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Virtual Arena #20 - The Shared Phygital Landscape – Part 1
In this first part of our specialist feature on the Immersive entertainment landscape, we look towards the deployment of AR, MR and SR technology. Defining the latest encumbered immersive attractions and game systems, while charting the trends that are shaping the sector.
This is the Virtual Arena, issue number 20, the Shared Fidgetal Landscape, part 2, by Kevin Williams. In this first part of our specialist feature on the immersive entertainment landscape, we look towards the deployment of AR, mr and SR technology, defining the latest encumbered immersive attractions and game systems, while charting the trends that are shaping the sector. The consumer sector seems to be pivoting away from overt VR applications while looking at an AR and MR future for immersive tech. As always, the LBE sector has been first to embrace this XR category. This feature will look at the key applications and those looking to roll out experiences and attractions based on both encumbered and unencumbered augmented technology, creating a fidgetal physical element married to digital representation playscape. First, we need to understand the difference between AR and MR.
Speaker 1:1. Defining XR categories Augmented reality AR encumbered mostly using a lens or glasses-based presentation to superimpose information into the user's vision regarding their environment spatially A lens-based see-through technique also known as waveguides, like the heads-up display for a fighter pilot. The technology has grown in application, with detailed imagery able to fill more of the user's vision holographically. Mixed reality MR encumbered mostly employs VR headsets that engulfs the user's vision and then, through front-mounted cameras, projects real-world image in real-time, superimposed with digital elements to create an immersive blend or mix of physical and digital, offering as higher level of immersion from a digital camera capture or pass-through compared to see-through Standalone headset tracking via onboard cameras, promoting greater MR application, shared reality, sr unencumbered, mostly employing projection systems but also now using LED display rooms, walls and floors. The user is placed within an environment where all the space is bathed in digital light. The need to track the user's movements within these spaces, achieved through employing of tracking technology such as markers or computer vision to capture and represent their progress in the virtual environment, which we will cover in detail in the second part of this feature. We have seen a blurring of the lines regarding the definition of AR and MR deployment as developers shape the terminology to fit their promotional needs. With the increased investment in MR capabilities for VR headsets, we have seen more manufacturers blur the lines, but at the same time, the hurdles that impacted developers of AR headsets and glasses have slowed consumer adoption. Most recently, microsoft and their HoloLens hardware range of AR headsets was discontinued by the corporation, though later stated they intend to still offer limited support and software updates till 2027. While we also must be mindful of the previous confused rise and subsequent departure of Magic Leap and their overhyped glasses.
Speaker 1:Second, immersive AR Attractions. Examples of successful AR installations have appeared in attractions and exhibits. At the Kansai Expo in Osaka, japan, the new Monster Hunter Bridge exhibition was launched. Based on Capcom's Monster Hunter game property, an immersive space experience has been developed which has guests walking within a LED XD hall enclosure with display and vibrating floor, while using Microsoft HoloLens 2 see-through AR headsets to view synthetic representations of the game's creatures. The Capcom Experience presents Japan's latest full AR attraction since the launch of Mario Kart Cooper's Challenge at Universal Studios' Super Nintendo World. This latest Capcom concept, marrying the LED surrounding display with the CGI supplied from the headsets worn by groups of visitors to the pavilion. No word if this experience will see greater deployment outside of Japan, but is an example of the leading application of this technology. As discussed in our sister publication, the Stinger Report coverage from the Game Developers Conference GDC25,.
Speaker 1:The team at Dream Park presented their AR Digital Theme Park concept, offering a virtual playscape and attraction platform, currently in beta phase operation at a disused 2,300 square foot parking lot in Los Angeles. Players using MetaQuest 3 headsets and their pass-through MR capability to interact with a digital representation of the playscape, offering a strong Mario vibe being run by the company and the team at 2-Bit Circus involved with plans to roll out the project. The company recently appearing on US television's Shark Tank to garner investment interest in the concept. Later, it was revealed that the team at Dream Park had managed to secure $1.1 million in seed funding led by Long Journey Ventures, the investment allowing the team to roll this and other digital applications out as a new line of attractions.
Speaker 1:One of the leading developers of AR-based experiences is Enclue, founded in 2019 and best known for their verse-immersive holographic theatre experiences, creating walk-through immersive adventures for groups of guests viewing holographic creatures and objects that are represented within the physical space interacting with through hand-tracking through hand tracking. Having previously operated their own facilities running the immersive experiences, the company has packaged the system into a turnkey solution that is being dropped into existing entertainment venues, such as with their partnership inside main event locations, guests wearing AR headsets, such as the Microsoft HoloLens 2, as well as others, to navigate the fidgetal environment as a standalone attraction. Enclu celebrated their entrance into the Cinetainment scene with their first theater installation, cinetainment, referring to the increased investment by the theater industry to add entertainment spaces to support their flagging movie ticket revenue. The D-Place Entertainment's Mary Pickford Theatre in California became the first cinema installation for the AR attraction, with an 800-square-foot space near the lobby converted to support the Verse Holographic Theatre. The walking augmented reality attraction is seen as a supporting entertainment to the seated big-screen theatre experience. Enclu have been working on defining their AR experience, utilising free spaces ranging from 600 square feet to 2,000 square feet, currently deployed across nearly 20 locations internationally. The company is also now looking at taking an ad agency approach, managing paid advertising for their experiences across their installed base.
Speaker 1:One aspect of the current attraction market has been a growing adoption of MR, one of the first being at Super Nintendo World using see-through technology, as we stated earlier. But with the growth in VR headsets supporting pass-through, we have seen a new growth in development. One of the latest VR headsets, the Pico 4 Ultra, has seen several developers deploying this system in MR mode. Portaventura World announced the opening of what they called the world's first MR roller coaster, entitled El Diablo Neo the Devil Neo. Riders wearing special Pico headsets on the coaster representing synthetic objects and creations interposed with the real-world visuals. The experience is an optional upscale extra for riders to buy, developed in partnership with Spatial Voyagers using AI in the creative process, this marking the first in the NEO series of MR attractions planned by the park. We will report later on other developers that are using the MR capability of the PICO hardware, which seems to have proven popular.
Speaker 1:Third, immersive AR sports. Melip was one of the first to roll out an AR-based headset game experience for location-based entertainment and activity deployment, and have achieved momentum both as a sports title and a general entertainment experience. The company using smartphone headsets supplying the AR visuals in pass-through mode, along with a player armband touchscreen in an eight-player PvP game. The operation has deployed some 10 Hado arenas and another 30 playing field and store installations internationally, the Hado platform offering a unique AR sports experience, dubbed TechnoSport by the company, with international competitions held across venues, such as at the Coventry UK Arena, these competitions culminating in the annual Hado World Cup that took place in Shanghai, china, at the end of May 2025. Under the tagline Hado Virtual Sports Festival, with some 18 countries competing, the US seeing a third place against second place South Korea and first place Japan, the competition being the highlight event of the Hado Virtual Sports Festival, this is one of the first AR sports to gain international recognition. Even if the media is slow to cover events, even if the media is slow to cover events. This follows the ESL Premiership, the UK's largest and longest-standing esports tournament, who partnered with Hado, hosting 12 teams as part of the ESL Face ET group esports gaming championship community, malip, defining the AR sports version of the platform as an esports-style business first founded in Japan during 2014. The Stinger Report, one of the first to report on its application, has seen Malip raise some $3.5 million in 2022 from China's QC investment, while at the same time signed exclusive agreements with Hado USA Technology Sports. Malip have also rolled out Hado Monster Battle, aimed at a younger audience, with a shooting gallery AR approach. The platform has also looked at the educational application of its physically active experience and announced the first academic program in college to study the creation of new sports that integrate physical activity. Shibura Institute of Technology becomes the first college in Japan to introduce the HADO platform to studies.
Speaker 1:A growing trend seeing a pivot to STEM-based deployment has grown in commercial XR developers as well as in eSports. We have seen MR pass through, used to enhance other entertainment applications such as the sport of laser tag. Development studio freeroamar has released their innovative Laser Limbo AR battle game Using the pass-through capabilities of the MetaQuest 3 headset and employing Striker VR weapons. The fast-paced, laser tag-inspired 8-player blaster offers a fun experience. The team brining a wealth of experience based on their previous work in the LBE VR scene, working on the popular LBE title Tower Tag. The ability to set this game up anywhere within a location, inside or out, offers a level of flexibility to offer MR as a pop-up revenue stream in small or big spaces, also including different game modes that include shooting other players or augmented drones all part of the Fidgetal appeal.
Speaker 1:One entertainment sport application that has been given a new lease of life thanks to XR technology has been go-karting. Motorized karting as a pastime can trace its adaption back to the 1950s, with the modern karting experience established in the 1970s. With the explosion of indoor e-karting, the technology has lent itself to being used as an MR platform. Regarding headset-based systems, we have seen numerous concept demonstrators, but very few actual fielded products. One of the first real deployments of a VR driving experience was from Spree Interactive with their VR bumper cars platform, partnered with Eurogames. But more recently we have seen actual VR go-kart platforms deployed, one of the first coming from Arduinna Silver Studios with their karting VR platform. The first installation of this was seen at the Big C facility in France, ekarting powered by full VR immersion through Pico headsets. Though not all the new applications go for full VR engagement. More recently we have now seen MR directly applied to karting. The Stinger report was one of the first to report on the Chinese karting services developer, anqi Amusement Equipment, who revealed the launch of their MR karting platform, implementing their e-karting platform to a MR experience, with the driver racing round a special course immersed via their Pico headset. Momentum in this aspect of the market has seen Western developers also start development of mixed reality karting platforms. It is interesting to reflect that the AR sports company Malap, which me covered previously, also developed their own karting-based AR experience to mixed results. Also revealed for the first time, raceparks, a leader in the go-karting business. Raceparks, a leader in the go-karting business, have developed MR GoKart, based on their premier mini-kart platform and employing Pico headsets in MR mode, offering a blending of the real-world raceway with virtual elements to gamify. The karting VR revealed their MR go-karting platform using the latest e-karting systems, again linked to Pico headset visuals overlaid over the real-world pass-through, creating a highly fidgetal environment. We will later, in the second part of this feature, look at the application of frictionless MR applications in the karting scene applying the latest projection technology.
Speaker 1:Fourth invasion of smart glasses. With the current situation in the consumer VR sector, many are now pivoting towards AR and MR development. Recently, we saw one hardware and firmware developer look to deploy their AR approach to the LBE market During the recent Amusement Expo International 2025,. Regarding the AR aspects of the market, we saw the appearance of SNAP, the Technology and Social Media Corporation, through their Spectacles division, developing their latest generation of AR glasses and operating system infrastructure. The company, last year, has rolled out their latest fifth generation of smart glasses what we have described as smartware and have looked towards the commercial and LBE sector as a springboard for user adoption. This is not the first foray into the LBE sector for the SNAP operation, having launched in 2017 SnapBot, a pop-up photo vending machine, but the move into the space with their AR glasses could prove a lifeline to previous HoloLens users, representing a considerable move by AR developer into the space. While companies like Vuzix Corp. A smart glasses, waveguides and AR technologies developer Corp. A smart glasses, waveguides and AR technologies developer, have announced the acquisition of an advanced waveguide R&D facility in Milpitas, california, scaling up commercial as well as consumer manufacturing capabilities as this sector grows. Meta and their Reality Labs division have focused on making wearable AR and MR mainstream consumer applications. Making wearable AR and MR mainstream consumer applications.
Speaker 1:Our sister publication has already reported on the over 100 ongoing layoffs that impacted Reality Labs in April 2025. These included departures from Oculus Studios and the other meta-acquired VR game studios. This news was followed the same month with the reporting of Q1 revenue for the division. This news was followed the same month with the reporting of Q1 revenue for the division, reported during the investors' call on the financial disclosure. The CFO revealed a drop in revenue from the division of some 6%, claiming this was due to lower meta-Quest sales. This is the first official indication that the Quest 3 and Quest 3S were underperforming in sales. Attempting to place a spin on the sales decline, the executive counted in the investor call that these lower-than-expected VR sales had been partially offset by increased sales of Ray-Ban Meta AI glasses. As many observers have voiced, meta has dropped using the VR term internally and we're now doubling down on AR-MR. What this will mean for the remaining consumer VR community has yet to be defined. The layoffs from the VR and Operation R and D teams were rumored to have placed in doubt a possible VR successor to the Quest 3 hardware for the near term.
Speaker 1:The social media and technology giant seeming to focus all current effort on its next generation AR Meta Smart Glasses, codenamed Hypernova. Set for a 2026 release to generate revenue light at the end of the tunnel. Regarding their MR interests, recent developments regarding focusing their Horizon OS to directly contest with the Samsung-slash-Google Android XR MR platforms soon to be launched. Also adding their name to the list of smart glasses development, lenovo revealed their plans. This year. The AR and MR landscape crowded with hopefuls, even Apple looking to enter the market with their own AR smart glasses with a custom chipset. Enter the market with their own AR smart glasses with a custom chipset, hoping to counter the less than stellar response to their previous Apple Vision Pro spatial computing headset. Along with Samsung, google and Meta, we also have Xreal One, pimax and Play for Dream MR Market, the pivot from VR to MR smartware Other than Snap. How many of these new headsets will be applicable for commercial entertainment deployment is yet to be seen. This concludes the first part of our two-part feature, the next part following shortly.
