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We changed the newsletter's name. We hope you like it. We think it’s clever and congruent with our mission to promote XR, not just VR. - Bob
The LBE industry is kicking off 2026 with a massive push into global markets and refined operations. We’re seeing Sandbox VR make a €60 million bet on Italy, while HTC continues to solidify its role as the backbone of the sector by backing top-tier content creators like Atlas V. And in a sign of a maturing market, standards are developing, with the AAMA’s sanitation guidelines finally gaining official ASTM recognition.
And in One (Really) Big Thing, Google releases its Genie World Builder, pointing to the future of immersive entertainment. Whether you're building a world-class theme park or a local sensory hub, the market is moving fast. Are you in, or standing on the sidelines?
"This could be the Optimus Prime to Transform your LBE business."
New Developments
FECs and Arcades
After the Fall Free-Roam Lands on Standalone Headsets via Synthesis VR
Operators can now deploy Vertigo Games’ hit zombie shooter on standalone hardware like Quest and PICO 4, eliminating the need for PC backpacks in arena-scale setups. Read more
Transformers-Themed VR Parks Planned for Saudi Arabia
DMG Entertainment is bringing the multi-billion dollar Hasbro franchise to life with highly immersive indoor centers that blend VR, AR, and interactive dining for a next-gen family adventure. Read more
VRNexGEN Brings Immersive Gaming to Brentwood
Founded by local residents after an inspiring trip to IAAPA, this new center features wall-free VR arenas where guests as young as six can experience tetherless, physical gameplay. Read more
Sandbox VR Signs Franchise Deal for 40-Store Italy Expansion
Franchise partner Immexia Srl has opened the first Italian Sandbox VR in Treviso, with plans to invest €60 million to scale the brand across the country over the coming years. Read more
ASTM Formally Recognizes AAMA’s VR Sanitation Guide
In a major win for industry credibility, ASTM International has utilized the AAMA’s "VR Connect" sanitation guide to help establish new global hygiene standards for location-based VR equipment. Read more
The VReality Retro Arcade and VR Center Services Casper, Wyoming
A new mall-based entertainment hub combines classic arcade cabinets with modern VR escape rooms and free-roam arenas to offer a multi-generational social experience. Read more
Museums and Science Centers
Hainan Science and Technology Museum Begins Trial Operations
The massive 46,500-square-meter "auspicious cloud" landmark in China has officially opened its doors for testing, featuring immersive VR exhibits aimed at science popularization. Read more
Art, Music, and Culture
AI-Powered VR Swami Promises Nirvana in Hyderabad
A cutting-edge installation at the State Art Gallery uses virtual reality and artificial intelligence to offer visitors an immersive journey into inner peace, blending ancient mindfulness concepts with modern tech. Read more
Travel and Tourism
Elysium Bali Launches 8-Course VR Dining with Michelin-Starred Chef
Chef Kazushige Suzuki is leading a new experimental format at Luna Beach Club, where guests journey through eight virtual worlds that correlate with a fusion Japanese-Balinese tasting menu. Read more
The Super Reality Dome Redefines Collective Immersion Without Headsets
New projection technology offers a 360-degree "VR-like" experience for groups, removing the barrier of goggles for tourism, dining, and brand activations. Read more
Proposed "What The Sense" Hub Aims to Bring VR to Rural Scotland
A local mother in Crieff is seeking funding to build a sensory and illusion center that would include a dedicated VR and arcade room for neurodivergent visitors. Read more
Industry News
HTC Invests €5 Million in Atlas V Group to Bolster LBE Content
The hardware giant has joined a fundraising round for the European production house to accelerate the development of free-to-play gaming and high-end location-based immersive experiences. Read more
One Big Thing
The Genie is Out of the Bottle
Google DeepMind Just Released an Experimental AI That Builds Immersive Worlds - and it points to the future of Immersive LBE Experiences
Back in 2024, the geniuses at a16z (early investors in Sandbox VR) predicted the "Next Generation Pixar" wouldn't come from a film studio, but from interactive video—a medium that blurs the line between cinema and games. They argued that the biggest hurdle was that creating branching narratives is too expensive and slow for humans to do alone. Netflix’s Black Mirror: Bandersnatch is the prime example, proving immensely popular but ultimately never being duplicated.
Enter Project Genie
Project Genie isn't just another image generator like Dall-E or Midjourney. It’s a "foundation world model" that creates infinite, interactive environments in real-time. You don't build these worlds with polygons and code; you "sketch" them with text and images, and the AI simulates the physics and the path ahead as you move. In real time.
Why does this matter for Location-Based Entertainment?
For all of history, we’ve been limited by the "Golden Path"—the pre-rendered, linear experience where every guest sees the exact same thing. Environments were like houses, with pre-planned rooms, corridors, pathways, etc built in a game engine like Unity or Unreal. The idea of rendering custom 3D assets for every possible choice was financial insanity.
But Project Genie suggests a future where the "World Model" is the game engine. Imagine an LBE attraction where:
Agency is Affordable: Every guest's journey is unique because the environment is generated in real time based on their specific choices. The room you enter by opening a door is different for each guest, depending on what they did leading up to that moment.
The "Never-Ending" Attraction: You could refresh an attraction’s entire theme or "level" by simply updating a text prompt or a base image, ending the multi-million dollar "refresh" cycle of fixed attractions.
Infinite Replayability: The Holy Grail, experiences that are somewhere between slightly and entirely different each time you go through them. It’s even conceivable that guests could define the scaffolding of the experience they want before they start, or even change it up in the middle.
Reality Check: Google is labeling this an "experimental research prototype." It’s currently limited to 60-second generations, and the physics can still get a bit "hallucinatory." Characters aren't always easy to control, and latency is still a factor. We aren't replacing Unreal Engine tomorrow.
The primary use of this technology is to enable AI models to create artificial versions of the real world they can navigate, moving them closer to Artificial General Intelligence. But the technology will have far-reaching implications.
This IS the future. And it’s why getting in the LBEXR game now is critical for businesses focused on innovation. If you’re not OK with just copying/pasting the standard attraction mix, there are fantastic options for operating high-volume, profitable, and reliable VR attractions today.
The creator economy has taken over almost every aspect of entertainment, except LBE. This is why venues struggle in years two, three, and beyond. People want something new, and that multi-million-dollar investment in hard assets, or atoms, just isn’t going to age well in this world. New trends develop at the speed of TikTok, not calendar years, and your attraction strategy needs to be just as responsive.
The next "Pixar" won't just tell you a story in a headset; they’ll give you the keys to a world that builds itself while you’re standing in it. And that’s not going to happen on a movie screen either.
Read more on Google DeepMind. And share this with someone you care about.
The tech is finally catching up to the imagination. Now, who’s going to build the first venue around it? Want to be part of the future? Join LEXRA.
Stay immersed,
Bob
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