The XR Weekly Recap (Feb 25, 2025): Niantic’s Potential Sale of Pokemon Go, Meta’s $50M Creator Fund for Horizon Worlds, & More!

Kicking off the week with a fresh batch of XR news that’s sure to pique your interest!

Weekly Highlights

Niantic Might Sell Its Gaming Division

A recent report from Bloomberg has revealed that Niantic is considering the sale of its gaming division to Saudi Arabian-owned Scopely, with discussions revolving around a potential $3.5 billion deal. Essentially, this could mean that "Pokémon Go" might soon be in new hands. This news is quite surprising given the massive success of "Pokémon Go," which despite waning hype, continues to generate significant revenue thanks to its dedicated fan base. Niantic has struggled to replicate this success with other games; even promising titles, like an AR Harry Potter game, didn’t stick around for long.

It’s definitely perplexing to see a company parting with such a successful asset – a real gem that keeps the business thriving by bringing in steady income and supporting new ventures. Besides money, "Pokémon Go" is also a rich resource of data that aids Niantic in perfecting its AR algorithms, particularly its VPS and world meshing (AR Cloud).

Analysts speculate that selling the gaming division allows Niantic to zero in on its "outdoor metaverse" vision, concentrating on providing AR services, potentially even catering to AR headsets. With $3.5B in cash and a streamlined focus, Niantic could make significant advancements in the AR field. While I see this as a bold, high-stakes move that I might not have dared to take myself given the risk, as someone invested in XR, I’m thrilled. This signals Niantic’s strong belief in XR’s future, possibly anticipating a surge in AR within the next three years.

Other Noteworthy Items

Meta Unveils a $50M Creator Fund for Horizon Worlds

Meta is pumping $50M into creator bonuses on Horizon Worlds. Each month, this fund will incentivize creators whose worlds contribute most notably to engagement, retention, and purchases. On March 11, Meta will kick off a competition with prizes up to $100,000, further enhancing creator tools with the new desktop editor, akin to game engines like Unity or Unreal, using Typescript for programming.

This news hits both good and tricky notes for me. It’s fantastic to see more support for creators and improved development tools, but the timing is rough. Amid declining visibility on the Horizon Store and developer layoffs, pouring more attention into Horizon Worlds feels ill-timed. Developers voice concerns that prioritizing Horizon is suffocating smaller startups and hindering the wider Quest ecosystem.

Additionally, the fund’s approach only rewards success, with no upfront support for projects, limiting its appeal to those who can afford to work without guaranteed returns. It seems geared towards building a Roblox-like environment, potentially sidelining professional developers. Moreover, while substantial investment hints at issues within Horizon’s creators’ ecosystem, ideally, a compelling product should naturally draw in engaging content. Yet, more investment for creators is still a positive step in my book, though Meta might need to rethink its strategy here.

Continuing XR Challenges

The XR industry faces tough times, with layoff news making headlines. Developers express ongoing dissatisfaction with the Meta Horizon Store’s visibility and quality of games offered. While some success stories exist, they’re increasingly rare:

• Metro Awakening: Despite good revenue and reviews, it didn’t meet Embracer Group’s expectations.

• Toast Interactive, creators of "Richie’s Plank Experience," downsized drastically due to poor Quest Store visibility affecting sales.

• User Frustration: On Reddit, user dissatisfaction with store offerings remains apparent.

• Schell Games Renaming: "Among Us VR" shifts to "Among Us 3D," with cross-platform play but no integration between 3D and 2D users, aiming for broader audiences beyond VR.

• On a brighter note, 3R Games announced "Thief Simulator VR" secured over 310,000 Quest sales, highlighting that success stories do exist amidst challenges.

More from Meta and XR Events

Meta’s Connect 2025 event is set for September 17-18. While a Quest 4 isn’t on the docket, expect new smart glasses from Oakley for athletes and Lenovo and ASUS updates for Horizon headsets, leaving AI announcements for their new LlamaCon event.

Brief Mentions

Palmer Luckey Talks Military Headsets

Palmer Luckey, in conversation with Shawn Ryan, revealed more about his upcoming military-focused headset, emphasizing its custom-built design integrating Anduril’s Lattice for heightened environmental awareness. He claims it surpasses existing AR/VR systems, promising unparalleled resolution, field of view, and versatility. His bold statements have us eagerly anticipating its full reveal.

In a move that’s sparked conversation, Meta’s CTO Andrew Bosworth now includes both MR and VR under the "MR" umbrella. This decision seems aligned more with competitive positioning against Apple than practical sense, leaving VR developers concerned about Meta’s focus on VR content.

Also in Meta’s pipeline, the Quest’s v74 runtime introduces useful updates like DisplayPort mode for external monitors, enhancing demo and exhibition capabilities. Additional features improve casting experiences, highlight player engagement, and expand environmental setup options.

Looking ahead, the VR Games Showcase is on March 11, promising insights into "Hitman: World of Assassination" and new offerings from Flat2VR Studios. Meanwhile, Humble Bundle provides a neat package for game developers, packed with resources for Unity, Unreal, and Godot.

Content Tidbits

• On February 27, "Detective VR" introduces a narrative-driven MR experience.
• March will see the release of the multiplayer zombie shooter, "Silent North," offering preorder discounts.
• PC VR and Quest game releases, like "Chronostrike" and multiplayer favorite "Orion Drift," come packed with engaging features.
• Anime enthusiasts can get excited for "Neon Genesis Evangelion," coming to XR in 2026.

In Review

• "One True Path – Part 1" and "Selina: Mind At Large" offer strong narrative experiences, despite some technical hiccups.
• "Realize Music: Sing," though promising, needs some performance tweaks.
• "Ashen Arrow" combines VR shooting with roguelite mechanics to solid effect.

Miscellaneous Tidbits

An article on Upload VR demonstrates how VR games shine with an RTX 5090, and there’s a comprehensive hand tracking comparison between PSVR 2 and Quest. Microsoft’s quantum chip progress and Tap With Us’s VR headset evolution video also make waves.

Extra Highlights

Indie game "Golden Kingdom" aims high, seeking to deliver an open-world RPG for PCVR enthusiasts. A free demo is available during Steam’s Next Fest.

Finally, on a lighter note, the internet offers some hilarious XR-related fun – an ongoing debate over AI capabilities, Meta insights, and a bit of satire here and there to enjoy.

Giving Back

In closing, let’s not forget the power of reaching out. This week, I encourage you to join me in donating to the Red Cross to aid those affected by the situation in Ukraine. A big thanks to all my Patreon supporters for making this journey possible. If you’d like to donate or learn more, links are just a click away.

(Header image by Niantic)

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