Next-Gen XR Devices Are Getting Smaller as Meta Phoenix and Pico 5 Prepare New Form Factor

Next generation compact XR devices focus on glass-style designs, powerful processors, and spatial computing experiences.

Hardware by Katmin on Mar 05, 2026

Out of nowhere, the Meta Phoenix, the upcoming extra-small Quest successor, leaked in the firmware along with an image. At the same time, Pico is preparing the Pico 5, another extra-small headset expected to arrive this year.

As seen at CES, this year is shaping up to be a very particular moment for XR, with a totally new form factor entering the market.

Next-Gen XR Devices, Are Getting Smaller, Meta Phoenix and Pico 5, Prepare New Form Factor, NoobFeed

Meta Phoenix and the Future of Quest

Meta Phoenix is going to be the next iteration of the Quest devices. It will probably become what many will call the Quest 4 in the future, but the design is going to be very different from all the Quest headsets seen so far. Instead of the traditional VR headset style, the device will resemble a pair of glasses or goggles.

Phoenix is expected to weigh around 120g for the portion that sits on the face. Thanks to leaks from Luna and Mware, a first image of the upcoming headset appeared online.

The image itself is extremely low resolution, and even attempts to upscale it using AI are not particularly useful because the pixels can practically be counted. Even so, the shape clearly resembles a pair of glasses.

However, it is important to be careful with what appears online. Phoenix will not be a pair of AR glasses like some XR glasses or VR glasses currently on the market. Instead, the concept is closer to devices such as the Apple Vision Pro or the Samsung Galaxy XR, but significantly smaller. The computing hardware will not sit in the headset itself. Instead, the computing system will exist inside a small puck that users carry with them.

In practical terms, imagine something about the size of the Bigscreen Beyond connected with a cable to a compute unit containing an ARM processor similar to what currently powers the Quest platform, hopefully with greater performance.

Eye Tracking and Software Features

The firmware strings reveal some early software capabilities as well. One of the most notable features is the first-time setup process for eye-tracking calibration. Similar to what exists on other premium XR systems, users will look at different dots during the setup process to calibrate eye tracking.

There are also internal debug strings related to fit adjustments. The headset may provide feedback through eye-tracking data to indicate whether the device is worn correctly, helping users achieve the best visual clarity.

Release Timeline and Platform Integration

Despite the excitement around these leaks, the actual release may take longer than expected. Earlier reports suggest that Project Phoenix might launch in early 2027. There is still a possibility that an announcement could happen earlier at a future Connect event, but no official confirmation exists yet.

Many other details remain unknown. There is currently no clear information about passthrough quality or controllers. Much of the design appears to focus more heavily on hand tracking. In fact, another leak mentions a new system for moving within environments using hand tracking alone, including various instruction prompts. That feature will likely appear on the Quest platform first before eventually arriving on Phoenix.

Another capability hinted at in the code is support for Windows Mixed Reality-style functionality. This does not refer to the older generation of Windows Mixed Reality headsets. Instead, it suggests the ability to use the headset as a virtual desktop environment, including support for an ultrawide virtual monitor that allows viewing a PC display directly through the glasses.

Next-Gen XR Devices, Are Getting Smaller, Meta Phoenix and Pico 5, Prepare New Form Factor, NoobFeed

Display Technology and Pricing Expectations

When the focus moves toward spatial computing and virtual desktop use, display resolution becomes extremely important. Devices in this category typically require advanced display technology such as micro-OLED panels. These displays are necessary to maintain high clarity in a compact headset design.

The downside of such technology is cost. High-end XR devices that use micro-OLED displays, like those in the premium segment, come with higher prices. Expectations should remain realistic, because affordable VR has struggled recently, and the industry appears to be shifting toward premium XR hardware instead.

Pico’s Competing Project

Alongside Meta’s efforts, Pico has confirmed that it will showcase Project One together with the Pico 6. Project One is widely believed to become the Pico 5 or Pico 6, depending on final branding. The concept is very similar to Project Phoenix, but is expected to arrive earlier.

The headset portion will be extremely small, weighing around 100g, and will not contain its own computing hardware or battery. Instead, everything will be handled by an external compute pack connected through a cable.

One interesting detail is that Pico appears ready to begin developer support immediately. Instead of waiting for the next processor from Qualcomm, the company reportedly decided to develop its own processor for the system. The goal is to deliver more power than the XR2 Gen2 currently used across many XR devices, which has been in the market for quite some time.

Dual Chip Architecture

A dual-chip design akin to that found in expensive spatial computing devices is another feature that has been described. While the second chip controls cameras, sensors, and tracking devices, the first chipset will handle graphics and general processing duties. By separating these jobs, the system can run apps more effectively and lessen the strain on the main CPU.

Pico describes Project One as its flagship device for spatial computing. The platform aims to support a new generation of full-space and shared-space experiences. It introduces a new core operating system and development platform designed for both XR specialists and traditional app developers.

Developers will be able to build immersive applications as well as traditional flat apps that run within the spatial interface. Multiple apps will also be able to run simultaneously, enabling a primary immersive experience alongside companion applications in the same environment.

Shared environments are another key feature. These allow multiple users to see or interact with the same applications at the same time, which opens new possibilities for productivity and collaborative work.

Next-Gen XR Devices, Are Getting Smaller, Meta Phoenix and Pico 5, Prepare New Form Factor, NoobFeed

Developer Support and Display Advancements

Developers will receive tools for building applications using platforms such as Unity, Unreal Engine, and Pico’s own development tools. The introduction of these tools will allow existing apps and games to adapt more easily to spatial computing workflows.

On the hardware side, the headset is expected to feature micro-OLED displays with a resolution higher than the panels used in current premium XR devices. The display clarity is expected to reach around 40PPD, which likely means around 4K resolution per eye.

The design also aims to address brightness limitations that typically occur with pancake lenses. Some headsets experience vignetting around the edges, where the image becomes darker. Pico is reportedly using MLA technology along with optical compensation to create a more uniform visual experience.

That improvement could significantly enhance immersion. Some headsets with very high-resolution displays still suffer from visible edge darkening, which can break immersion during use.

Looking Ahead to the Next XR Generation

Pico has long been known for producing high-quality lenses. Earlier generations used Fresnel lenses, followed by strong pancake lens designs in later models. With the addition of MLA technology and improved optical design, the next generation of Pico hardware could deliver some of the most impressive visuals yet seen in XR.

At the same time, expectations about pricing should remain realistic. Advanced displays, powerful processors, and compact form factors all increase manufacturing costs. The shift toward premium XR devices means these headsets will likely come at higher prices than earlier consumer VR devices.

The coming years will reveal how the market responds to this new direction. With both Meta and Pico exploring lightweight headsets paired with external compute packs, the next generation of XR hardware may look very different from the bulky VR headsets people are used to today.

Also, check our other hardware articles: