The XR Week Preview (February 10, 2025): Changes Ahead for the Meta Quest Store, Potential Apple Integration of PSVR 2 Controllers, and More!

I’m feeling much better these days, so this newsletter is back on schedule, which I’m thrilled about! The end of the week has been quite positive for me; professionally, I shared the scoop on camera access with Android XR (more details on that shortly), and personally, I managed to whip up some tasty Italian pasta for friends here in China, thanks to some ingredients I brought from home. Fingers crossed for another fantastic week, not just for me, but for all of you as well!

Top news of the week

The Meta Quest ecosystem is in a delicate phase

Henry Stockdale from Upload VR has penned a brilliant piece, shedding light on what’s currently happening with the Horizon Store. Ever since they merged the main store with App Lab and revamped the Meta Horizon OS and mobile app to spotlight Horizon Worlds, it’s become increasingly tough for Quest developers to get their games noticed. And without visibility, there’s no revenue. Many studios report losses between 50-80% compared to what they achieved in 2023. Developers have been voicing their frustrations for weeks now, and I even touched on this myself in a personal blog article not too long ago. We really need Meta to roll out an update to the Horizon Store that enhances the discovery of quality games rather than just pushing clones like Gorilla Tag, and constantly featuring Horizon Worlds creations.

Instead, Meta responded with a blog post touting what a fantastic year it’s been for Quest 3 and Quest 3S—something corroborated by Steam data—and suggesting that the store’s demographics are changing. Apparently, about two-thirds of headsets sold this year are to new users, and a lot of those users are kids. Naturally, kids don’t have a ton of disposable cash, so they lean towards free-to-play games, especially if they’re simple and amusing. And they’re satisfied with knock-offs of paid games available for free in Horizon Worlds. So, in essence, Meta seems to be saying that since we’re seeing an influx of young users seeking free content, that’s the direction we’re focusing on. If you’re developing premium games, well, best of luck to you.

Reading Meta’s response left me stunned. While it’s true that the XR ecosystem now includes a younger crowd keen on kid-centric content, something I’m happy to see as it bodes well for future growth, it’s equally essential for different user types to coexist. Given that Meta takes a 30% cut of every transaction, it should facilitate benefits for all developers, not just those focused on free-to-play titles. The uptick in kids on the platform isn’t new; we noticed this trend starting around 2022. However, developers only began to see a dramatic decline in revenue after Meta altered its store in mid-2024. Clearly, the issue lies with the store itself.

I’m curious about Meta’s next steps, especially considering the recent layoffs in some VR studios like SideQuest and nDreams. If Meta doesn’t address these issues, we developers might have to pivot to something like flat-screen content, as the Horizon Store’s current state isn’t sustainable. Should rivals such as Android XR emerge, we would likely migrate due to feeling let down by Meta. If they want their headsets to primarily support Horizon Worlds and similarly basic content, that’s their prerogative, but they risk losing the dynamic ecosystem of Quest creators they’ve nurtured over the past six years.

The community seems to largely back the developers in this situation. Some Reddit users are encouraging others to purchase more premium games and uninstall Horizon Worlds to avoid its content in search results.

Amid this turmoil, Mark Rabkin, Meta’s VP of XR, has left the company for family reasons. Unfortunately, the ongoing management reorganization isn’t helping to swiftly resolve this significant issue.

For more details: Upload VR’s article on Quest developers’ situation | My thoughts on the same issue | Meta’s perspective on the Quest Store’s evolution—Road To VR | Meta’s outlook on the store’s future—Upload VR | A humorous Reddit take on Meta’s blog post | Quest 3 and Quest 3S market gains on Steam | Mark Rabkin’s departure from Meta | Layoffs at nDreams | SideQuest layoffs | Reddit users championing premium content | A Reddit suggestion to uninstall Horizon Worlds

Other relevant news

Andrew Bosworth declares 2025 as the ‘make it or break it’ year for XR

One of the week’s most-discussed topics was Andrew Bosworth’s memo to Meta staff. The entire piece feels like a pep talk aimed at spurring Meta employees to work harder and more creatively to make XR succeed. A few points stand out that merit discussion.

Boz claims 2025 will be the "make it or break it" year for XR at Meta, which I personally find hard to believe. XR is still in its infancy, and I don’t foresee any groundbreaking events this year besides the release of Android XR headsets. Samsung’s offering, however, is priced too high to compete effectively with Meta. Meta is investing billions in XR, with plans to continue well into the 2030s. Zuckerberg himself hinted that the company’s XR expenditure could hit $100 billion this year. So frankly, it sounds like a motivational tactic rather than a factual statement.

Boz mentioned, “This year likely determines whether this entire [XR] effort will go down as the work of visionaries or a legendary misadventure.” This remark about possible failure has triggered speculation that Boz is setting the stage to justify further cuts in VR spending. Some even think Meta plans to shift away from VR to focus on smart glasses. I don’t buy into that theory. No savvy leader would telegraph failure to employees—it would drive them away. Plus, while Ray-Ban Meta glasses have sold a respectable one million units, that number isn’t enough to prove they’re going mainstream. Prioritizing an untested new market would be a foolish risk.

Boz also mentioned Meta plans to release “half a dozen wearables,” likely referring to upcoming smart glasses, watches, and neural smartbands. John Carmack read the memo and, while he appreciated it, had two critiques. First, he felt Boz should have mentioned both VR and MR, instead of just MR, to avoid the impression that VR is being sidelined. He also took issue with the emphasis on Horizon Worlds for mobile, which he views as distracting Meta from more pressing objectives.

For more information: Meta’s anticipated $100B XR investment | Boz’s leaked memo | Speculation on potential wearables from Upload VR | John Carmack’s thoughts on the memo

Apple still working on integrating PSVR 2 controllers

According to the ever-informative Marc Gurman, Apple is exploring ways to integrate PSVR 2 controllers with the Apple Vision Pro. These would be sold separately and remain optional, appealing primarily to users wanting gameplay that requires controllers on the Vision Pro. Currently, Sony doesn’t sell these controllers on their own, but should this collaboration be confirmed, that may change. While there’s no definitive timeline for a release, VisionOS 3’s reveal during June’s WWDC seems like a perfect opportunity.

For more information: More details here

Android XR promises camera access

Google confirmed to me that the Android XR OS will offer camera access much like smartphones do. Developers will have the ability to tap into both front and back cameras, as long as user permission is sought and granted via a popup. The headset’s front camera, which captures the world in front of the user, serves as the phone’s back camera, while an avatar’s face, created using the headset’s sensors, stands in for the selfie camera. This allows existing mobile apps to function as they do on mobiles, offering views of either the scenery or a user’s recreated face.

I’m thrilled by this news. Access to cameras is crucial for building genuine mixed reality experiences, and it’s refreshing to see Google adopting the same approach it uses for smartphones, ensuring the user is always in control regarding permissions.

For more information: Find out more here

News worth a mention

1. Quest Game Optimizer reaches 100K users – In a period where I often report on XR’s darker news, here’s a silver lining: Quest Game Optimizer is now used by 100,000 people. This app, which optimizes Quest settings for top-tier application performance, isn’t even on the store and needs sideloading! Big kudos to its developer.

2. John Carmack says Beat Saber eclipses Half-Life: Alyx for XR – On X, John Carmack remarked that "standalone VR was the most significant triumph for VR by a wide margin, and Beat Saber was more pivotal than Half-Life Alyx." I agree, especially in terms of user adoption. While both games are crucial, they target different audiences. Alyx was pivotal for hardcore gamers and showcased VR’s immersive potential.

3. Ray-Ban Meta Super Bowl ads are out – Check out Meta’s latest commercials promoting Ray-Ban Meta smart glasses featuring popular actors. Chris Hemsworth appears in one of them, and while it was entertaining, it wasn’t extraordinary. The pacing seemed off, and the humor was mild. Nonetheless, it might boost smart glass awareness.

4. Spatial.io ventures into gaming – Spatial.io, initially an enterprise meeting platform before shifting focus to NFT displays, is now turning heads with a game reminiscent of Gorilla Tag. Seems like their numerous pivots are finally paying off!

5. Civilization VII heads to VR – Sid Meier’s Civilization VII is arriving on Meta Quest, accompanied by the usual platforms. It will be available for both mixed reality and virtual reality. The Quest’s current audience might not be a perfect fit, but as someone who enjoyed Civilization II, it’s exciting.

Some content highlights

• Synth Riders is celebrating the Super Bowl with a Kendrick Lamar Experience on Apple Vision Pro.
• FRENZIES introduced a new event themed around the Super Bowl for Quest.
• Gorilla Tag marked its fourth anniversary with a Birthday Bash. Happy Birthday, GT!
• Harpagun, debuting on Quest on February 13, is a VR arcade shooter-smasher.
• Project Aeroes, a mixed reality game centered on guiding spaceships, is now available on Quest, priced at $9.99, though it’s free to download and keep until March 5 for “30 days only” of use.
• Boxed Out, a color-matching VR puzzle game, arrives on Quest on March 24.
• DIVR Labs unveils Aim Assault, a VR rail shooter, for demo on PC VR on February 13.
• Indie developers are working on Duet, a co-op game fostering nonverbal interaction, gradually building communication.
• Upload VR released their XR News Round-Up, featuring various tidbits from the XR realm.

For more details: Synth Riders | FRENZIES | Gorilla Tag | Harpagun | Project Aeroes | Boxed Out | Aim Assault | Duet | XR News Round-Up

Some review about content

COLD VR adds an interesting twist to SUPERHOT, but certain levels are quite exasperating and call for refinement.

For more information: COLD VR

Other news

• Steam now alerts users if early access games remain unchanged for over a year.
• Stereopsia merges with AWE Europe to form UnitedXR, staged in Brussels.
• Meta internally works on a "Desk Mode" for Meta AI on Quest, allowing AI queries even on standby, though its public launch remains uncertain.

News from partners (and friends)

Support the XR developers! Given the challenges facing XR developers, your support can make a huge difference. Buy a game or app, leave a glowing review, share your favorite game with friends, or promote it on social media. Your efforts are deeply appreciated!

Some XR fun

Why people love the UEVR universal mod – Funny link
The witty remarks on this post are priceless – Funny link
Got budget for a new headset? – Funny link
What men really desire – Funny link

Donate for good

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(A list of donors follows)

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(Header image by Meta)

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