Whatever the “name of the game,” it’s going to have AR and VR written all throughout it. Here are some big happenings in that space…
The virtual and augmented reality gaming landscape continues to evolve, with several major acquisitions and product launches reshaping the industry in early 2025. Notable developments include Niantic‘s potential sale of Pokémon Go and HP‘s acquisition of Humane‘s AI technology assets.
Major industry shifts: Niantic is in negotiations to sell Pokémon Go to Scopely Inc. for approximately $3.5 billion, marking a significant change in the AR gaming space.
- The deal reflects challenges in AR gaming profitability, as Niantic must share substantial revenue with the Pokémon license holders
- Despite generating billions in annual revenue, Pokémon Go’s operational costs have impacted Niantic’s bottom line
- The company plans to focus on developing spatial intelligence through machine learning models, utilizing data from its gaming applications
Strategic acquisitions: Several significant mergers and acquisitions are reshaping the technology landscape.
- Brahma has acquired Metaphysic in a merger valuing Brahma at $1.43 billion, combining their AI content creation capabilities
- HP Inc. has purchased Humane for $116 million, though notably excluding the AI Pin device which will cease functioning by February 28, 2025
- Alpha3D has acquired MoonlanderAI to create the first platform-agnostic XR user-generated content community
Technical innovations: Microsoft has made a breakthrough in quantum computing with its Majorana 1 chip.
- The chip features eight topological qubits constructed from indium arsenide and aluminum
- Unlike traditional computing bits, qubits can exist in multiple states simultaneously, enabling more complex computational capabilities
- Microsoft is prioritizing long-term research over immediate commercialization, with the goal of developing a million-qubit system
Gaming developments: New VR titles and updates are expanding the market’s offerings.
- Another Axiom is launching Orion Drift, the sequel to Gorilla Tag, as a free-to-play title supporting up to 200 players
- Thief Simulator VR: Greenview Street has achieved impressive sales of 310,000 units on Meta Quest
- Take Two Interactive appears to be developing custom creator experiences for Grand Theft Auto, following Epic Games’ successful social gaming model
Market implications: The AR and VR industry is experiencing significant consolidation while simultaneously seeing new innovations and product launches.
- Large technology companies are acquiring smaller innovators to integrate their technologies into existing product lines
- Traditional gaming companies are expanding into social experiences and user-generated content
- The industry continues to face challenges in hardware adoption and profitability, leading to strategic pivots and consolidation
Looking ahead: While some early AR/VR ventures face challenges, the industry’s continued consolidation and strategic acquisitions suggest a maturation of the market rather than its decline, with established tech companies positioning themselves for long-term growth in spatial computing and AI-enhanced experiences.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...