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The XR Weekly Update (March 18, 2025): Niantic Sells Pokémon Go, Meta Unveils Passthrough APIs, and More!

by PixelReporter
March 18, 2025
in Virtual Reality
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This week has been a whirlwind of activity for me at work, but it’s all been in good spirits. Just when I thought my to-do list couldn’t get any longer, Meta launched camera access for Quest. Naturally, I couldn’t resist diving into it! Now, let’s delve into the most intriguing XR news of the week. Stick around till the end because there’s a giveaway you won’t want to miss!

Top News of the Week

Niantic Sells Its Gaming Division to Scopely

In a surprising move, Niantic has sold its gaming division, including the renowned Pokémon Go, to Scopely for a staggering $3.85 billion. With Scopely’s parent company partly owned by Saudi Arabia’s Public Investment Fund, Pokémon Go has found a new royal connection. Niantic is now shifting its focus towards geospatial technology, particularly AI, AR, and spatial intelligence, through a spin-off known as Niantic Spatial, backed by $250 million in funds.

This decision is a massive gamble for Niantic. While the sale figures look good on paper, they’ve parted with their biggest revenue source, Pokémon Go, and the promising Monster Hunt Now, to concentrate on a tech that isn’t yet a major money-maker. It’s a bold bet on the potential future profitability of XR—indicative of Niantic’s belief in AR’s lucrative prospects, possibly within the next few years. However, they’re taking this leap without Pokémon Go as a safety net. If AR’s adoption timeline stretches out longer than expected, it could spell trouble for the company. It’s a risky yet admirable pivot by CEO John Hanke, who’s doubling down on XR despite the risks involved. Respect to him for having the guts to make such a bold move.

Meta Releases Passthrough APIs for Quest 3/3S

Meta has officially launched its Passthrough APIs, allowing developers to access camera frames and enable mixed reality applications on Quest to adapt based on the user’s surroundings. This is accomplished by analyzing camera images through AI and ML models. The feature is now integrated into Quest and Quest 3S SDK and runtime, with a slew of official samples to demonstrate its potential.

Excitingly, the developer community is already deep into exploration, churning out tutorials and creative applications with this new tool. I’ve crafted a comprehensive guide on getting started with Passthrough Camera Access on my blog.

Although Passthrough Camera Access is considered experimental—preventing apps using it from being released on the Horizon Store—Meta typically removes such restrictions after a few months, so it’s only a matter of time.

The VR Games Showcase March 2025 – A Round-up of Announcements

Once again, the VR Games Showcase, led by Jamie Feltham, delivered a host of enticing updates in the realm of VR gaming. While there weren’t any show-stopping revelations, several announcements caught my eye:

  • "Stay: Forever Home" launches on Quest in April. The trailer featuring a virtual dog-like companion looks enticing.
  • "Hitman: World of Assassination" for PSVR 2 has a new trailer. The quality raises hopes that its March 27th launch will be stellar.
  • The sci-fi horror title "Memoreum" is slated for a September release on Quest—with a gripping new trailer.
  • "Slender: The Arrival VR" is set to terrify on PS VR2, PC VR, and Quest this spring.
  • Flat2VR Studios unveiled four upcoming titles—ports of flatscreen games—which follow their success with "Trombone Champ: Unflattened."

Dive into the links for the full suite of announcements.

Ultraleap Sold for Parts

In more somber news, Ultraleap is being dismantled. Known for its expertise in haptics and hand tracking, the startup is now a shadow of its former self. According to Sifted, Ultraleap has sold its hand-tracking tech to the musical instrument company Roli, with 30 employees laid off, and 24 joining Roli.

The startup’s IP related to haptics and hand-tracking has been acquired by US IP financing company SIM IP. Ultraleap’s silence on the matter suggests the claims are true. It appears they should have secured a buyout by a headset manufacturer earlier, especially since major XR brands are now developing internal hand-tracking tech.

Samsung’s New Headset to Include Motion Controllers

Samsung is making a move in the XR space with its Project Moohan headset set to feature first-party controllers, identified by the model number ET-OI610. Unlike Apple’s all-in approach to hand tracking, Samsung’s addition of controllers will facilitate easier content transition from other headsets, including Meta Quest, to their platform. This strategy will enrich Google’s content ecosystem quickly, and there’s speculation about whether controllers will come with the headset or be purchased separately.

Meta Struggles to Get Employees on Horizon Worlds

A report from New World Notes highlights key issues hindering Horizon Worlds’ success. Surprisingly, Meta developers lack enthusiasm for virtual worlds, often opting to fake app usage rather than genuinely engaging with it. Such metrics don’t bode well for Horizon Worlds, as many developers brought from other Meta apps lack passion for VR.

An anecdotal report noted the individual in charge of Horizon Worlds struggled to use a VR headset after three months on the project, highlighting a disconnect between the platform and its creators. Meta seems focused on Horizon Worlds, yet it might be more beneficial to enhance the entire Quest ecosystem instead.

Worth Mentioning

  • Google is reportedly acquiring AdHawk Microsystems for $115 million, a company that has unconventional eye-tracking technology.
  • Valve is working on a “SteamVR Link Dongle” for enhanced wireless VR connectivity.
  • Meta has added microgestures support in its SDK, enabling intricate interactions with MR applications.
  • Immersed’s Visor headset faces delays, contributing to ongoing speculation about its future.

The Shaky Future of VR

The VR market faces troubling times with closures and exits from key players. Phaser Lock, developers of "Primal Hunt" and "Final Assault," are closing due to economic challenges. Publisher People Can Fly is exiting VR game publishing, hinting at reduced investment from hardware manufacturers, likely Meta.

Futuristic Experiments and XR Innovations

From Cortical Labs building a $35,000 biological computer integrating living neurons and silicon, to dream-communications becoming a possibility, the horizon is brimming with futuristic endeavors.

MAGE Delivers High-Performance Physics on Quest

MAGE, an enchanting physics sandbox on Quest 3, boasts an engine capable of maintaining a solid 120Hz with complex graphical elements. Unlike general-purpose engines like Unity and Unreal, MAGE’s tailor-made engine delivers stunning performance.

Immersive Concert: Metallica for Apple Vision Pro

Apple has released an immersive Metallica concert from Mexico City, recorded in 8K 3D video and spatial audio, exclusively for Vision Pro—garnering mixed reviews on visual immersion quality.

SXSW 2025 Highlights Immersive Storytelling

SXSW 2025 celebrated immersive storytelling, with Charlie Fink providing an insightful breakdown of standout experiences worth reading.

Game Sales Alert

Don’t miss out on the ongoing sales on VR titles on Steam and the Horizon Store. This is your chance to snag iconic games like Half-Life: Alyx at a massive discount.

New Content and Reviews

A slew of new and exciting games is on the horizon, including "BEATABLE," a rhythm game with table-tapping mechanics, and the wheelchair-driven shooter "Quantum Threshold." Reviews are in for "Waltz Of The Wizard" on PSVR 2 and "Deep Cuts," an action movie simulator, among others.

Finally, some unfortunate news about a dongle being non-functional and the unveiling of prototypes for smart contact lenses by XPANCEO adds to this week’s developments.

Support for Ukraine

As always, let’s extend our thoughts and contributions to those in need in Ukraine. Consider donating to the Red Cross to support humanitarian relief efforts. A heartfelt thanks to all my Patreon supporters who continually help sustain this platform.

Stay curious, keep exploring, and spread the word among fellow innovators. Happy gaming!

Tags: UpdatePokémonMetaSellsUnveilsWeeklyMarchPassthroughNianticAPIs
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