mixed reality
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Facebook buys game studio BigBox VR
Facebook has bought several virtual reality game studios over the past couple of years, and they added one more to their portfolio Friday with the acquisition of Seattle-based BigBox VR.
The studio’s major title, “Population: One,” was one of the big post-launch releases for Facebook’s Oculus Quest 2 headset and is a pretty direct Fortnite clone, copying a number of key gameplay techniques while adapting them for the movements unique to virtual reality and bringing in their own lore and art style.
As has been the case for most of these studio acquisitions, terms weren’t disclosed. BigBox raised $6.5 million according to Crunchbase, with funding from Shasta Ventures, Outpost Capital, Pioneer Square Labs and GSR Ventures.
“POP: ONE stormed onto the VR scene just nine months ago and has consistently ranked as one the top-performing titles on the Oculus platform, bringing together up to 24 people at a time to connect, play, and compete in a virtual world,” Facebook’s Mike Verdu wrote in a blog post.
It’s not unusual for a gaming hardware platform owner to build up their own web of studios building platform exclusives, but in the VR world things are a little different, given that Facebook has few real competitors.
While many of the developers inside Oculus Studios continue to build titles for Valve’s Steam store, which are accessible with third-party headsets, most non-Facebook VR platforms seem to be a shrinking piece of the overall VR pie, having been priced out of the market by Facebook’s aggressive pursuit of a mass market audience. Facebook’s Oculus Quest 2 retails for $299 and the company has said that it outsold all of its previous devices combined in its first few months.
In April, Facebook acquired Downpour Interactive, maker of the VR shooter “Onward.”
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Qualcomm-powered Chinese XR startup Nreal raises $40 million
Nreal, one of the most-watched mixed reality startups in China, just secured $40 million from a group of high-profile investors in a Series B round that could potentially bring more adoption to its portable augmented headsets.
Kuaishou, the archrival to TikTok’s Chinese version Douyin, led the round, marking yet another video platform to establish links with Nreal, following existing investor iQiyi, China’s own Netflix. Like other major video streaming sites around the world, Kuaishou and iQiyi have dabbled in making augmented reality content, and securing a hardware partner will no doubt be instrumental to their early experiments.
Other backers in the round with plentiful industry resources include GP Capital, which counts state-owned financial holding group Shanghai International Group and major Chinese movie studio Hengdian Group as investors; CCEIF Fund, set up by state-owned telecom equipment maker China Electronics Corporation and state-backed investment bank China International Capital Corporation; GL Ventures, the early-stage fund set up by prominent private equity firm Hillhouse Capital; and Sequoia Capital China.
In early 2019, Nreal brought onboard Xiaomi founder’s venture fund Shunwei Capital for its $15 million Series A funding. As I wrote at the time, AR, VR, MR, XR — whichever marketing coinage you prefer — will certainly be a key piece in Xiaomi’s Internet of Things empire. It’s not hard to see the phone titan sourcing smart glasses from Nreal down the road.
The other key partner of Nreal, a three-year-old company, is Qualcomm . The chipmaker has played an active part in China’s 5G rollout, powering major Chinese phone makers’ next-gen handsets. It supplies Nreal with its Snapdragon processors, allowing the startup’s lightweight mixed reality glasses to easily plug into an Android phone.
“Its closer partnership with Qualcomm will allow it to access Qualcomm’s network of customers, including telecoms companies,” Seewan Toong, an industry consultant on AR and VR, told TechCrunch.
Indeed, the mixed reality developer has already signed a deal with Japanese telco KDDI and in Korea, it’s working with LG’s cellular carrier LG Uplus Corp.
The latest round brings Nreal’s total raise to more than $70 million and will accelerate mass adoption of its mixed reality technology in the 5G era, the company said.
It remains to be seen how Nreal will live up to its promise, secure users at scale and move beyond being a mere poster child for tech giants’ mixed reality ambitions. So far its deals with big telcos are in a way reminiscent of that of Magic Leap, which has been in a legal spat with Nreal, though the Chinese company appears to burn through less cash so far. The troubled American company is currently pivoting to relying on enterprise customers after failing to crack the consumer market.
“Nreal is patient and not in a rush to show they can start selling high volume. It’s trying to prove that there’s a user scenario for its technology,” said Toong.
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AR 1.0 is dead: Here’s what it got wrong
The first wave of AR startups offering smart glasses is now over, with a few exceptions.
Google acquired North this week for an undisclosed sum. The Canadian company had raised nearly $200 million, but the release of its Focals 2.0 smart glasses has been cancelled, a bittersweet end for its soft landing.
Many AR startups before North made huge promises and raised huge amounts of capital before flaring out in a similarly dramatic fashion.
The technology was almost there in a lot of cases, but the real issue was that the stakes to beat the major players to market were so high that many entrants pushed out boring, general consumer products. In a race to be everything for everybody, the industry relied on nascent developer platforms to do the dirty work of building their early use cases, which contributed heavily to nonexistent user adoption.
A key error of this batch was thinking that an AR glasses company was hardware-first, when the reality is that the missing value is almost entirely centered on missing first-party software experiences. To succeed, the next generation of consumer AR glasses will have to nail this.
Image Credits: ODG
App ecosystems alone don’t create product-market fit
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What happens if Magic Leap shuts down?
Since first uploading a YouTube teaser video of its tech five years ago, Magic Leap’s presence in the augmented reality industry has been controversial.
Some have lauded the team’s ambitions, while others I’ve talked to say the company’s posturing has dissuaded investors from taking chances on other AR hardware startups, which has hampered the industry’s advance.
Regardless of its impact, Magic Leap carries outsized weight, leading one to question what would happen to other AR companies if the company’s situation worsened.
The company announced layoffs today, with reports indicating that it is dismissing around 1,000 employees — about half of the company. Magic Leap’s added news of a major pivot to enterprise makes it seem like that wasn’t its primary strategy over the past year. From my perspective, the company looks like it is on a path to a fire sale and will be dependent on executing a dramatic turnaround, which grows tougher under current economic conditions.
Magic Leap has few users, so a theoretical shutdown would likely have a lesser impact than other unicorn flare-outs; still, losing a company on the forefront of a technology lauded by many as the next ubiquitous platform will certainly impact others that are striving to bring this tech to market.
The impact for startups moving forward would be nuanced. Without a substantial software suite of its own, Magic Leap relied heavily on developer partnerships, though in recent months many of those seemed to promote enterprise use cases. AR/VR startups are already in a rough position, and one less developer platform could force more companies to de-prioritize headset-based platforms and shift their focus to mobile.
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Microsoft announces the $3,500 HoloLens 2 Development Edition
As part of its rather odd Thursday afternoon pre-Build news dump, Microsoft today announced the HoloLens 2 Development Edition. The company announced the much-improved HoloLens 2 at MWC Barcelona earlier this year, but it’s not shipping to developers yet. Currently, the best release date we have is “later this year.” The Development Edition will launch alongside the regular HoloLens 2.
The Development Edition, which will retail for $3,500 to own outright or on a $99 per month installment plan, doesn’t feature any special hardware. Instead, it comes with $500 in Azure credits and three-month trials of Unity Pro and the Unity PiXYZ plugin for bringing engineering renderings into Unity.
To get the Development Edition, potential buyers have to join the Microsoft Mixed Reality Developer Program and those who already pre-ordered the standard edition will be able to change their order later this year.
As far as HoloLens news goes, that’s all a bit underwhelming. Anybody can get free Azure credits, after all (though usually only $200) and free trials of Unity Pro are also readily available (though typically limited to 30 days).
Oddly, the regular HoloLens 2 was also supposed to cost $3,500. It’s unclear if the regular edition will now be somewhat cheaper, cost the same but come without the credits or really why Microsoft is doing this at all. Turning this into a special “Development Edition” feels more like a marketing gimmick than anything else, as well as an attempt to bring some of the futuristic glamour of the HoloLens visor to today’s announcements.
The folks at Unity are clearly excited, though. “Pairing HoloLens 2 with Unity’s real-time 3D development platform enables businesses to accelerate innovation, create immersive experiences, and engage with industrial customers in more interactive ways,” says Tim McDonough, GM of Industrial at Unity, in today’s announcement. “The addition of Unity Pro and PiXYZ Plugin to HoloLens 2 Development Edition gives businesses the immediate ability to create real-time 2D, 3D, VR, and AR interactive experiences while allowing for the importing and preparation of design data to create real-time experiences.”
Microsoft also today noted that Unreal Engine 4 support for HoloLens 2 will become available by the end of May. 
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Say hello to Microsoft’s new $3,500 HoloLens with twice the field of view
Microsoft unveiled the latest version of its HoloLens ‘mixed reality’ headset at MWC Barcelona today. The new HoloLens 2 features a significantly larger field of view, higher resolution and a device that’s more comfortable to wear. Indeed, Microsoft says the device is three times as comfortable to wear (though it’s unclear how Microsoft measured this).
Later this year, HoloLens 2 will be available in the United States, Japan, China, Germany, Canada, United Kingdom, Ireland, France, Australia and New Zealand for $3,500.
One of the knocks against the original HoloLens was its limited field of view. When whatever you wanted to look at was small and straight ahead of you, the effect was striking. But when you moved your head a little bit or looked at a larger object, it suddenly felt like you were looking through a stamp-sized screen. HoloLens 2 features a field of view that’s twice as large as the original.
“Kinect was the first intelligent device to enter our homes,” HoloLens chief Alex Kipman said in today’s keynote, looking back the the device’s history. “It drove us to create Microsoft HoloLens. […] Over the last few years, individual developers, large enterprises, brand new startup have been dreaming up beautiful things, helpful things.”
The HoloLens was always just as much about the software as the hardware, though. For HoloLens, Microsoft developed a special version of Windows, together with a new way of interacting with the AR objects through gestures like air tap and bloom. In this new version, the interaction is far more natural and lets you tap objects. The device also tracks your gaze more accurately to allow the software to adjust to where you are looking.
“HoloLens 2 adapts to you,” Kipman stressed. “HoloLens 2 evolves the interaction model by significantly advancing how people engage with holograms.”
In its demos, the company clearly emphasized how much faster and fluid the interaction with HoloLens applications becomes when you can use slides, for example, by simply grabbing the slider and moving it, or by tapping on a button with either a finger or two or with your full hand. Microsoft event built a virtual piano that you can play with ten fingers to show off how well the HoloLens can track movement. The company calls this ‘instinctual interaction.’
Microsoft first unveiled the HoloLens concept at a surprise event on its Redmond campus back in 2015. After a limited, invite-only release that started days after the end of MWC 2016, the device went on sale to everybody in August 2016. Four years is a long time between hardware releases, but the company clearly wanted to seed the market and give developer a chance to build the first set of HoloLens applications on a stable platform.
To support developers, Microsoft is also launching a number of Azure services for HoloLens today. These include spatial anchors and remote rendering to help developers stream high-polygon content to HoloLens.
It’s worth noting that Microsoft never positioned the device as consumer hardware. I may have shown off the occasional game, but its focus was always on business applications, with a bit of educational applications thrown in, too. That trend continued today. Microsoft showed off the ability to have multiple people collaborate around a single hologram, for example. That’s not new, of course, but goes to show how Microsoft is positioning this technology.
For these enterprises, Microsoft will also offer the ability to customize the device.
“When you change the way you see the world, you change the world you see,” Microsoft CEO Satya Nadella said, repeating a line from the company’s first HoloLens announcement four years ago. He noted that he believes that connecting the physical world with the virtual world will transform the way we will work.
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Microsoft bringing Dynamics 365 mixed reality solutions to smartphones
Last year Microsoft introduced several mixed reality business solutions under the Dynamics 365 enterprise product umbrella. Today, the company announced it would be moving these to smartphones in the spring, starting with previews.
The company announced Remote Assist on HoloLens last year. This tool allows a technician working onsite to show a remote expert what they are seeing. The expert can then walk the less-experienced employee through the repair. This is great for those companies that have equipped their workforce with HoloLens for hands-free instruction, but not every company can afford the new equipment.
Starting in the spring, Microsoft is going to help with that by introducing Remote Assist for Android phones. Just about everyone has a phone with them, and those with Android devices will be able to take advantage of Remote Assist capabilities without investing in HoloLens. The company is also updating Remote Assist to include mobile annotations, group calling and deeper integration with Dynamics 365 for Field Service, along with improved accessibility features on the HoloLens app.
IPhone users shouldn’t feel left out though because the company announced a preview of Dynamics 365 Product Visualize for iPhone. This tool enables users to work with a customer to visualize what a customized product will look like as they work with them. Think about a furniture seller working with a customer in their homes to customize the color, fabrics and design in place in the room where they will place the furniture, or a car dealer offering different options such as color and wheel styles. Once a customer agrees to a configuration, the data gets saved to Dynamics 365 and shared in Microsoft Teams for greater collaboration across a group of employees working with a customer on a project.
Both of these features are part of the Dynamics 365 spring release and are going to be available in preview starting in April. They are part of a broader release that includes a variety of new artificial intelligence features such as customer service bots and a unified view of customer data across the Dynamics 365 family of products.
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Medivis has launched its augmented reality platform for surgical planning
After two years of development, Medivis, a New York-based company developing augmented reality data integration and visualization tools for surgeons, is bringing its first product to market.
The company was founded by Osamah Choudhry and Christopher Morley who met as senior residents at NYU Medical Center.
Initially a side-project, the two residents roped in some engineers to help develop their first prototypes and after a stint in NYU’s Summer Launchpad program the two decided to launch the company.
Now, with $2.3 million in financing led by Initialized Capital and partnerships with Dell and Microsoft to supply hardware, the company is launching its first product, called SurgicalAR.
In fact, it was the launch of the HoloLens that really gave Medivis its boost, according to Morley. That technology pointed a way toward what Morley said was one of the dreams for technology in the medical industry.
“The Holy Grail is to be able to holographically render a patient,” he said.
For now, Medivis is able to access patient data and represent it visually in a three-dimensional model for doctors to refer to as they plan surgeries. That model is mapped back to the patient to give surgeons a plan for how best to approach an operation.
“The interface between medical imaging and surgical utility from it is really where we see a lot of innovation being possible,” says Morley.
So far, Medivis has worked with the University of Pennsylvania and New York University to bring their prototypes into a surgical setting.
The company is integrating some machine learning capabilities to be able to identify the most relevant information from patients’ medical records and diagnostics as they begin to plan the surgical process.
“What we’ve been working on over this time is developing this really disruptive 3D pipeline,” says Morley. “What we have seen is that there is a distinct lack of 3D pipelines to allow people to directly interface… very quickly try to automate the entire rendering process.”
For now, Medivis is selling a touchscreen monitor, display and a headset. The device plugs into a hospital network and extracts medical imaging to display from their servers in about 30 seconds, according to Choudhry.
“That’s where we see this immediately being useful in that pre-surgical planning stage,” Choudhry says. “The use in surgical planning and being able to extend this through surgical navigation… Streamline the process that requires a large amount of pieces and components and setups so you only need an AR headset to localize pathology and make decisions off of that.”
Already the company has performed 15 surgeries in consultation with the company’s technology.
“When we first met Osamah and Chris, we immediately understood the magnitude of the problem they were out to solve. Medical imaging as it relates to surgical procedures has largely been neglected, leaving patients open to all sorts of complications and general safety issues,” said Eric Woersching, general partner, Initialized Capital, in a statement. “We took one look at the Medivis platform and knew they were poised to transform the operating room. Not only was their hands-free approach to visualization meeting a real need for greater surgical accuracy, but the team has the passion and expertise in the medical field to bring it all to fruition. We couldn’t be more thrilled to welcome Medivis to the Initialized family.”
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Upskill launches support for Microsoft HoloLens
Upskill has been working on a platform to support augmented and mixed reality for almost as long as most people have been aware of the concept. It began developing an agnostic AR/MR platform way back in 2010. Google Glass didn’t even appear until two years later. Today, the company announced the early release of Skylight for Microsoft HoloLens.
Upskill has been developing Skylight as an operating platform to work across all devices, regardless of the manufacturer, but company co-founder and CEO Brian Ballard sees something special with HoloLens. “What HoloLens does for certain types of experiences, is it actually opens up a lot more real estate to display information in a way that users can take advantage of,” Ballard explained.
He believes the Microsoft device fits well within the broader approach his company has been taking over the last several years to support the range of hardware on the market while developing solutions for hands-free and connected workforce concepts.
“This is about extending Skylight into the spatial computing environment making sure that the workflows, the collaboration, the connectivity is seamless across all of these different devices,” he told TechCrunch.
Microsoft itself just announced some new HoloLens use cases for its Dynamics 365 platform around remote assistance and 3D layout, use cases which play to the HoloLens strengths, but Ballard says his company is a partner with Microsoft, offering an enhanced, full-stack solution on top of what Microsoft is giving customers out of the box.
That is certainly something Microsoft’s Terry Farrell, director of product marketing for mixed reality at Microsoft recognizes and acknowledges. “As adoption of Microsoft HoloLens continues to rapidly increase in industrial settings, Skylight offers a software platform that is flexible and can scale to meet any number of applications well suited for mixed reality experiences,” he said in a statement.
That involves features like spatial content placement, which allows employees to work with digital content in HoloLens, while keeping their hands free to work in the real world. They enhance this with the ability to see multiple reference materials across multiple windows at the same time, something we are used to doing with a desktop computer, but not with a device on our faces like HoloLens. Finally, workers can use hand gestures and simple gazes to navigate in virtual space, directing applications or moving windows, as we are used to doing with keyboard or mouse.
Upskill also builds on the Windows 10 capabilities in HoloLens with its broad experience securely connecting to back-end systems to pull the information into the mixed reality setting wherever it lives in the enterprise.
The company is based outside of Washington, D.C. in Vienna, Virginia. It has raised over $45 million, according to Crunchbase. Ballard says the company currently has 70 employees. Customers using Skylight include Boeing, GE, Coca-Cola, Telstra and Accenture.
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Microsoft is putting HoloLens to work with new Dynamics 365 applications
Microsoft HoloLens mixed reality glasses have always been interesting technology, but it’s never been clear how the company would move from novelty device to actual viable business use cases. Today, it made a move toward the latter, announcing a couple of applications designed to put the HoloLens to work in Dynamics 365, giving it a real business purpose.
Dynamics 365 is Microsoft’s one-stop shop for CRM and ERP, where a company can work on some of its key business software functions including field service in an integrated fashion. The company has been looking at for HoloLens to bring computing power to a group of field workers like repair technicians for whom even a tablet would be awkward because they have to work with both hands free.
For these people, having a fully functioning Windows 10 computer you can wear on your face could be a big advantage and that’s what Microsoft is hoping to provide with HoloLens. The problem was finding use cases where this would make sense. One idea is providing remote assistance for people out in the field to get help from subject experts back at the office, and today the company announced Dynamics 365 Remote Assist.
In this scenario, the worker is wearing a HoloLens either to understand the repair scenario before they go to the site or to get remote help from a subject expert while they are at the site. The expert can virtually see what the technician is seeing through the HoloLens, and walk them through the repair without leaving the office, even circling parts and providing other annotations in real time.
Microsoft Remote Assist in action with expert walking the technician through the task. Photo: Microsoft
Microsoft is not the first company to create such a solution. ScopeAR announced RemoteAR 4 months ago, a similar product, but Microsoft has the advantage of building it natively into Windows 10 and all that entails including data integration to update the various repositories with information after the repair is complete.
The other business scenario the company is announcing today is called Dynamics 365 Layout. A designer can create a 3D representation of something like a store or factory layout in CAD software, view the design in 3D in HoloLens, and adjust it in real time before the design goes live. As Microsoft’s Lorraine Bardeen, who has the cool title of General Manager for Microsoft Mixed Reality says, instead of creating cardboard mockups and adjusting your 3D CAD drawing on your computer as you find issues in your design, you can put on your HoloLens and make adjustments in a virtual representation of the layout and it adjusts the CAD drawing for you as you make changes.
Laying out the pieces on a factory floor using Dynamics 365 Layout. Photo: Microsoft
Bardeen says the company has worked with customers to find real-world use cases that would save time, effort and money using mixed reality with HoloLens. They cite companies like Chevron, Ford and ThyssenKrupp Elevators as organizations actively embracing this kind of technology, but it still not clear if HoloLens and mixed reality will become a central component of business in the future. These two solutions GA on October 1st and we will begin the process of finding out.
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