The State of XR and VR Gaming: Innovations, Challenges, and the Future
- Ramzies aka Robert Troumbley
- Mar 23, 2023
- 2 min read
In this article, we discuss the current state and future of XR gaming, focusing on its most popular form, VR gaming. We will touch on recent advancements, challenges, and the potential future of the industry, as well as acknowledging the artists and developers who make it possible.

Current state of XR gaming
The XR gaming industry has recently seen significant advancements, with cutting-edge headsets like Quest Pro, HTC's Vive XR Elite, Pico Nico 3, and Sony's PlayStation VR2 being released[1]. While AR technology exists, most of the latest XR products are VR-based passthrough, thanks to improved resolution, clarity, and longer-lasting batteries for the devices[1]. Platforms like Unity and Unreal Engine are currently leading the way in XR software development[3].

Challenges
Despite technological advancements, the XR gaming industry struggles to attract a large following. Many potential customers are unsure if the immersive experience of XR gaming is worth the investment in hardware and games[2]. Additionally, the economic challenges faced by companies like Pico and Tencent have resulted in employee layoffs in their XR departments[4]. XR gaming is still considered a niche market with limited availability of games and a relatively small player base[2].

Future of XR gaming
There is optimism and excitement about the future of XR gaming, as technology advances and becomes more mainstream. We expect more large game developers to enter the market, creating exciting and innovative games that will attract a broader audience[6]. The extended reality market is predicted to reach $446.6 billion by 2031, indicating enormous growth potential[10]. As XR technology becomes more accessible and affordable, with the possible release of subscription services[7] and new game launches[6], players will have more options than ever.
Why it matters

XR gaming is about pushing the boundaries of technology and human creativity to create worlds and characters that were once only possible in our imaginations[8]. It has the potential to improve mental health, enhance education, and aid in physical therapy[9]. As the industry evolves, we can expect even more mind-blowing experiences with top-notch graphics and next-level hardware, making the future of XR gaming incredibly bright.
Credits:
[1]: "Neuralpassthrough: Meta Shows AI-Based AR for VR Headsets" from Mixed News (https://mixed-news.com/en/neuralpassthrough-meta-shows-ai-based-ar-for-vr-headsets/)
[2]: "Quest Sales Reach 20 Million, But Retention Struggles" from Road to VR (https://www.roadtovr.com/quest-sales-20-million-retention-struggles/)
[3]: "VR Development with Unreal Engine" from Unreal Engine documentation (https://docs.unrealengine.com/4.27/en-US/SharingAndReleasing/XRDevelopment/VR/)
[4]: "PlayStation VR2 Sales Are Low Despite Low Preorders and Reasonable Price" from The Verge (https://www.theverge.com/2023/1/31/23579292/sony-playstation-vr2-psvr2-sales-low-preorders-price) and "Pico and Tencent Lay Off Employees in XR Departments: Reports" from Mixed News (https://mixed-news.com/en/pico-and-tencent-lay-off-employees-in-xr-departments-reports/)
[5]: "Global Extended Reality Market Report" from Yahoo Finance (https://www.yahoo.com/now/global-extended-reality-market-report-025000505.html)
[6]: "Meta Quest Pass, a Rumored Subscription Service, Could Come to Quest 2" from Tom's Guide (https://www.tomsguide.com/news/meta-quest-pass-a-rum
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