 2022 would be a big year for VR and AR, and even the metaverse, a buzzword concept that’s a stand-in for how the world’s internet and virtual communities, including social media, could evolve. It wasn’t. An economic downturn, crypto’s collapse, waves of tech layoffs, and the delay of many of the most-expected VR/AR devices turned this year around fast.
Now 2023 is looking to be the big year for immersive «extended reality» (aka XR). Apple’s long-expected headset should arrive, with expectations that it’ll rattle the landscape. Meta’s Quest 3 is confirmed. The PlayStation VR 2, a headset I’ve already tried, is coming in February. And who knows what other surprises the new year will bring?
As far as the metaverse goes, it’ll only move as far as mass social adoption takes it. I’m more interested in the hardware that’ll power such tech, because until VR and AR headsets take their next leap, it’s still going to be a challenge to expect people to spend more time in them than they already are. But this is what 2022 showed me, and where it points to 2023.
Magic Leap 2, Meta Quest Pro: A mixed-reality future coming
The two headsets that made the biggest impact on me this year bookended 2022: Magic Leap 2 and Meta Quest Pro. They are, in many ways, mirror products. One is trying to approach the future of mixed reality from the AR side; the other is coming to mixed reality from the VR side. Both are trying to become more comfortable, and more reliable. Both show that there still is no ideal form for The Next Headset yet, but we’re slowly getting closer to a consensus on how the devices might do it.
The Magic Leap 2, a follow-up to the original Magic Leap headset that debuted back in 2018, has pivoted from a device targeted at the masses to a headset for business. The hardware is considerably better, and it maps overlaid, glowing virtual objects onto the real world with a greater field of view. It also, amazingly, dims out the world – a bit like a pair of sunglasses. But it’s not the ideal set of AR glasses: it runs on a more powerful dedicated processor connected to a belt-mounted mini-computer that it’s tethered to, and its single controller is fine for basic controls but not necessarily for full immersive interaction.
The Meta Quest Pro really isn’t that big a change from the two-year-old Quest 2, and certainly isn’t worth the extra $1,100 for anyone who isn’t a developer. But its improved features eye- and face-tracking, and better mixed reality with color passthrough cameras — are indicators of what will show up on many VR headsets (and AR ones) in 2023 and beyond.
The Quest Pro’s mixed reality is what really surprised me. It’s not great, but it’s similar in spirit to what the Varjo XR-3 headset can do. And the Pro, when it’s on my head running a mixed-reality app, reminds me more of AR headsets like the Microsoft HoloLens 2 than a VR headset. The way I can see the world and also see around the display through my peripheral vision feels like some sort of glasses-like AR experience, for a moment, even if it’s not.
No one is able to make good AR glasses yet. Instead, everyone’s trying to get a bit closer as best they can.
Expect more competition for Meta
The Pico 4 VR headset, made by TikTok parent company ByteDance, feels like a clone of the Meta Quest 2 but with some improvements. What’s really surprising is its price undercuts Meta’s. ByteDance did this intentionally, and likely at a loss, but it shows that somewhat affordable standalone VR headsets could be a much more common thing going forward. Pico already has them. Some of Qualcomm’s device partners using the company’s ubiquitous VR/AR chips will have them, including, likely, HTC Vive, which is already teasing a mixed-reality headset for CES. Valve is rumored to have a standalone VR headset of its own, codenamed Project Deckard, that could make a big gaming splash. Pimax, a manufacturer of VR headsets, has a combination gaming handheld/VR headset called the Pimax Portal expected for early 2023, too.
What about phone-connected headsets?
Qualcomm has been promising a wave of phone-tethered AR and VR devices for years, and they’ve been starting to emerge. HTC’s Vive Flow, released in 2021, was an attempt at a smaller pair of phone/VR glasses. Qualcomm’s latest initiatives for smaller AR glasses arriving between 2023 and 2025 can work wirelessly with phones. It’s probably pretty likely that the powerful phones we carry with us will help do some of the heavy lifting for smaller headsets in the next few years. Apple could be planning that approach with its expected headset in 2023.
Here comes Apple
Apple’s long-expected headset, likely to be VR with mixed-reality capabilities similar to what the Quest Pro provides, could shake up the landscape like nothing else since the Oculus Rift. Apple’s products tend to disrupt and take over categories: the iPhone, the iPad, the Apple Watch, AirPods. Can Apple do the same with VR and AR? It’s a far greater challenge, especially with the technical questions and the expected price (well over $1,000, possibly several thousand), as well as the recession climate we’re in globally.
Even more interesting to me is who else comes out of the woodwork alongside Apple. Google has been laying low with AR and VR for years since its discontinued Google Daydream platform, but recent efforts like Project Starline and assistive smart glasses show there’s exploration going on. Samsung hasn’t had a new AR or VR device in years, either, even though the company was a VR pioneer with Gear VR and tends to jump into markets early with bold experimental products. Will 2023 be a year for showing surprise products?
Will people care enough to wear them?
As I ask myself whether VR headsets really have a future in people’s homes, I’m distracted by my 14-year-old son, who’s literally playing a VR game on the Quest 2 right next to me. VR’s already here for many people. It’s hard to appreciate that. It’s not «what if,» it’s «what else can I do?». VR headsets are mostly clever, limited-use game consoles for most people. Meta’s tried to flex the Quest to be more. Not everyone’s been interested, and the Quest’s not fully up to the challenge.
The next wave of VR and AR headsets need to be better at what they do: to be better game consoles; have more comfortable displays, more useful controllers and ways to interact; be more interconnected with the apps and devices we already have; be more portable and more accessible.
They need to work better with prescription glasses (I find many headsets don’t fit with my glasses, or can’t accommodate my prescription). New apps need to emerge that can show what a seamless 3D virtual world can do for us. Sony, Meta, possibly Apple and whoever else shows up next year need to do this, because VR/AR headsets aren’t necessary tools for everyone yet. They have proved some successes: for design, for simulations, for gaming, even for fitness. In 2023, I’m interested in seeing if they can be more.
One thing that does seem certain, though: There are a lot of new VR headsets coming in 2023, and they’re coming soon.
Technologies
Google races to put Gemini at the center of Android before Apple’s AI reboot
Google is using its latest Android rollout to position Gemini as the AI layer across phones, Chrome, laptops and cars.
Google is using its latest Android rollout to make Gemini less of a chatbot and more of an operating layer across the phone, browser, car and laptop, just weeks before Apple is expected to show its own Gemini-powered Apple Intelligence reboot at WWDC.
Ahead of its Google I/O developer conference next week, the company previewed a number of Android updates, including AI-powered app automation, a smarter version of Chrome on Android, new tools for creators, a redesigned Android Auto experience, and a sweeping set of new security features.
Alphabet is counting on Gemini to help Google compete directly with OpenAI and Anthropic in the market for artificial intelligence models and services, while also serving as the AI backbone across its expansive portfolio of products, including Android. Meanwhile, Gemini is powering part of Apple’s new AI strategy, giving Google a role in the iPhone maker’s reset even as it races to prove its own version of personal AI on the phone is further along.
Sameer Samat, who oversees Google’s Android ecosystem, told CNBC that Google is rebuilding parts of Android around Gemini Intelligence to help users complete everyday tasks more easily.
“We’re transitioning from an operating system to an intelligence system,” he said.
As part of Tuesday’s announcements. Google said Gemini Intelligence will be able to move across apps, understand what’s on the screen and complete tasks that would normally require a user to jump between multiple services. That means Android is moving beyond the traditional assistant model, where users ask a question and get an answer, and acting more like an agent.
For instance, Google says Gemini can pull relevant information from Gmail, build shopping carts and book reservations. Samat gave the example of asking Gemini to look at the guest list for a barbecue, build a menu, add ingredients to an Instacart list and return for approval before checkout.
A big concern surrounding agentic AI involves software taking action on a user’s behalf without permissions. Samat said Gemini will come back to the user before completing a transaction, adding, “the human is always in the loop.”
Four months after announcing its Gemini deal with Google, Apple is under pressure to show a more capable version of Apple Intelligence, which has been a relative laggard on the market. Apple has long framed privacy, hardware integration and control of the user experience as its advantages.
Google’s Android push is designed to show it can bring AI deeper into the device experience while still giving users control over what Gemini can see, where it can act and when it needs confirmation.
The app automation features will roll out in waves, starting with the latest Samsung Galaxy and Google Pixel phones this summer, before expanding across more Android devices, including watches, cars, glasses and laptops later this year.
The company is also redesigning Android Auto around Gemini, turning the car into another major surface for its assistant. Android Auto is in more than 250 million cars, and Google says the new release includes its biggest maps update in a decade and Gemini-powered help with tasks like ordering dinner while driving.
Alphabet’s AI strategy has been embraced by Wall Street, which has pushed the company’s stock price up more than 140% in the past year, compared to Apple’s roughly 40% gain. Investors now want to see how Gemini can become more central to the products people use every day.
WATCH: Alphabet briefly tops Nvidia after report of $200 billion Anthropic cloud deal
Technologies
Waymo recalls 3,800 robotaxis after glitch allowed some vehicles to ‘drive into standing water’
Waymo issued a voluntary recall of about 3,800 of its robotaxis to fix software issues that could allow them to drive into flooded roadways.
Waymo is recalling about 3,800 robotaxis in the U.S. to fix software issues that could allow them to “drive onto a flooded roadway,” according to a letter on the National Highway Traffic Safety Administration’s website.
The voluntary recall is for Waymo vehicles that use the company’s fifth and sixth generation automated driving systems (or ADS), the U.S. auto safety regulator said in the letter posted Tuesday.
Waymo autonomous vehicles in Austin, Texas, were seen on camera driving onto a flooded street and stalling, requiring other drivers to navigate around them. It’s the latest example of a safety-related issue for the Alphabet-owned AV unit that’s rapidly bolstering its fleet of vehicles and entering new U.S. markets.
Waymo has drawn criticism for its vehicles failing to yield to school buses in Austin, and for the performance of its vehicles during widespread power outages in San Francisco in December, when robotaxis halted in traffic, causing gridlock.
The company said in a statement on Tuesday that it’s “identified an area of improvement regarding untraversable flooded lanes specific to higher-speed roadways,” and opted to file a “voluntary software recall” with the NHTSA.
“Waymo provides over half a million trips every week in some of the most challenging driving environments across the U.S., and safety is our primary priority,” the company said.
Waymo added that it’s working on “additional software safeguards” and has put “mitigations” in place, limiting where its robotaxis operate during extreme weather, so that they avoid “areas where flash flooding might occur” in periods of intense rain.
WATCH: Waymo launches new autonomous system in Chinese-made vehicle
Technologies
Qualcomm tumbles 13% as semiconductor stocks retreat from historic AI-fueled surge
Semiconductor equities reversed sharply after a broad AI-driven advance, with Qualcomm suffering its worst day since 2020 amid inflation concerns and rising oil prices.
Semiconductor stocks fell sharply on Tuesday, reversing course after an extensive rally that had expanded the artificial intelligence investment theme well past Nvidia and driven the industry to unprecedented levels.
Qualcomm plunged 13% and was on track for its steepest single-day decline since 2020. Intel shed 8%, while On Semiconductor and Skyworks Solutions each lost more than 6%. The iShares Semiconductor ETF, which benchmarks the overall sector, fell 5%.
The sell-off came after a key gauge of consumer prices came in above forecasts, and as conflict in Iran pushed crude oil higher—prompting investors to shift away from riskier assets.
The preceding advance had widened the AI opportunity set beyond longtime industry leader Nvidia, which for much of the past several years had largely carried the market to new peaks on its own.
Explosive appetite for central processing units, along with the graphics processing units that power large language models, has sent chipmakers to all-time highs.
Market participants are wagering that the shift from AI model training to autonomous agents will lift demand for additional AI hardware. Among the beneficiaries are memory chip producers, which are raising prices as supply remains tight.
Micron Technology slid 6%, and Sandisk cratered 8%. Sandisk’s stock has surged more than six times over since January.
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