Given that very first uploading a YouTube teaser video of its tech five years earlier, Magic Leap’s existence in the increased reality market has been questionable. Some have admired the group’s aspirations, while others I’ve talked to state the business’s posturing has actually discouraged investors from taking chances on other AR hardware startups, which has actually hampered the industry’s advance.
The business revealed layoffs today, with reports suggesting that it is dismissing around 1,000 staff members– about half of the company. Magic Leap’s added news of a major pivot to enterprise makes it appear like that wasn’t its main method over the previous year. From my point of view, the business appears like it is on a course to a fire sale and will depend on carrying out a dramatic turnaround, which grows harder under current financial conditions.
Magic Leap has couple of users, so a theoretical shutdown would likely have a lesser impact than other unicorn flare-outs; still, losing a business on the forefront of an innovation admired by many as the next ubiquitous platform will definitely impact others that are striving to bring this tech to market.
The effect for startups moving forward would be nuanced. Without a considerable software suite of its own, Magic Leap relied heavily on developer collaborations, though in recent months many of those appeared to promote enterprise usage cases. AR/VR start-ups are already in a rough position, and one less designer platform could require more business to de-prioritize headset-based platforms and move their focus to mobile.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.