When Magic Leap, a Google-backed start-up announced their first product, it promised a revolution. Their augmented reality glasses were expected to be a breakthrough in the tech industry, attracting investments that mounted $1.4 billion.

Magic Leap has attracted investiments that mounted $1.4 billion. Image Source: CNBC
Magic Leap has attracted investments that mounted $1.4 billion. Image Source: CNBC

It has been a few years now that the secretive company has been working on developing the pair of glasses, and after a couple of prototypes and a few spectacularly flashy marketing videos on Youtube, it looks now that not only Magic Leap is still far from having the product ready to market, but worse, when it comes out it may not live up to the high expectations investors and consumers were sold on.

A detailed report by The Information poured cold water on any assumption that Magic Leap’s glasses would be the next big thing. Not only it reveals that the technology falls short of all expectations but it goes further by revealing that the company misled the public and investors with their videos, at least one of them was actually created by a special effects studio. Even those that may not have used special effects don’t render the actual technology.

In fact, there is a close competitor to Magic Leap’s product - Microsoft’s HoloLens headset, which is already available in the market.

Microsoft's HoloLens is the closest competitor to Magic Leap. Image Source: Microsoft
Microsoft's HoloLens is the closest competitor to Magic Leap. Image Source: Microsoft

According to those who have been in contact with both products, the Washington State company’s product is a lot superior and can be bought for US$3,000. Magic Leap’s glasses on the other hand, are not expected to be available sooner than somewhere in the middle of next year, and still according to the report, they are having trouble making the technology fit smaller glasses than their bulky prototypes.

Another proof that Microsoft is way ahead in this new segment is that the fundamental technology is embedded into Windows 10, and manufacturers such as Acer, LeNovo, HP, Dell and Asus have already committed to build their own AR headsets which, according to Microsoft, will be available from US$299.

Magic Leap’s CEO Rony Abovitz says that Microsoft’s lead in the market is actually a good thing because they are creating the market for AR. In fact, Microsoft already has customers such as Volvo, Audi and Airbus.

It’s a brand new promising market and, unlike they did with smartphones, Microsoft is now an early mover and it’s taking the lead, while Magic Leap must work hard to catch up and fulfill its promises.

What do you think the AR market is leading up to? Are you interesting in either the Magic Leap or the HoloLens?Let us know in the comments and follow us on Facebook page for more interesting articles every day!