Virtual and augmented reality were once heralded as the next major computing platform. But after tech giants poured at least $120 billion into the sector, the promised revolution has been slow to arrive. Ian Hamilton, former editor-in-chief of Upload VR and a veteran XR journalist, joined Charlie Fink and Rony Abovitz on the AI XR Podcast to dissect the industry's current state in 2026.
Hamilton pointed to several factors that have tempered expectations. While early investments from companies like Meta, Apple, and Google sparked a wave of innovation, consumer adoption has lagged. The high cost of headsets, limited killer apps, and unresolved ergonomic issues have kept VR and AR from becoming mainstream.
Key highlights from the discussion:
- Passthrough AR vs. Transparent Optics: Hamilton noted that Apple Vision Pro's passthrough technology offers a compelling experience, but transparent optics remain the holy grail for all-day wear.
- The Valve/Oculus Fork: The open platform vision of early Oculus was lost when Meta acquired the company, shifting focus toward a closed ecosystem.
- Empty Sound Stages: A Hollywood Reporter study revealed that runaway production, not AI, is primarily responsible for empty LA sound stages.
Despite the hurdles, the panelists agreed that XR is far from dead. Niche applications in enterprise, training, and specialized entertainment continue to grow. But the dream of an XR-powered future for the masses remains elusive — for now.