Background
Operator XR, the defence and law enforcement simulation subsidiary of Australian-listed xReality Group (ASX: XRG), was engaged in September 2024 under a AU$5.6 million subcontract to develop an extended reality training capability for subterranean and subway environments. The contract was issued by Acrolect Solutions LLC (DBA Endurance Group), the prime contractor supporting the US Irregular Warfare Technical Support Directorate (IWTSD), which identifies, develops and fields capabilities for US Department of Defense irregular warfare operations.
The deployment
Over 20 months, Operator XR developed and delivered a mixed reality prototype that was formally accepted by the customer following final acceptance testing. End users confirmed the prototype's suitability for training in complex underground settings, and the system entered active end-user training as part of the contract's conclusion. Outstanding milestone payments of AU$0.85 million are expected by 30 June 2026.
Intermap Technologies was awarded a separate subcontract under the same Endurance Group prime to supply 3D geospatial mapping data supporting the subterranean platform.
Hardware and software
The commercialised system, MR-1, combines mixed reality headset integration with realistic physical training weapons and an offline-capable software architecture. The mixed reality approach allows trainees to retain full sight of their real-world surroundings while virtual characters, threats, props and environmental effects are overlaid. This enables training in actual operational locations including schools, transit hubs, military bases, critical infrastructure facilities and existing shoot house training centres.
MR-1 complements Operator XR's existing OP-2 virtual reality training platform, which supports mission planning and rehearsal in fully immersive VR.
Outcomes
The prototype's acceptance into end-user training validated the technology for mission-critical defence applications. Following project completion, MR-1 secured its first commercial sale to a separate US Department of Defense customer, announced in xReality Group's Quarterly Activities Report on 30 April 2026.
