Meta head display device debuts, or Apple's biggest competitor

Apple will immediately capture the premium segment, but the Meta will still dominate the cheaper segment.

Written by: Mark Gurman

Compilation: Heart of the Metaverse

The launch of Apple Inc.'s headset will undoubtedly be the biggest news in mixed reality this year. But Apple won't monopolize the market. Meta Platforms Inc. is the current leader in the XR space, merging augmented and virtual reality, and constantly updating its devices.

That would spark a war between the two companies over the headset, with an outcome that could resemble Apple's 15-year war with Google's Android over the smartphone industry. The iPhone rules the top of the market with its higher price and closed ecosystem. Android dominates the low-end market with a more open platform.

With the headset, Apple will immediately capture the high-end market -- headsets that cost over $2,000 -- but Meta will still dominate the cheaper market. Meta might even benefit from Apple helping popularize XR, using that clout to serve consumers who can't afford the top-of-the-line model.

The showdown will unfold over the next few months, with Apple launching its headset on June 5 and Meta planning to unveil its latest model in October. While Apple's device remains under wraps, I had the chance to test out Meta's upcoming model, the Quest 3.

I got hands-on with a prototype version of the headset, trying to see how it would compare to Apple's devices. And try out Quest 3's interface, video see-through mode, software features, and gaming features.

The device, code-named Eureka, feels lighter and thinner than the existing Quest 2 for 2020. The strap that holds it over the head seems a bit sturdier, and it uses fabric on the sides instead of the Quest 2's plastic.

The current model Meta Quest 2 was demonstrated at an event. Photographer: Bing Guan/Bloomberg

The front of the device is new. Instead of a bland looking gray exterior, there are three vertical pill-shaped sensor areas on the front. The left and right sensor areas each include a color video see-through camera (which lets you see part of the world around you) and a standard camera. That means it has two color cameras, as opposed to the non-color cameras on the Quest 2. The central sensor area includes a depth sensor, a first for Quest.

There's a tracking camera on each of the lower front of the headset, while the bottom has a volume rocker and a scroll wheel for adjusting the headset's IPD (distance between pupils). This is a big improvement over the Quest 2, which required you to take off the headset and manually move the VR display inside the device. The power button and USB-C port remain on the side of the headset.

The actual clarity and feel of the VR display in Quest 3 is similar to that in Quest 2--though the resolution is rumored to be slightly higher. But there are two major improvements: Mixed Reality video perspective and faster performance on devices.

Video see-through is at the heart of mixed reality. It relies on external cameras to let the headset wearer see real-time video of the real world, creating augmented reality effects without the need for transparent lenses. While I don't believe the Quest 3's video see-through performance will come close to that of the Apple device (which will have about a dozen cameras), it's an upgrade over the Quest 2 already.

Thanks to the dual RGB color cameras, video perspective on Quest 3 renders colors more accurately and provides an almost photorealistic rendering of the real world. I can even use my phone while wearing the headset, which is not normally possible on the Quest 2.

The speed of navigating through the device interface, launching apps and playing games also feels vastly improved over the Quest 2. That's because the headset includes Qualcomm's second-generation Snapdragon XR2 chip.

While Meta hasn't found a "killer app" for its headset yet, the company does have a years-long advantage over Apple in building top-tier games for VR. Apple will try to challenge that by providing access to hundreds of thousands of iPad apps and rolling out tools that can easily convert iOS and iPadOS software into xrOS games.

Like the current Quest, the upcoming model is controlled by left and right hand remotes and in-air hand tracking. Unlike Apple devices and the higher-end Quest Pro, the Quest 3 lacks face and eye tracking. It also means it doesn't have so-called eye-tracking foveated rendering, which allows the system to focus its resources more precisely where the user is looking.

The Quest 3's hand control has been redesigned to look similar to the remote that came with the Quest Pro. These gray components are missing the large ring at the top of the Quest 2 version. They also lack the cameras on the Quest Pro controllers. That means new remotes can have a hard time figuring out where they are in space, which could hinder some games. Meta is looking to improve on this with various other tracking improvements.

Depth sensors on the headset power what's known as environment meshing. This allows the device to automatically recognize surrounding walls For example, you could play a game where you shoot objects from walls or cover your environment with a digital skin. What's more, you don't have to manually determine the position of each wall in the house - the method used in the current Quest.

Meta hasn't confirmed pricing for the device, but those involved in its development think it could be higher than the Quest 2's $400. There's also an argument that the Quest 2 might live on at a lower price point. But since the first version bombed, a second-generation Quest Pro probably won't be coming anytime soon.

Overall, I'm impressed with Quest 3's mixed reality focus, vastly improved video see-through capabilities, faster performance, and massive content library. Assuming the device costs around $500, it's about one-fifth the price of Apple's headset -- but more than one-fifth the appeal. With that in mind, I think the Quest 3 could generate some buzz this holiday season, especially considering XR is top of mind for consumers.