Magic Leap will stop selling and marketing its own products and focus exclusively on technology licensing.

Augmented reality company Magic Leap is laying off 75 employees and ceasing sales and marketing of its own products. Bloomberg knows this. Magic Leap will focus exclusively on selling technology licenses to other parties who want to incorporate the company’s innovations. It is unclear whether there are already any major licensing customers.

Magic Leap hoped to ride an AR wave in 2018 that never quite materialized. The company launched an AR headset that was meant to sit alongside the Microsoft Hololens. The headset was not a success: developers were not happy with it, and after a year only 6,000 units had been sold. The initial goal at launch was one million headsets, and was later adjusted to a still overly optimistic 100,000 units.

Metaverse

Magic Leap didn’t give up, but adapted its mission. The second iteration of the glasses would not be a consumer product, but was designed for businesses. These glasses were launched in late 2022. However, even amid the metaverse hype concocted by Mark Zuckerberg, Magic Leap was unable to capitalize on its product.

Now Magic Leap is adjusting its strategy again, although there is no longer a major plan for the future. Anonymous sources say investors would try to recoup some of Magic Leap’s value by focusing on technology licensing.