Magic Leap has something better than a product: Potential - CNET

"Magic Leap is not VR. VR is focused right now narrowly on gaming and is not portable. Our Mixed Reality Lightfield is portable and has many multiple applications -- including gaming -- that are considerably broader," he said Tuesday. "These applications can be applied both inside and outside the home and office."

Reality-plus technology could be a $120 billion business by 2020, according to Digi-Capital, a research firm. That's part of the reason why the latest round of funding pushed Magic Leap's value so high.

Of course, Magic Leap isn't the only one chasing the opportunity. The list of reality plus competitors is big. Samsung's $99 Gear VR went on sale last year and the $599 Oculus Rift is scheduled to hit stores in March. Google created a VR device called Cardboard that slots in your phone. It sells for about $20, though you can build your own with some cardboard, tape and time. All these gadgets/goggles aim to shut out the real world and trick your brain into accepting the reality they want you to see.

Meanwhile, Microsoft makes the HoloLens, which layers computer images onto the real world like Magic Leap. The company's currently selling prototypes to developers, though it hasn't set a date for hitting store shelves.

Tech insiders have gotten a chance to play with these devices, including CNET's Scott Stein, who once cried because the images he saw were so powerful.

Few people know for sure if Magic Leap is better or even all that different from other devices about to hit the market. But no one seems to think the hype is misplaced either, even though Zuck has tried to tone down expectations, saying initial sales could be slow.

Brian Blau, an analyst at Gartner who once worked for a VR company, said the news that Magic Leap will be using some of its investment on manufacturing the technology is a good sign. Historically, making these devices -- particularly their displays -- has been the hardest part because they're so specialized.