The Stinger Report #1274 - Riding the XR Wave – Part 1

Focusing on the evolving XR landscape, highlighted by AWE’s focus on LBE XR innovation. The event showcased a shift towards dedicated showrooms, enterprise-driven applications, and new hardware like PICO’s Swan MR headset. Key trends include consolidation in VR content platforms, a surge in MR experiences such as DreamPark’s kits, and the rise of AR in entertainment, exemplified by meleap’s HADO and GLO’s virtual graffiti. Additionally, Snap’s high-priced Specs glasses signal strategic pivots amidst market challenges. The sector’s future hinges on scalable, hygienic hardware solutions, immersive experiences, and targeted community engagement, underscoring a maturing, investment-ready market.

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Transcript

Why AWE Matters Right Now

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This is the Stinger Report, issue number 1274, Riding the XR Wave, Part 1, by Kevin Williams. The need for dedicated showrooms for the opportunities for LBEXR in the sector has been a bone of contention. The need for events that share innovation and best practice, along with a change to meet with peers in the sector. But that are needed to be not pure self-promotional events for one operation or group, and that are away from a confused, inappropriate mix of other exhibitors. These needs have driven recent developments. A WELBEXR Gathering. The 17th Annual Augmented World Expo, AWE, has been the leading gathering point for the AR, VR, and all things immersive. Held at the Long Beach Convention Center, California during June, the event attracted over 250 exhibitors, drawing some 5,000 attendees. This year's theme, iSpatial, indicating the momentum in spatial computing. The exhibition floor reflecting this, with key trends on display representing AI smartware, AI-driven content, world modeling, along with the latest headsets and smart glasses. The definitive gathering for all things in the VR, AR, and XR sector, with a focus on commercial, innovation, and educational component for student participation, an event that encapsulates the community that has surrounded this immersive technology long before any Kickstarters. What some called the Festival of Festivals, AWE 26 comprised Expo mainstage presentations, along with smaller presentations and workshops, representing a detailed barometer of the state of the tech, reflecting the consumer VR bloodbath, gravy train derailment, and a pivot towards enterprise and a more focused future investment in XR. This year's AWE was close to the heart of the Stinger report.

The New LBEXR Zone Takes Shape

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In an agreement last year, the event organizers had enlisted the support and experience of owners KWP to establish a new LBEXR zone component to the AWE Expo, a zone that would be a companion to the gaming hub of the convention, including LBEXR exhibitors and dedicated conference session. We were also honoured to be asked to add our name to judging the LBEXR category added to the venerable Augie Awards, marking innovation and application across the sector. We all know how difficult it is to start a new approach, especially in trying conditions, and we were heartened regarding the support from the LBEXR community and the greater XR sector in supporting this new element to the show. We will break down the key relevant applications that were gathered at this year's event towards LBE and beyond. VR's New Deal, the AWE26 show floor, dedicated a special section towards both the gaming community in VR, but also our focus of LBEXR applications. This show space allowed several exhibitors to demonstrate their leading platforms, showcasing the reality of the out-of-home industry. Taking their own exhibition space was VR Cave, working in partnership with the Rabbit Hole VR over the installation and operation, the company running their latest multiplayer free-roaming VR Escape Gaming, proving popular with show attendees to experience this unique gaming environment. We had recently reported VR Cave's recent attendance at Transworld's Interactive Entertainment Show 2026 earlier in the year. Another free-roam multiplayer VR Arena exhibitor was Hololab Studio, presenting their latest game experience, Abyss Vault. The booth was operated in partnership with Synthesis VR, also employing Pico headsets, and showed a popular turnkey approach to the current generation of VR deployment in entertainment. These booths, reflecting the changes in the VR content distribution scene, have seen a consolidation in platforms. One example being Octopod VR, who has started the process of winding down its operation. Owned by Wanadev, who wanted to focus their resources on consumer game development and publishing, Octopod's LBE investment was impacting this. This saw Wanadev choose Synthesis VR towards partnering to represent their catalogue of games as their suite of features, complemented the Octopod platform, and enabled supporting existing customers. This is a similar approach seen recently taken by Vertigo Games, known for their Arizona Sunshine multiplayer VR Zombie Blaster, as

Free Roam VR And Platform Consolidation

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well as other titles through their LBE studio. The company partnered with Synthesis VR to have them represent their library through their VR Distributions extensive platform. Established Market Leader, Synthesis VR, represents a considerable library of over 400 games, ranging from PC VR Room Scale to standalone Freeroam, representing a leader in the PC VR market, with the ability to migrate into standalone using one platform, based on their extensive suite of tools, with support across MetaQuest, Pico, and HTC hardware platforms. At AWE26, Pico was one of the major sponsors of the Expo, also dedicated a major part of their presence towards promoting their LBE investment, both in supplying the predominant headset of the scene and in supporting further growth. An aspect of AWE26 is the amount of innovation and new tech being presented, much of which is presented behind closed doors in private hotel suite demonstrations. Pico were one of those demonstrating by invitation, the event being the first appearance in North America of the new Pico Swan MR headset. Other developers presenting behind closed doors included a representation from VR CENAL. Another aspect of the VR LBE business on display was from Thousand Bit, with the demonstration of their sinister in booth. This enclosed VR arena offered what can be best described as the world's first haunted walkthrough VR attraction, proving a compelling draw and demonstrating the new haunted house approach to VR and enjoyed by those trying it. This compelling approach reflects the Stinger Reports observations from the AAA 26 Expo in China for this kind of enclosure, borrowing on the proven scare formula. A major part of the AWE community is the social atmosphere and network opportunities of the event, with several after-show mixes held. Two such was focused on the LBE sector, the first being organized by Hololabs and Pan EQ Escape Room franchise, held at a local escape room venue close to the convention center, allowing invited guests to try the latest free roam experience and meet with fellow members of the scene. The second mixer was organized and sponsored by AWE and Cleanbox Technologies, again offering a chance for both the XR community and the LBE industry to socialize. MR makes an appearance. Away from just VR applications, AWE26 encapsulates all aspects of XR deployment, and the LBEXR zone also included MR innovation. One of the returning AWELBE exhibitors to the show floor was Dream Park. The company has been going through a transmogrification of their business, and AWE26 was the first chance to see the new business approach. The company at IAAPA25 had hinted at a pivot of their business plans away from permanent owned venues, towards a kit-based approach to deploying their concept. The two pop-up locations in Los Angeles and Seattle had supplied valuable information on the ability to charge a premium ticket for the MR experience. Now the operation focused on selling their experience

New Hardware Demos And Haunted VR

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as a kit for venues to deploy. During AWE26 Dream Park demonstrated the latest experience for their MR platform, a wizarding game called Wizard's Way, offering a wand-based magical experience within the virtually created environment. The company stated they are close to installing 20 of their kits with operators as standalone installations. These include centers such as Zoo Cade in Austin, Metaversive in Long Island, and a first public collaboration with the city of Santa Monica. Event operators are also looking to the platform, with sites live with a partnership in Japan and Morocco. While it debuted on the LBEXR zone show floor, was the new Dreambox prototype. A self-service kiosk vending headsets, the first of this unattended MR attraction, has been operational at Dave and Buster's in Hollywood. Dreampark took to the conference stage with the DB lead on this test installation, revealing details on how they have been operating this MR experience within their game hall. The stage session revealed the new direction and interest generated in this standalone MR approach. The team at Dreampark confirmed that the final productized version of the kiosk will use cleanbox UV sanitation in all 28 lockers. The MR experience landscape has grown since Dream Park's initial foray into the sector. The Stinger report was able to speak with a new entrant to the market called Fantail Games, the studio behind the new multiplayer mixed reality experience, Game Night. Following a party game format with seven mini-game experiences for frantic four-player engagement. Originally launched on the MetaQuest more as a consumer focus, the company has converted over to Pico Ultra headset for LBEMR support and has already seen several operators install the game. The team commenting that operators like to use this for birthday parties and kid-friendly audiences in a compact arena. While consumer MR games have not proven a major driver, in LBE it is finding an audience. Returning to the AWE 26

Mixed Reality Kits And Unattended Kiosks

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floor, and speaking of Cleanbox, the company was another AWE returning exhibitor and sponsor. An overarching element of the LBEXR representation is the focus not on hype, but on the realities of business and operation of the latest XR Tech. Cleanbox Technology exhibited their hygiene solution, especially on the show floor as so many demonstrations were taking place. The need for a robust cleaning and sterilization procedure underpinning the new professional approach to entertainment headset operation. Another new element to the AWE show floor was an immersive art installation with several special experiences on display via VR headset. The installation making use of clean box technology to ensure proper operation of VR headsets with a large audience throughput. Betting on AR, the success of AR in LBE was reflected at AWE by trailblazing exhibitor Meliap with their Hado Player versus Player AR sports platform. Famous in Asia for the championship and tournaments competition, the system uses first-generation AR headsets representing the players' virtual shield and fireballs launched at their opponents. A frantic game experience dubbed a virtual sport by its creators. Represented by the US sales agents during the Expo, with several Expo attendees doing battle. AR was represented also on the LBEXR show floor from GLO, the company known for developing their immersive gaming tours, currently operating tours along five blocks of New York City. At the show were running a demonstration of their GLO graffiti, allowing the user to create their own virtual masterpieces. A turnkey installation, the system was using Magic Leap 2 glasses, though the team behind the experience are looking at the next generation of AR headset they intend to deploy. Their application offers a pop-up installation capability to bring to any museum, gallery, private hire, or entertainment space. And we're now looking at the LBE sector as a strong opportunity for their platform. One of the big developments at AWE 26 was key sponsors and exhibitors Snap, and their Specs division launching their new entry into the AR smart glasses scene. A major media event surrounded the first day reveal of the new Specs Glasses, focused on the

AR Activations Plus Snap Specs Shock

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consumer scene, revealed at a $2,500 price point. The confirmation of the high price point sent ripples through the financial scene, impacted trading in Snapchares, seeing a drop in their stock price that has yet to rebound. A lot of effort went into promoting this new AR platform with special demonstrations. These included specs running an LBE-esque, AR demonstrator with the four-player game Block Battle, players stacking virtual blocks while sabotaging their opponent's pile. As previously reported in our AEI 26 coverage back in March, Snap had previously partnered with EncLU to be incorporated into the company's verse immersive operation. Prior to AWE26, the news broke that Enclu had entered US Chapter 7 liquidation and closed its operations. Some speculation was that the company had found it difficult to create a workable business model based on their AR holographic attraction platform. Original aspirations to run their own standalone sites had pivoted to deploying their experience as an attraction in existing venues. Having recently signed a multi-location global partnership with Ripley Entertainment, this would crumble with the liquidation of the operation, seeing some 25 installations closed. Sources suggesting that the final price of the Snap platform pushed the operation over the edge. A need for a new generation of AR smart glasses systems, suitable for deployment in LBE, driving new thinking from some manufacturers. Previously, the early LBEAR

What LBE Needs From Next Gen Glasses

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developers turned initially to first Gen 1 smartphone, then Magic Leap, and then Microsoft HoloLens platforms, only to be abandoned as these platforms were cancelled and their support evaporated. On the AWE 26 show floor, a number of new developers of enterprise and consumer capable AR smart glasses presented their platforms and turned towards a cost effective LBE sales future.