Another credible research report showcases the opportunity for the location-based entertainment industry’s adoption of XR technology. It’s happening all around you but it’s escaping mainstream media attention, who seem overly focused on Apple Vision Pro’s lack of sales and Mark Zuckerberg’s lack of legs. The One Big Thing is right below the latest news.

Are you coming to the VR Arcade and Attraction Summit in las Vegas? Get your tickets to

Pints & Probes: Close Encounters of the Irish Kind, where you’ll enjoy:
🍀 A classic Irish buffet & drinks
👽 A world-premiere VR escape room demo: Alien Infection by vrCAVE
🤝 Great networking with industry pros

LBEVR becomes an awkward teenager, without the zits and unusually long showers.

New Developments

Theme Parks

Mario Kart: Bowser’s Challenge—The Ultimate VR Racing Experience
Experience the thrill of Mario Kart in VR with Bowser’s Challenge, an immersive racing adventure that brings the Mushroom Kingdom to life. Read more

Two Bit Circus Launches Dream Park: The Mixed-Reality Theme Park Revolution
Two Bit Circus is redefining theme parks with Dream Park, a next-gen mixed-reality destination that blends physical and digital play. Read more

FECs and Arcades

New VR Bar Offers Unique Clay Pigeon Shooting Experience
This new VR bar is bringing a fresh spin to social gaming with a virtual clay pigeon shooting experience that combines realism with fun. Read more

Capcom’s Onimusha VR: Shadow Team Launches in Japanese Arcades March 2025
Fans of Capcom’s Onimusha series can now step into a samurai warrior’s shoes with the launch of Shadow Team in VR arcades across Japan. Read more

Coast-to-Coast Expansion: How Sandbox VR Is Dominating the VR Arcade Market in North America
With rapid expansion across North America, Sandbox VR is solidifying its place as a leader in premium free-roam VR entertainment. Read more

Level Up Your Gaming: Zero Latency Adds New Warhammer Version
Zero Latency continues to innovate with a new Warhammer VR experience, expanding its lineup of immersive multiplayer adventures. Read more

Museums and Science Centers

A Journey Through Time: Sino-French War in Virtual Reality
Step onto the battlefields of the Sino-French War with a VR experience that brings historical conflicts to life through immersive storytelling. Read more

Dinosaur Lovers Rejoice: Experience Life-Like VR Expeditions at New Museum
A new museum exhibit is giving visitors the chance to walk among dinosaurs in breathtaking VR, offering a paleontology adventure like never before. Read more

Art, Music, and Culture

In Pursuit of Repetitive Beats: Make Waves in Ireland
A new immersive experience in Ireland explores the underground rave scene, fusing music history with cutting-edge VR storytelling. Read more

Check out this year’s speaker lineup for the VR Arcade and Attraction Summit. You can still get to Vegas if you book a flight today!

VR and AR Tech News

Brendan Iribe’s Next Act: AI Glasses That Will Transform How We Communicate in VR
The co-founder of Oculus is back with a bold vision—AI-powered glasses designed to revolutionize VR communication. Read more

Vicon Takes a Massive Step Forward with Markerless Motion Capture at GDC
Vicon is leading the charge in next-gen motion capture with a new markerless system that could redefine animation and VR tracking. Read more

Valve’s New Rumored Headset: Everything We Know So Far
Valve is reportedly working on a new VR headset—here’s what the latest leaks and rumors reveal about its potential features. Read more

One Big Thing

Location-based XR’s Next Phase: From Creativity to Profitability

This article pulls from highlights in Evolving Immersive: The 2025 Immersive Industry Report, edited by Noah Nelson, Immersive Experience Institute, and published by Gensler Research Institute. It's packed with insights, despite a smattering of research referencing data from the pandemic, which is now irrelevant. 

1. XR’s Awkward Teenage Years 

We've left the 'wild west' days behind, and the immersive industry is finally hitting adolescence—though maturity might still be a stretch. The industry is finding its footing, becoming more sophisticated, but there's still plenty of room to grow, particularly in turning creativity into scalable, profitable businesses.

2. XR is Winning—Traditional Entertainment, Not So Much 

While traditional entertainment scrambles to keep audiences, XR is exploding. Immersive gaming, virtual concerts, and theater productions that blend physical and digital worlds are clearly the way forward. The market is speaking, loudly.

3. Growing Pains Are Real 

Excitement aside, XR has real challenges:

• Artistic dreams often outpace solid business strategies. We still struggle to align creative ambition with scalable business models.

• The gap between vision and viability remains huge.

• XR creators and operators must bridge ambition with execution to build profitable, sustainable businesses.

4. Audiences Demand Quality and Will Travel for It

Immersive fans are sophisticated and selective. Experiences like Star Wars: Galactic Starcruiser (despite it’s closure - see #8 below), ambitious immersive theater such as Sleep No More, and immersive art projects like Meow Wolf have raised expectations. But here's the good news: about three-quarters of immersive fans will gladly travel for something remarkable. Quality isn't optional—it's mandatory.

5. Real Estate and XR Are Still at Odds 

The relationship between real estate developers and immersive operators continues to be rocky. Developers often don’t get XR business models, and this mismatch can sink otherwise promising ventures. Finding alignment here is crucial for long-term growth.

6. XR Moves Beyond Entertainment into Real Estate and Culture 

Despite friction, XR is proving itself indispensable, both commercially and culturally. Real estate developers are cautiously eyeing XR, seeing opportunities to breathe new life into underutilized spaces. Places like AREA15 in Las Vegas illustrate the immense potential when the collaboration clicks.

7. Funding: A Creative Puzzle 

Traditional funding doesn’t neatly fit XR, but creative financing is stepping in to fill the gap. A cocktail of crowdfunding, strategic partnerships, grants, and savvy investors is emerging as the most viable pathway forward. It's messy, but it works.

8. Charting the Path to Sustainability 

XR’s future lies in balancing creativity with operational discipline. If we can clearly align artistic vision with viable business models, secure diverse funding streams, and navigate real estate challenges thoughtfully, XR will become more than just entertainment—it'll reshape how we connect, interact, and experience the world around us.

Download and read the report for yourself, and let me know what you think the biggest highlights or surprises are. 

I want to thank all the sponsors for this years VR Arcade and Attraction Summit. HTC VIVE,