Virtual Reality is supposed to be the next computing revolution. But as companies race to define the future of immersive technology, they are making the same mistake over and over again: following the iPhone paradigm.

Apple’s iPhone changed the mobile industry forever. It proved that a tightly controlled ecosystem, proprietary hardware, and an app store model could be incredibly lucrative. Every major VR company, Meta, Apple, Sony, and even some smaller players, are chasing this same model, trying to lock users into their walled gardens. But VR isn’t a smartphone. If it is to succeed as a true computing platform, it must follow a different path, one more like the Apple II or the PC revolution, where open standards, interoperability, and affordability drive adoption.

The Closed VR Problem

Look at the major VR players today. Meta’s Quest headsets run on a proprietary OS, with an app store that heavily regulates what software can be sold. Apple’s Vision Pro is even more restrictive, designed to function only within Apple’s ecosystem. Sony’s PlayStation VR2 only works with PlayStation hardware. Even smaller players, like Pico (owned by ByteDance), run closed ecosystems.

This approach is great for short-term profits but terrible for long-term growth. We’ve seen this play out before. The Macintosh in the 1980s was revolutionary but ultimately lost the market to IBM-compatible PCs. Why? Because Macs were closed systems, while the PC was an open standard that any manufacturer could build upon. The same mistake is happening with VR today.

Why Open VR Matters

If VR is to succeed as a mainstream computing platform, it needs:

1. Interoperability: Headsets should work with any system, not just one ecosystem. A user should be able to buy a VR headset and connect it to any PC, console, or cloud system they prefer.
2. Open Software Standards: Just like the web, VR applications should work across different platforms. We need a true “VR browser” standard that ensures apps run everywhere, rather than being locked into individual app stores.
3. Affordable Hardware: Closed ecosystems drive up prices. The Apple Vision Pro is an extreme example, costing thousands of dollars. Open standards would allow multiple manufacturers to compete on price and features, making VR more accessible.
4. Developer Freedom: The current VR market is dominated by companies that take massive cuts from developers (30% or more). An open VR ecosystem would allow developers to create and distribute software freely, spurring innovation.

Learning from the Past

When personal computers took off in the 1980s, it wasn’t because of a single dominant company controlling everything. It was because open standards, like IBM’s PC architecture and Microsoft’s operating system licensing, allowed multiple companies to build and expand the market.

The internet succeeded for the same reason. If web browsers had been locked to specific operating systems, the web wouldn’t be what it is today. Imagine if Chrome only worked on Google computers, or if Safari was the only browser for Apple’s network. That’s the direction VR is heading in right now, and it’s a disaster waiting to happen.

What Needs to Change

To prevent VR from becoming a fragmented, niche product, companies must shift their approach. We need:

• A universal VR standard like OpenXR to be fully adopted and enforced across all headsets and platforms.
• Headsets that work with any operating system, not just one ecosystem.
• A decentralized app store model, similar to how PC gaming operates with Steam, Epic Games Store, and independent downloads.
• An industry push for affordability rather than premium, locked-down devices.

The arcade entertainment industry continues to evolve in 2025, adapting to new technologies, consumer preferences, and economic factors. With advancements in virtual reality, social gaming, and experiential entertainment, arcades are reinventing themselves to attract modern audiences. Here are the key trends shaping the arcade entertainment industry this year.

1. Virtual Reality (VR) and Augmented Reality (AR) Integration

VR and AR are revolutionizing the arcade experience, offering fully immersive gameplay that traditional machines cannot match. Arcades are increasingly investing in VR attractions, such as multiplayer VR arenas, motion-based VR rides, and AR-enhanced gaming booths. Games that merge physical movement with digital environments create highly engaging experiences that keep players coming back.

2. Competitive Social Gaming and eSports Integration

The rise of eSports has led to arcades incorporating competitive gaming zones, where players can participate in tournaments or challenge each other in real-time battles. These spaces often feature high-end gaming PCs, console setups, and even spectator areas. Competitive gaming within arcades fosters a strong community aspect, drawing in both casual and hardcore gamers.

3. Redemption and Prize-Based Gaming Evolution

Traditional redemption games remain popular, but arcades are modernizing the experience by incorporating digital tracking and mobile app integration. Players can now collect virtual tickets and redeem prizes through online catalogs, reducing waste and improving convenience. Additionally, skill-based prize games are on the rise, offering players more agency in winning high-value rewards.

4. Experiential and Themed Arcades

In 2025, arcades are becoming more than just a place to play games—they are transforming into full-fledged entertainment destinations. Themed arcades based on popular franchises, interactive escape room experiences, and hybrid concepts that combine gaming with dining or live performances are gaining traction. These unique experiences encourage longer visits and repeat customers.

5. AI-Powered Personalization

Artificial intelligence is playing a crucial role in tailoring arcade experiences to individual players. AI-driven arcade machines can adjust difficulty levels based on a player’s skill, recommend games based on past preferences, and even provide real-time coaching. Additionally, AI is being used to analyze foot traffic and optimize arcade layouts for maximum engagement.

6. Sustainable and Contactless Solutions

Sustainability is becoming a priority for arcade operators, with many adopting energy-efficient machines, digital payment systems, and eco-friendly redemption options. Contactless payments, mobile game credits, and automated check-ins are now common, enhancing convenience while reducing the need for physical touchpoints.

7. Revival of Classic and Retro Games with a Modern Twist

Nostalgia remains a powerful draw, leading to the continued popularity of retro arcade games. However, arcades are giving these classics a modern refresh with updated graphics, online leaderboards, and multiplayer connectivity. Hybrid machines that blend old-school aesthetics with new technology provide the best of both worlds.

8. Location-Based Entertainment and Immersive Attractions

Many arcades are expanding beyond traditional gaming to offer full-scale, location-based entertainment (LBE). Interactive theme park-style attractions, escape rooms, and mixed-reality experiences are increasingly found in modern arcades. These large-scale attractions create a compelling reason for visitors to choose arcade entertainment over home gaming setups.

Google’s recent unveiling of Android XR marks a significant advancement in the realm of extended reality (XR), blending artificial intelligence (AI) with immersive technologies to redefine user experiences. Developed in collaboration with Samsung and Qualcomm, Android XR is poised to power a new generation of headsets and smart glasses, with Samsung’s Project Moohan leading the charge.

Android XR is Google’s dedicated operating system for XR devices, encompassing virtual reality (VR), augmented reality (AR), and mixed reality (MR) applications. This platform builds upon the robust foundation of Android, ensuring compatibility with a vast ecosystem of apps and services. By supporting tools like ARCore, Android Studio, Jetpack Compose, Unity, and OpenXR, Android XR enables developers to create immersive experiences with relative ease.

A standout feature of Android XR is its seamless integration with existing Android applications. Users can access a wide array of apps through the Google Play Store, offering a ready-made ecosystem for early adopters. This approach addresses a common challenge in XR adoption by providing immediate value and familiarity to users.

In partnership with Google, Samsung is set to launch Project Moohan, a mixed-reality headset that showcases the capabilities of Android XR. Scheduled for release in 2025, Project Moohan aims to offer immersive experiences that cater to both VR and AR applications. The headset is designed to be lightweight and comfortable, featuring an optional light seal to allow users to control the extent of immersion.

Project Moohan exemplifies the collaborative efforts between Google and Samsung to deliver a versatile and user-friendly XR device. By leveraging Android XR, the headset promises compatibility with a broad range of applications, from immersive gaming to productivity tools, thereby catering to diverse user needs.

At the heart of Android XR lies Gemini, Google’s advanced AI assistant designed to enrich user interactions within XR environments. Gemini offers contextual assistance, enabling natural and conversational interactions between users and their devices. For instance, users can control their XR devices through voice commands, access real-time information, and receive guidance on tasks—all within an immersive setting.

Gemini’s integration into Android XR devices like Project Moohan enhances the overall user experience by providing intuitive control and personalized assistance. This fusion of AI and XR opens up new possibilities for applications across various sectors, including education, healthcare, and entertainment.

The convergence of Android XR and Gemini AI paves the way for a multitude of applications:

• Immersive Education: Students can engage with interactive 3D models and virtual classrooms, facilitated by AI-driven tutoring systems.
• Remote Collaboration: Professionals can collaborate in virtual workspaces, with AI assisting in data analysis and task management.
• Healthcare Training: Medical practitioners can simulate surgeries and diagnostic procedures in a risk-free virtual environment, guided by AI insights.

As Android XR continues to evolve, the integration of AI through Gemini is expected to drive innovation, making XR technologies more accessible and functional for a broader audience. This synergy between AI and XR signifies a transformative step toward more immersive and intelligent digital experiences.