Is There a Future for Magic Leap?

Magic Leap has been a company many people initially got excited about. The success of augmented reality still remains very limited, forcing the company to potentially try and find a new owner. 

The Future of Magic Leap

When virtual reality started making headlines, one major company was bold enough to go in a  different direction. Magic Leap claimed its augmented reality glasses would convince both consumers and corporations alike. What followed were very disappointing sales figures, and the company nearly disappeared into obscurity once again. 

Today, the company is still around. However, the current goal is to “sell itself” ahead of a potential listing. This is a very strategic move by the company, which leaves two possible options on the table. Either it forms a partnership with someone else, or they find a buyer for a stake in Magic Leap.

After being founded in 2011, Magic Leap hasn’t been able to convince the masses. This is despite spending $2.3 billion on the creation of its augmented reality glasses. The headset was, after numerous delays and issues, finally brought to market in 2018.

It never amounted to much of a success, however. The price tag of $2,295 is far too steep for most consumers to pony up. Even corporations are hesitant to explore these AR glasses at such a price point. 

Following the product launch, several thousand units were sold. The end result remains well below predictions by Magic Leap Rony Abovitz. He expected to sell 100,000 devices during the first six months after the launch. Ultimately, just around 6,000 found a new owner.

Due to this lackluster result, the company is seemingly in some financial trouble. Not too many details have been released at this time. Trying to sell itself shows that the future of this AR company may be in jeopardy altogether. A chance of direction business-wise may not be out of the question either..

By JP Buntinx

JP Buntinx is a FinTech, VR, and Bitcoin enthusiast living in Belgium.