The XR Weekly Update (Feb 25, 2025): Potential Sale of Pokemon Go by Niantic, Meta Unveils $50M Creator Fund for Horizon Worlds, and More!

A fresh week brings with it a new wave of XR news just waiting to be explored.

Highlights from This Week

Niantic Considers Selling Its Gaming Arm

The latest buzz from Bloomberg suggests that Niantic is in discussions with Saudi Arabia’s Scopely to potentially sell its gaming division for a hefty $3.5 billion. Yes, you heard that right—this could mean that Pokémon Go might switch hands! Given Pokémon Go’s ongoing popularity and revenue generation, the idea of Niantic parting with such a pivotal asset is quite baffling. The company hasn’t been able to replicate the game’s success with other ventures—take their short-lived Harry Potter AR game, for instance. Essentially, Niantic seems to be contemplating unloading its golden goose to chase a bigger dream: creating an “outdoor metaverse.” This bold step, backed by a significant cash injection, might propel Niantic into the forefront of AR tech, but it’s undoubtedly a high-stakes gamble. While the entrepreneur in me balks at the risk, the XR enthusiast in me applauds their audacity. If Niantic is betting big on AR now, it must mean they foresee a seismic shift towards AR in the near future.

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Additional Noteworthy News

Meta Unveils $50M Fund for Horizon Worlds Creators

Meta is on a mission to enrich its metaverse platform Horizon Worlds, announcing a $50 million fund aimed at rewarding creators. Bonuses will be dished out to those driving engagement across various metrics like time spent, retention, and in-world sales. Additionally, there’s a world-building contest lined up with prizes reaching as high as $100,000. On top of that, Meta is rolling out an enhanced desktop editor for Horizon Worlds akin to game engines like Unity, making it easier for creators to build aesthetically pleasing and more interactive worlds. While the initiative sounds promising, it has its downsides. Debuting at a time when XR developers are protesting over visibility issues on the store seems ironic. Plus, the chosen method for fund distribution might inadvertently ignore startups, potentially replicating a Roblox-like ecosystem where only a few reap substantial rewards. Despite these reservations, the infusion of financial support into the system is a good move. However, a broader strategy may be necessary to prevent alienating the existing dev community.

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Continuing Challenges in the XR Sphere

The XR industry continues to face hurdles, with layoffs making headlines and ongoing Store issues frustrating both developers and users. Successful ventures are becoming less frequent, yet there are still some notable triumphs, offering a glimmer of hope.

• Embracer Group announced that "Metro Awakening" fell short of financial expectations, though it did achieve positive reviews.
• Toast Interactive, creators of "Richie’s Plank Experience," has had to scale back due to poor visibility on the Quest Store affecting sales.
• Community feedback highlights dissatisfaction with the Horizon Store’s search results and available content.
• On a brighter note, 3R Games reported impressive sales for "Thief Simulator VR: Greenview Street" on Quest.

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Upcoming Meta Connect 2025

Meta’s annual Connect event is slated for September 17-18. While a Quest 4 reveal is unlikely, we can expect to see new smart glasses, developments on Horizon headsets, and additional updates, though AI news will be reserved for the newly announced LlamaCon.

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News Briefs to Note

Palmer Luckey’s Military AR Device Insight

In an engaging discussion with former Navy SEAL Shawn Ryan, Palmer Luckey shed light on his military-oriented headset project, emphasizing its custom-built nature and advanced integration capabilities with Anduril’s Lattice. His confidence in its potential is palpable, suggesting it marks an advancement even greater than the inception of Oculus.

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Meta’s Rebranding Tactics Stir Confusion

Meta, under CTO Andrew Bosworth’s directive, has decided to encompass both MR and VR under the term “MR.” While this might seem like a strategic alignment with Apple’s nomenclature, it leaves many in the VR sector concerned about their future focus.

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Quest v74 Update Introduces DisplayPort Output

The newest Quest runtime brings some compelling features. Notably, the addition of DisplayPort output can now support high-quality mirroring on an external monitor via USB-C, a boon for exhibitions. Other enhancements include improved VR-casting experiences and normalized 2D window functionality.

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Awaiting the VR Games Showcase on March 11

March 11 promises to be an exciting day with the VR Games Showcase featuring games such as "Hitman: World of Assassination" on PSVR 2, as well as other highly anticipated VR titles.

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Developer’s Delight: Humble Bundle

The "All-In-One VR Game Dev Bundle" from Humble Bundle is an enticing opportunity for developers, packed with resources for Unity, Unreal, and Godot engines.

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Content Updates and Reviews

• "Detective VR" offers a unique narrative mystery experience turning your living room into a crime scene investigation with its Passthrough mode.
• "Silent North," a multiplayer zombie shooter, awaits its March release.
• "Chronostrike" offers cooperative play inspired by SUPERHOT, available now on Meta Quest.
• Upcoming and current VR games continually expand content offering intriguing narratives, innovative mechanics, and nostalgic crossovers.

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A Few More Tidbits

• Upload VR showcases stunning VR graphics with the RTX 5090.
• VisionOS 2.4 updates for Apple’s intelligence features are on the horizon.
• Comprehensive hand-tracking comparisons between PSVR 2 and Quest provide insights into evolving tech.

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Partner Update

Discover "Golden Kingdom," an ambitious indie RPG that promises spectacular open-world gameplay with a free demo during the Steam Next Fest.

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A Bit of Humor in the XR World

Check out these clever links for a chuckle or two: "AI might do this or that," "Meta hearing us developers," and, "Technically a war crime, but effective…"

Support a Noble Cause

Instead of supporting my blog, I’m directing this week’s donation plea toward aiding those affected by ongoing conflict in Ukraine. Your contributions to the Red Cross can bring significant relief in these challenging times.

[Donate to The Red Cross in Ukraine]

(Header image courtesy of Niantic)