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

What a whirlwind of a week it’s been for me at work, and in a good way! Just when I thought my plate was already full, Meta released camera access for Quest, and, of course, I couldn’t resist diving right into it. Now, let’s explore some of the most fascinating developments in XR this week—and stay with me till the end because there’s a giveaway awaiting!

Top Stories of the Week

Niantic Sells Gaming Division to Scopely

Niantic has announced the sale of its entire gaming division, including the crown jewel, Pokémon Go, to Scopely for a whopping $3.85 billion. Reportedly, Scopely is backed by Saudi Arabia’s Public Investment Fund, essentially linking Pokémon Go with Saudi Arabia’s sovereign wealth. With this move, Niantic plans to double down on its geospatial technology, blending AI, AR, spatial intelligence, and geolocation, under a new spin-off called Niantic Spatial, which kicks off with $250 million in funding.

This decision is both audacious and high-stakes. While $3.85 billion is a staggering sum, parting with Pokémon Go, their most significant revenue source, and the up-and-coming Monster Hunt Now is a major risk. They are banking heavily on a future in XR technology. Although this move shows confidence in AR’s potential profitability, shedding such a successful property could spell trouble should AR adoption take longer than anticipated. Retaining Pokémon Go might have bolstered their impending glasses with a killer app. Regardless, John Hanke’s gutsy pivot is commendable.

For more details on the Niantic sale: Road to VR | Upload VR

Other Major News

Meta Unveils Passthrough APIs for Quest 3/3S

At long last, Meta has rolled out the Passthrough APIs. These APIs grant developers access to camera frames, allowing MR applications on Quest to perceive the user’s surroundings and adapt accordingly, often using AI/ML for image analysis.

This functionality, now in the Quest 3S SDK, comes alongside official samples to get developers started. Many have already begun experimenting, and content creators are sharing how-to guides. I even wrote a comprehensive blog post on getting started with Passthrough Camera Access.

Meta’s approach resembles Google’s promised direction with Android XR. Applications will need user permission to access the cameras, and developers will utilize familiar tools like Camera2 in Android and WebCamTexture in Unity, easing cross-platform app development between phones, Meta Quest, and other AndroidXR headsets. However, being an experimental feature, applications leveraging this can’t yet launch on the Horizon Store—though Meta typically lifts such restrictions after a few months.

More information: Roberto Coviello on Quest Camera Access | Upload VR

VR Games Showcase March 2025 Delivers Abundant XR Game Announcements

Once again, Jamie Feltham brought the VR Games Showcase, revealing a flurry of exciting VR gaming updates. While none were earth-shattering, several nuggets stood out. Below are a few highlights:

• Stay: Forever Home – This delightful VR/MR adventure, featuring a dog-like virtual companion, launches on Quest in April, supported by a new heartwarming trailer.
• Hitman: World of Assassination for PSVR 2 unveils its latest trailer ahead of its March 27th launch, offering hope for a stellar Hitman VR experience.
• September will see the release of Memoreum, a sci-fi survival horror game on Quest, teased with a riveting trailer.
• Slender: The Arrival VR goes multi-platform this spring, bringing Slenderman’s terror to PSVR 2, PC VR, and Quest.
• Flat2VR Studios announced four new titles, showcasing their confidence in porting flat games to VR after the success of “Trombone Champ: Unflattened”.

For further insights on these games: Upload VR

Ultraleap Assets Sold

In rather disheartening news, Ultraleap has been sold for parts. Previously a promising startup specializing in haptics and hand-tracking, it’s now merely a shadow of its former self.

Sources suggest Ultraleap’s hand-tracking technology has been sold to musical instrument company Roli, with 30 employees laid off. Intellectual property related to haptics and hand tracking is sold to SIM IP, a US IP financing entity. Ultraleap declined to comment, which typically indicates the reports hold water. It’s a shame they weren’t acquired by a headset manufacturer when hand tracking was a burgeoning field.

For more details, click here.

Samsung’s Project Moohan to Include Motion Controllers

Samsung appears to be crafting first-party handsets for its upcoming Project Moohan headset. Leaked references hint at controllers, indicating Samsung won’t rely solely on hand tracking like Apple. Uncertain if these controllers will be included with the headset, but their presence suggests Smart Porting from platforms like Meta Quest will be seamless. It’s a strategic move for quick content expansion.

More details: SamMobile Report

Meta’s Employee Struggle with Horizon Worlds

New World Notes illuminate issues plaguing Horizon Worlds, Meta’s pet "metaverse" project. Surprisingly, it turns out many developers lack enthusiasm for virtual worlds. Reports suggest employees pretended to use Horizon Worlds by taping over headset sensors. Meta’s staff evidently isn’t passionate about Horizon Worlds, and the lack of focus and expertise is showing.

Insiders mention how some team members, originally from social app teams like React, find the interfaces too web-centric for VR. This explains clumsy interfaces and clashing vision. If Horizon Worlds needs its leader taught how to use a VR headset months in, success seems distant. Meta should perhaps enhance its Quest system and foster the VR ecosystem instead.

Full story at New World Notes

Noteworthy Mentions

Google Eyes AdHawk

Per Bloomberg’s Mark Gurman, Google might acquire AdHawk Microsystems for $115 million, a company with innovative, camera-free eye-tracking technology. This system uses micromirrors to project lasers onto eyes. Without optical cameras, it’s less privacy-invasive and more energy-efficient, although less precise than traditional systems. The hefty price tag shows Google’s serious about XR.

Full story is here.

Valve’s New Wireless Dongle

Data mining hints at a "SteamVR Link Dongle" from Valve, offering a dedicated Wi-Fi link between a headset and PC, promising enhanced wireless PC VR performance. This could pair with the rumored Deckard headset, enhancing by expanding Steam Link compatibility across Pico and HTC devices. Good times for Steam VR fans!

For more info, go here.

Meta Rolls Out Micro-gesture Support

Beyond passthrough APIs, Meta now supports nuanced finger movements—microgestures—in its SDK, enabling subtle yet interactive user engagement with MR applications.

Check it out here.

Visor Production Delays

Immersed is pushing back its Visor production after summer—a delay owing to various production hiccups. Despite raising over $2M via Wefunder, with concerning financial disclosures, the company faces scrutiny. Lack of communication compounds issues with frustrated brand followers. Facing challenges is expected in hardware development, but transparency could engender goodwill within their community.

Read more: Wefunder.

More Companies Exiting VR

VR gaming sentiments dampen as several notable studios bow out from VR. Phaser Lock, known for Primal Hunt and Final Assault, is closing due to economic strains. Publisher People Can Fly announced they’ll exit VR game publishing by year-end, likely signaling Meta’s reduced financial engagement with VR gaming despite the Horizon Worlds endeavor.

More insights: Upload VR.

Futuristic Possibilities

I came across two jaw-dropping stories this week. First, Cortical Labs produced the CL1, a deployable bio-computer integrating neurons and silicon, priced at $35,000. Second, a breakthrough allowed communication between dreaming individuals. Imagine WhatsApp groups invading your dreams ten years from now!

Find out more: Cortical Labs | Dream Communication Experiment.

MAGE’s Supercharged Physics Simulations on Quest

MAGE, a sandbox game on Quest 3, showcases an unprecedented engine maintaining 120Hz while supporting dynamic elements, outperforming Unity or Unreal in its niche. An impressive feat for the game and a potential alliance for the indie development community.

Learn more here.

Apple Vision Pro Hosts Metallica

Apple Vision Pro users can now enjoy a Metallica concert captured in 8K 3D video with spatial audio, shot in Mexico City. Despite some critiques on the shooting style, the XR community is largely impressed.

More details here.

Explore Immersive Storytelling at SXSW 2025

SXSW 2025 was a treasure trove of immersive storytelling. Charlie Fink documented standout pieces, and his detailed coverage is definitely worth the read.

Explore further here.

Grab Great Deals on Steam and Quest

VR fans are in for a treat this week. Massive sales hit both Steam and the Horizon Store. Half-Life: Alyx is up for grabs with a generous 70% discount, knocking the price to an enticing $18. Now’s the perfect time for a VR game haul!

Sales info on Steam | Horizon Store

Content News Briefs

• BEATABLE is a rhythm game where you tap to the beat, dropping April 10.
• Path of Fury — Episode I: Tetsuo’s Tower is now on Quest for $10.
• Quantum Threshold, a VR roguelike shooter with wheelchair-focused gameplay, takes accessibility to new heights.
• Penguin Festival, a charming event simulator, hits Quest and Steam.
• Exoshock wins hearts with a fresh gameplay trailer for its tactical PvE shooter.
• RoboCop: Streets of Anarchy, an official VR installment, comes late 2025—arcade-exclusive though.

More details: BEATABLE | Quest Games

Content Reviews

• "Waltz Of The Wizard" on PSVR 2 with hand tracking offers enchanting experiences, but may glitch occasionally.
• "Deep Cuts" lets you creatively choreograph action scenes and is plenty fun.
• "Path of Fury — Episode I: Tetsuo’s Tower" feels like an action take on Beat Saber’s rhythmic fun.
• "Mythic Realms" is a refreshing MR combat game mixing kingdom-building with roguelike elements.
• "Pixel Dungeon" offers classic dungeon-crawling thrill and feels complete, even pre-updates.

Find reviews: Waltz of the Wizard | Deep Cuts

Other Notable Updates

• Vicon showcases markerless motion tracking at GDC.
• D-Link dongles now malfunction with Quest Air Link on recent Windows updates.
• Tyriel Wood assesses the True Gear suit, hailed as an affordable haptic solution.
• XPANCEO reveals promising smart contact lens prototypes.
• Brendan Iribe’s conversational AI venture, Sesame, earns accolades.

Explore more: GDC News | XPANCEO

Partner News and Giveaway

You’ve read the glowing review of Mythic Realms—a fantastic mixed and virtual reality delight for Quest. Here’s the good news: snag one of these two keys, quick!
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If you miss out on these freebies, consider supporting the developers by purchasing the game!
Get Mythic Realms on the Horizon Store.

XR Whimsical Fun

• Ever run out of space on your XR headset? Check this out for a laugh. Funny link
• What kind of simulator were you expecting? Satisfy your curiosity here
• VR enthusiasts: ever truly content? Discover more here
• Curious Palmer Luckey and Andrew Bosworth chat caught on tape. Funny link
• Younger generations compared? Find out here
• What if AI gets too smart for its own good? Here’s a thought

Consider Donating for a Noble Cause

In the spirit of giving, I encourage donating to assist those affected by war. Contribute to the Red Cross’s effort in Ukraine through the link below. Many thanks to my generous Patreon supporters:

Donation link: Support The Red Cross in Ukraine

(Header courtesy of Niantic)

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