What is XR Design and Why Should Product Designers Care?

XR is moving fast. I remember seeing IKEA’s ‘Space’ product years ago and it made total sense. Cut to today and there are tons of great XR design examples – all designed to enhance our experience in what problem is being solved.

Product design is constantly evolving, with new technologies and paradigms emerging at a pace that can feel daunting. XR (Extended Reality), a catch-all term that includes Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) is one such paradigm. For product designers, understanding XR is no longer optional – it’s becoming an essential skill to remain competitive.

But what exactly is XR design, and why should it matter to product designers?

What is XR Design?

At its core, XR design involves crafting user experiences in immersive, spatial environments. Unlike traditional screen-based interfaces, XR blurs the lines between the physical and digital worlds. For example:

  • Virtual Reality (VR): Fully immersive environments experienced through headsets like the Meta Quest 3 or HTC Vive.
  • Augmented Reality (AR): Overlaying digital elements onto the real world, as seen in apps like IKEA Place or AR-enhanced advertisements.
  • Mixed Reality (MR): A hybrid where digital and physical elements interact in real-time, exemplified by devices like Apple’s Vision Pro or Microsoft’s HoloLens.

Designing for XR means considering not just what users see, but how they move, interact, and exist within these experiences. It’s an entirely new frontier for product designers accustomed to 2D screens and touch-based interactions.

Why Should Product Designers Learn XR Design?

1. The Future is Immersive

Consumer and enterprise adoption of XR technologies is on the rise. Industries ranging from gaming to healthcare, real estate to retail, are investing heavily in XR to create more engaging and impactful user experiences. Understanding XR design ensures you’re ready to contribute to this growing market.

2. New Design Challenges

XR introduces a host of new design considerations:

  • Spatial Interaction: How do users interact with objects in a 3D space?
  • Accessibility: How do you ensure XR experiences are inclusive?
  • Context Awareness: How do digital elements adapt to physical environments?

These challenges push the boundaries of traditional product design and open up exciting creative opportunities.

3. Cross-Pollination of Skills

The principles of XR design can inform your work in traditional interfaces. For example, AR’s emphasis on context-sensitive design can inspire better personalisation in mobile apps. Similarly, the spatial understanding required in VR can enhance the way you approach information architecture. Even if you’re not designing yet for these experiences it really honestly helps if you’re able to understand the context in which your users may interact with OTHER products. Their expectations may be influenced accordingly!

Examples of XR Design in Action

Over the past year, XR has delivered groundbreaking innovations that illustrate its potential:

  • Accenture’s Virtual Campus for Employee Onboarding: Accenture developed a virtual campus to onboard 150,000 new employees remotely, enhancing engagement and reducing onboarding time. (Read more)
  • Meta Quest 3 and Apple’s Vision Pro: These XR wearables are revolutionising sectors such as mental health and education by providing immersive experiences. Although of course with rumours of production being halted on Apple’s Vision Pro the jury is out at present! (Learn more)
  • Pepsi’s AR Advertising: Pepsi created an augmented reality bus stop advert where a lion walked through the bus shelter in real time, significantly increasing viewer engagement. (Discover more)
  • Volkswagen’s VR Presentation Models: Volkswagen reduced physical prototyping by over 50% using VR presentation models, streamlining their design process. (Find out more)
  • Charlotte Tilbury’s AR Makeup Mirrors: The brand’s makeup stores feature AR mirrors that enable virtual try-ons, boosting sales conversion by four times. (Explore this case)

How to Start Learning XR Design

Getting started with XR design might feel overwhelming, but the good news is that the skills are accessible. Here are a few steps to kickstart your journey:

  1. Experiment with XR Tools

    Tools like Unity, Unreal Engine, and WebXR allow designers to prototype and build XR experiences. Figma is also starting to incorporate 3D elements, bridging the gap between 2D and XR design.

  2. Understand XR Design Principles

    Familiarise yourself with concepts like spatial anchoring, gaze-based interaction, and environmental storytelling. Resources such as NNGroup’s insights on AR and VR design are a great starting point.

  3. Immerse Yourself in XR Experiences

    The best way to learn is by experiencing XR yourself. Try out VR games, AR apps, and MR tools to understand what works (and what doesn’t). The cost of some of the devices is not too painful either.

  4. Stay Curious

    Follow XR design communities, attend webinars, and explore case studies. The field is evolving quickly, and staying informed is key.

Why Now is the Time to Dive In

XR is not a passing trend; it’s a fundamental shift in how we interact with technology. Product designers should realise that the JTBD principle applies here in product development. The emotive need of users will always remain but the way in which they achieve that will change over time! Whether you’re designing an AR feature for a mobile app or brainstorming the next big VR platform, the skills you gain in XR design will future-proof your career.

The XR revolution is here. Are you ready to design for it?

Let’s Discuss!

Looking for help navigating the transition into XR design or building your product? Get in touch to learn how I can support you on your journey.