[rewrite this title] The XR Weekly Review (February 25, 2025): Niantic Considers Selling Pokemon Go, Meta Unveils $50M Creator Fund for Horizon Worlds, and More!

A new week has rolled in, and with it comes another exciting lineup of XR news to dive into!

Top News of the Week

Image by Niantic

Niantic Considers Selling its Gaming Division

In a surprising twist, reports from Bloomberg suggest Niantic is contemplating the sale of its gaming division to Saudi Arabia-owned Scopely for a staggering $3.5 billion. Yes, that’s right—it might mean Pokémon Go could soon belong to another company. This announcement shocked me. Pokémon Go, despite its initial hype fading, continues to rake in significant profits thanks to its dedicated fan base. However, Niantic hasn’t been able to replicate Pokémon Go’s success with other games. Even their promising AR game set in the Harry Potter universe fizzled out. It’s baffling that they’d consider parting with their crown jewel—one that not only generates substantial revenue but also provides invaluable AR data for algorithm training, specifically in VPS and world meshing. Analysts speculate that Niantic aims to pivot towards becoming a powerhouse in AR service provision, possibly even integrating AR headsets. This move, though bold and risky, positions Niantic to concentrate exclusively on AR, potentially driving significant advancements. As an entrepreneur, I’d tread cautiously on such a high-stakes decision. But as someone passionate about XR, Niantic’s audacious bet on AR suggests they believe its breakout moment is imminent, likely within the next few years.

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Other Relevant News

Image by Meta

Meta Unveils $50M Fund for Horizon Worlds

Meta has unveiled a generous $50 million fund aimed at creators developing for Horizon Worlds, its metaverse platform. Monthly bonuses will be dispensed to creators whose contributions significantly enrich the ecosystem, based on engagement metrics like time spent and in-world purchases. Kicking off this initiative, a world-building contest with rewards up to $100,000 will take place starting March 11. Meta is also enhancing Horizon Worlds’ development tools, allowing creators to transition from simplistic in-world creation tools to a more powerful desktop editor reminiscent of game engines like Unity or Unreal, complete with Typescript support. While it’s exciting to see Meta invest in creators, the timing is a bit ironic given current developer frustrations over visibility issues on the Horizon Store. With ongoing complaints, new layoffs, and op-eds suggesting scaling back on Horizon Worlds, the new fund, though likely planned in advance, seems almost jokey amidst the current discontent. Moreover, the fund’s distribution approach might not appeal to startups or small teams hesitant to commit effort without guaranteed rewards, contrasting with an ideal model that would support impressive pitches to nourish the XR ecosystem. Even though I find it commendable that more funds are being channeled towards creators, I feel Meta needs to rethink its strategic approach.

More info: Meta Fund, New Desktop Editor, Creator Payment Critique, Android Central Opinion

The Troubled Times in XR Persist

Amid ongoing concerns in the XR space, the disquiet continues, especially with developments around Meta’s Horizon Store. Developers struggle with game visibility, while users grow tired of finding more shovelware than quality games. Although success stories exist, they’re becoming scarce. Recently:

• Embracer Group revealed Metro Awakening’s financial performance was underwhelming despite good reviews.
• Toast Interactive, behind Richie’s Plank Experience, faced layoffs due to challenges including poor visibility for Max Mustard on the Quest Store.
• Users shared frustrations with Horizon Store’s search, finding subpar offerings.
• Schell Games rebranded Among Us VR and made it available on more platforms.
• 3R Games celebrated over 310,000 sales on Quest, proving some successes endure even amid industry woes.

More info: Metro Awakening, Toast Interactive, Horizon Store Discontent, Among Us VR Changes, Success of Thief Simulator

Meta Sets Dates for Connect 2025

Meta has scheduled its Connect event for September 17 and 18, 2025. While there’s still no agenda, we do anticipate updates on smart glasses, including collaborations with Oakley for athletes, and insights on Lenovo and ASUS-made Horizon headsets. The event won’t cover AI, as Meta plans to hold LlamaCon for AI advancements.

More info: Meta Connect 2025, Event Insights

News Worth a Mention

Image by Anduril

Insights from Palmer Luckey on His New Headset

In a chat with ex-Navy SEAL Shawn Ryan, Palmer Luckey spilled the beans on his military-focused headset. Designed from scratch for combat scenarios, it’s reportedly superior to existing devices like IVAS, offering unparalleled resolution, field of view, and sensor integration. As Luckey puts it, this innovation is a leap even greater than Oculus, potentially reshaping AR/VR/MR systems. I’m eager to experience its revolutionary features firsthand.

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Meta’s New Terminology: "MR" Enveloping Both MR and VR

Meta’s CTO Andrew Bosworth clarified that "MR" now broadly refers to both MR and VR in Meta’s lexicon. Personally, I find this confusing. Given that true MR combines real and virtual elements, lumping in VR doesn’t make sense. This seems like another instance of Meta mirroring Apple’s strategy, as Apple’s focus is strictly on MR. This shift leaves VR developers uneasy about their place in Meta’s future focus.

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DisplayPort Surprise in Meta Quest v74 Runtime

The latest Quest update introduces intriguing features, including "DisplayPort" mode. Initially, I hoped this meant connecting Quest to a PC’s DisplayPort for high-fidelity PCVR—alas, it’s for external monitor support via USB-C for superior mirroring, a boon for exhibitions. Other enhancements include improved casting and seamless room setups within homes.

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Exciting Line-Up for VR Games Showcase

Set for March 11, the upcoming VR Games Showcase will feature an enticing lineup, including PSVR 2 gameplay for Hitman: World of Assassination and promising debuts from Flat2VR Studios.

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Developer-Centric Humble Bundle

Humble Bundle is offering a great package for developers this time—the "All-In-One VR Game Dev Bundle." It’s packed with resources useful across Unity, Unreal, and Godot platforms.

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Content Headlines

• "Detective VR": A narrative-based MR game using passthrough for engaging crime-solving at home arrives Feb 27th for $30.
• "Silent North": Upcoming multiplayer VR shooter offers enticing preorders for March.
• "Chronostrike": Co-op gameplay infused with SUPERHOT-style mechanics now available on Meta Quest for $25.
• More upcoming and recently released XR content continues to expand the market, from innovative thrillers to nostalgic journeys.

More info: Detective VR, Silent North, Chronostrike, and more

Content Reviews

• "One True Path – Part 1": A compelling narrative VR experience by the creators of "A Fisherman’s Tale."
• "Realize Music: Sing": A chill karaoke VR venture with a robust song catalog, though struggling with tech issues.
• "Ashen Arrow": A roguelite-meets-shooter, delivering on gameplay innovation.
• "Selina: Mind At Large": A narrative trip marred by bugs, yet invites empathy for its protagonist.

Other News

• Review articles are floating around about VR games on high-end graphics cards like the RTX 5090.
• Apple’s VisionOS 2.4 heralds significant advancements in AI and user interaction.
• Comparisons of hand tracking between systems like the PSVR 2 and Quest are popping up.
• Microsoft is making headway in quantum chip development.
• Enhancements in VR headset evolution are well captured in recent comprehensive videos.

Partners and Friends

Golden Kingdom Emerges

Golden Kingdom, a new indie game, aspires to offer an open-world RPG experience rich in realistic graphics—a tantalizing prospect for PCVR fans. Try the demo available now on Steam as part of the Steam Next Fest.

Some XR Fun

• Debate over AI’s potential continues humorously.
• What if developers’ ideas were actually heard by Meta?
• Sometimes the sneaky moves, though frowned upon, just work!

Support a Good Cause

As we wrap up, while I usually champion support for my blog, today I’ll focus on humanitarian needs. Please consider donating to the Red Cross to help address the ongoing crisis in Ukraine. Before I sign off, I want to extend immense gratitude to all my Patreon supporters—they keep the XR passion alive and thriving.

Support The Red Cross in Ukraine

(Header image by Niantic)
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