Bloomberg: Apple's AR/VR Gaming Headset Plans Altered By Internal Divisions

Bloomberg's Mark Gurman this morning filed a story detailing the internal divisions at Apple that led it to change the course of its AR and VR headset development.

apple patent video goggle
Specifically, the report covers disagreements between former Apple design chief Jony Ive and Mike Rockwell, the executive heading up Apple's secretive 1,000-strong group devoted to VR and AR, regarding fundamental aspects of the headset, codenamed N301.

N301 was initially designed to be an ultra-powerful system, with graphics and processing speeds previously unheard of for a wearable product. The processing capabilities were so advanced—and produced so much heat—that the technology couldn’t be crammed into a sleek headset. Instead, Rockwell’s team planned to sell a stationary hub, which in prototype form resembled a small Mac, that would connect to the headset with a wireless signal. In Rockwell’s early version, the headset would also be able to operate in a less-powerful independent mode.

Ive balked at the prospect of selling a headset that would require a separate, stationary device for full functionality. He encouraged Rockwell and his team to redevelop N301 around the less powerful technology that could be embedded entirely in the device. Rockwell pushed back, arguing that a wireless hub would enable performance so superior that it would blow anything else on the market out of the water. The standoff lasted for months.

According to the report, Apple CEO Tim Cook ultimately sided with Ive, who didn't want Apple promoting technology that would take people out of the real world. As a result, the headset no longer communicates with a separate hub, making graphics unlikely to be as good as they might have been, and download speeds potentially slower.

Although the headset now in development is less technologically ambitious than originally intended, it's pretty advanced. It's designed to feature ultra-high-resolution screens that will make it almost impossible for a user to differentiate the virtual world from the real one. A cinematic speaker system will make the experience even more realistic, people who have used prototypes say.

Prototypes of the N301 are said to look like a smaller Oculus Quest, Facebook's VR headset, with a mostly fabric body but less plastic than the Quest. Apple's engineering teams are reportedly still testing the device on different head shapes to find the ideal fit, and the company hasn't settled on pricing.

Apple wants the headset to have its own App Store "with a focus on gaming and the ability to stream video content, while also serving as a sort of super-high-tech communications device for virtual meetings." Siri will control the headset, although it is also reportedly being tested with a physical remote.

The N301 headset appears to be only one of Apple's ongoing AR/VR projects. The other is said to be a pair of AR glasses codenamed N421, with current prototypes said to resemble high-priced sunglasses with "thick frames that house the battery and chips." Ive, who left Apple last year after almost three decades at the company, is said to have preferred the concept of the N421 glasses.

Apple's augmented reality headset is expected to be released in 2022 followed by the sleeker pair of augmented reality glasses coming in 2023. You can read the full Bloomberg report here, and for everything we know on Apple's AR/VR plans, be sure to check our dedicated roundup.

Related Roundup: Apple Vision Pro
Buyer's Guide: Vision Pro (Buy Now)
Related Forum: Apple Vision Pro

Popular Stories

maxresdefault

Apple Shows Off a Key Reason to Upgrade to the iPhone 17

Saturday February 7, 2026 9:26 am PST by
Apple today shared an ad that shows how the upgraded Center Stage front camera on the latest iPhones improves the process of taking a group selfie. "Watch how the new front facing camera on iPhone 17 Pro takes group selfies that automatically expand and rotate as more people come into frame," says Apple. While the ad is focused on the iPhone 17 Pro and iPhone 17 Pro Max, the regular iPhone...
apple wallet drivers license feature iPhone 15 pro

Apple Says These 7 U.S. States Plan to Offer iPhone Driver's Licenses

Monday February 9, 2026 6:24 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. The feature is currently available in 13 U.S. states and Puerto Rico, and it is expected to launch in at least seven more in the future. To set up the...
Apple Logo Zoomed

Apple Expected to Launch These 10+ Products Over the Coming Months

Tuesday February 10, 2026 6:33 am PST by
It has been a slow start to 2026 for Apple product launches, with only a new AirTag and a special Apple Watch band released so far. We are still waiting for MacBook Pro models with M5 Pro and M5 Max chips, the iPhone 17e, a lower-cost MacBook with an iPhone chip, long-rumored updates to the Apple TV and HomePod mini, and much more. Apple is expected to release/update the following products...
14 inch MacBook Pro Keyboard

New MacBook Pros Could Now Arrive in March

Sunday February 8, 2026 6:02 am PST by
New MacBook Pro models with the M5 Pro and M5 Max chips could arrive as soon as Monday, March 2, according to Bloomberg's Mark Gurman. In today's "Power On" newsletter, Gurman said that the release of new MacBook Pro models is tied to the release of macOS Tahoe 26.3. The launch is said to be slated for as early as the week of March 2. He added that the M4 Pro and M4 Max models on sale today...
wwdc sans text feature

Apple Rumored to Announce New Product on February 19

Thursday February 5, 2026 12:22 pm PST by
Apple plans to announce the iPhone 17e on Thursday, February 19, according to Macwelt, the German equivalent of Macworld. The report, citing industry sources, is available in English on Macworld. Apple announced the iPhone 16e on Wednesday, February 19 last year, so the iPhone 17e would be unveiled exactly one year later if this rumor is accurate. It is quite uncommon for Apple to unveil...

Top Rated Comments

ksec Avatar
74 months ago
Am I the only who is NOT excited about any of these AR / VR stuff.
Score: 23 Votes (Like | Disagree)
Piggie Avatar
74 months ago
Dear Jony, please go away, you have ruined so many Apple products by making them worse performing actual products just so you think they look nicer.
Go away, stay away and shut the F up.

I'd be more than happy with an additional computer unit, say that was attached to your belt or something if it means the headset can be lighter, and perhaps the compute unit can be boosted in time without needing to replace the headset part as well.
Score: 19 Votes (Like | Disagree)
kiranmk2 Avatar
74 months ago
I'm totally against Cook and Ive on this one. This discussion seems to be about a VR headset - I don't see the issue with having a box that communicates wirelessly with the headset - it's not like you are going to be leaving the room while using it and it they could get the size down to that of an 802.11ac AEBS it wouldn't be too bulk to move between locations.

Now an AR headset on the other hand is another matter and can't operate with a separate box (unless that box is your iPhone)...
Score: 19 Votes (Like | Disagree)
ian87w Avatar
74 months ago
I agree with Ive on this. Requiring a wearable to be tethered (albeit wirelessly) to a hub is just silly for a consumer product. That simply means the tech available is not ready yet.

The tethered to a hub version only make sense for a specific niche applications. Eg. Game arcades where they have a fixed room for the devices. Or a lab or hospital with fixed rooms. But Apple probably wanted this for consumers.
Score: 15 Votes (Like | Disagree)
hipnetic Avatar
74 months ago
Great...another example of Ive screwing things up thanks to his obsession with making things thinner.

The perfect VR headset/system just needs to be portable enough to be easily moved from one indoor space to another. No one uses these outdoors, as it isn’t safe to do so.
Score: 10 Votes (Like | Disagree)
mattspace Avatar
74 months ago
Although the headset now in development is less technologically ambitious than originally intended, it's pretty advanced. It's designed to feature ultra-high-resolution screens that will make it almost impossible for a user to differentiate the virtual world from the real one.
Calling total, utter bulls#$t on this.

Apple CEO Tim Cook ultimately sided with Ive, who didn't want Apple promoting technology that would take people out of the real world.
When you are sitting on a pile of wealth so obscenely large it would make Smaug feel awkward, yeah damn right you don't want to be taken out of your "real" world.
Score: 9 Votes (Like | Disagree)