The Future Of VR Gaming: Out-of-Home XR Entertainment Continues To Evolve
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Out-of-home XR gaming is evolving rapidly, with new premium experiences, larger audiences, and increased investment. Key developments include IP-based attractions like ‘Jumanji: The Lost Levels’ and larger VR arena systems. The sector is expanding beyond traditional consumer VR into social, location-based entertainment.

Out-of-home XR entertainment continues to expand, driven by new investments, innovative attractions, and larger-scale VR arena systems. Major industry players are launching new IP-based experiences like ‘Jumanji: The Lost Levels,’ set to debut in over 170 venues in December, signaling a significant push into location-based immersive entertainment. This growth indicates a shift toward social, high-capacity VR experiences designed for broad audiences, moving beyond traditional consumer VR applications.

Recent developments in the out-of-home XR sector include the launch of high-profile IP-based VR attractions such as ‘Jumanji: The Lost Levels’, developed by Zero Latency in collaboration with Sony Pictures. The experience will be available across more than 170 venues starting in December, emphasizing social interaction over individual gameplay. Sandbox VR, another leading developer, has expanded to approximately 90 venues worldwide, offering experiences like Squid Game Virtual and Stranger Things: Catalyst. These experiences involve groups of six players using VR headsets and haptic vests within large arenas, often incorporating environmental effects for heightened immersion.

Additionally, the sector is moving toward larger audiences, with systems accommodating 20 to 40 players simultaneously. These ‘Virtual Adventure’ setups recreate environments such as ancient Rome, the Titanic, or pyramids, providing educational and entertainment value. An example is the Black Mirror Experience, a 50-minute hybrid adventure developed by Univrse in partnership with Banijay Live Studio, which transports players into a dystopian universe inspired by the television series.

Investment and interest in out-of-home XR are evident from recent industry events like the Augmented World Expo (AWE) in Long Beach, California. The event featured a dedicated LBE XR zone and seminars where developers showcased new projects, including multiplayer escape games like Cyberscape by The Rabbit Hole VR and vrCAVE, and standalone experiences such as Abyss Vault from Hololabs Studio, supported by Synthesis VR. These developments reflect a focus on social, multiplayer experiences that attract larger groups and generate revenue through IP licensing and attraction-based models.

At a glance
reportWhen: developing, with major announcements an…
The developmentRecent investments, new IP-based VR attractions, and larger-scale VR arena systems highlight the growth of out-of-home XR entertainment.
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Impact of LBE XR Growth on the Industry

The expansion of out-of-home XR entertainment signifies a major shift in the immersive tech industry, moving from individual consumer VR to large-scale, social, location-based experiences. This trend offers new revenue streams for developers and IP owners, leveraging popular properties to attract broad audiences. It also addresses challenges faced by consumer VR, such as hardware limitations and market saturation, by providing more accessible and social experiences in dedicated venues. As investments grow and technology advances, out-of-home XR could reshape the future landscape of immersive entertainment, making it more inclusive and commercially viable.

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Recent Trends and Industry Developments in Out-of-Home XR

The out-of-home XR sector has seen increased investment and innovation over the past year, fueled by industry events like AWE and the deployment of new hardware and content. Companies like Zero Latency and Sandbox VR have expanded their venue networks and introduced IP-based experiences that appeal to mainstream audiences. The sector is also adopting larger-scale systems that accommodate dozens of players simultaneously, emphasizing social interaction and immersive storytelling. Hardware providers such as PICO 4 and HTC VIVE are supporting these experiences with robust, high-capacity headsets tailored for high-usage environments, while hygienic solutions like Cleanbox Technologies address health concerns in shared settings.

Prior to these developments, the focus was primarily on individual or small-group VR experiences. The current trajectory points toward more social, large-group attractions that combine physical space with virtual environments, aligning with trends in theme parks and entertainment complexes. The sector’s growth was notably highlighted during industry events, where new projects and investment opportunities were showcased, indicating strong confidence in the future potential of out-of-home XR entertainment.

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Unresolved Questions About Sector Growth and Adoption

While the sector shows strong growth indicators, several uncertainties remain. It is not yet clear how widespread the adoption will be across different regions, especially outside North America and Europe. The long-term sustainability of high-capacity VR arenas, given the costs involved, also remains uncertain. Additionally, the impact of emerging hardware limitations, hygiene concerns, and content licensing on future expansion is still being evaluated. The scalability of these experiences and their ability to attract consistent foot traffic are ongoing questions for industry stakeholders.

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Upcoming Developments and Industry Milestones

The immediate next step involves the launch of ‘Jumanji: The Lost Levels’ in over 170 venues in December, which will serve as a key test case for IP-based out-of-home VR experiences. Industry events like AWE will continue to showcase new projects, with a focus on multiplayer, large-scale experiences. Investors and developers are expected to monitor the performance of these attractions closely, with some plans to expand existing venues or open new ones in 2024. Hardware manufacturers will also likely release updates or new models optimized for high-usage, hygienic, and social VR experiences, further supporting sector growth.

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Key Questions

What are the main benefits of out-of-home XR entertainment?

Out-of-home XR entertainment offers social interaction, larger audiences, and access to premium IP-based experiences that are often more immersive and physically engaging than typical consumer VR gaming.

How does hardware support large-scale VR arenas?

Hardware providers like HTC VIVE and PICO 4 offer robust headsets with features such as high capacity, swappable batteries, and support for PC VR rendering, which are essential for high-usage, hygienic, and social experiences in large venues.

What challenges does the sector face moving forward?

Challenges include high infrastructure costs, content licensing, hygiene concerns, hardware durability, and ensuring consistent foot traffic to sustain venue operations.

Will this sector replace traditional consumer VR gaming?

While out-of-home XR is growing rapidly, it is likely to complement rather than replace traditional consumer VR gaming, offering a different social and experiential dimension.

Source: Road to VR

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