#1232 – Entertainments New Hospitality – Part 1

AI Constructed Brief

The early 2025 entertainment industry calendar has been marked by a surge in trade shows and expos, underscoring rapid innovation and shifting fortunes in the Location-Based Entertainment (LBE) and consumer gaming sectors. Notable launches include Two Bit Circus’s “Dream Park,” leveraging Meta Quest 3’s mixed reality for immersive, “phygital” experiences, and Snap Inc.’s plans to enter LBE with AR glasses. The sector is seeing significant M&A activity, highlighted by Herschend’s acquisition of Palace Entertainment’s US assets from Parques Reunidos, signaling strategic realignment and consolidation. Meanwhile, the consumer games industry faces contraction, with layoffs, declining investment, and key IPs like Niantic’s Pokémon Go studio sold for $3.5 billion as firms pivot to AR platforms. Competitive socializing is booming, with new tech-driven concepts in bowling, shuffleboard, and shooting games targeting hospitality venues. Overall, the sector is experiencing both robust innovation and structural upheaval, with portable gaming and LBE emerging as key growth arenas. 

Full Stinger Report

The crowded show and expo calendar of the beginning of 2025 continued, and we look at the continuing impact that this has for the Location-Based Entertainment (LBE) sector. Drawing on new trends and technology applications. But first, we report on the consumer game scene landscape.  

Consumer Development Impact

Amusement Expo International 2025 took place around the same time as the Game Developers Conference (GDC) in San Francisco. And this location was the host of the grand launch of a new MR development from amusement industry veterans. The team behind Two Bit Circus launched ‘Dream Park’ at the game developers conference, (along with an appearance at AEI as covered in our report earlier). The concept is to create an augmented representation of physical elements in an open space, so creating a virtual playscape and theme park. Like stepping into a real-world ‘Super Mario’ game. The concept uses the MR capabilities of Meta Quest 3 headsets, and a unique software platform to render the synthetic elements into the real-world vision, fixed in place. Players race round the physical space interacting with the digital elements collecting virtual coins.  

The plan is to open the concept with an entrance fee within a disused 2,300-sq., ft., parking lot in Los Angeles – allowing groups of players to enjoy the “Phygital” experience. The concept had been tested on the sidewalk, outside the relaunched popup Two Bit Circus venue and is now being rolled at 3rd St Promenade walking mall in Santa Monica. The team from Two Bit Circus bringing an impromptu demonstration of the system to Vegas at the AEI’25 VR Arcade summit.

Speaking of the previous AEI event, some clarifications too our VR Arcade Summit coverage. The organizers pointed out that we had got our wires crossed regarding some of the sponsors. While StrikerVR and SynthesisVR did not actually present this year, Snap Inc., and their ‘Spectacles’ platform did take to the stage, and revealed they are planning to enter the LBE sector with their AR glasses, Snap OS and camera kit. Looking at large scale AR experiences. AR/MR away from VR, was also in vogue, with panellists from Enklu – who were also exhibiting on the show floor their ‘Verse Immersive’ platform. While VR was still touched on as we reported, presenters included Limitless Flight and their innovative ‘JUMP’ wingsuit simulator experience. Also, UNIVRSE was in attendance in one panel session, revealing more of their plans of their VR free-roaming exhibition platform. Innovative VR operation was also discussed with panellist from Mirra Immersive, having just opened their first venue last year – and looking at turning the experience into a FEC standalone release. Along with other well-known presenters, and sponsors HTC VIVE, Zero Latency, VR Cave and LAI Games, the VR Arcade Summit proved valuable for those that attended with a great Alien Themed mixer. Plans for a 2026 season are currently in negotiation.

Regarding news that coincided with GDC’25 in the AR and MR experience scene and the developers of the vastly popular ‘Pokemon Go’ AR experience, Niantic announced that they had sold for $3.5b their game development studio business to Scopely, the mobile game operation owned by Saudi Arabia’s Savvy Games Group. The operation includes the licenses for AR games developed by Niantic as well as the ‘Pokemon Go’ properties that still has millions of active accounts. Niantic had previously been valued at $9b – with the sale they will now focus their business on promoting and developing their AR world building platform (‘Lightship’) and supporting the connectivity of creating virtual environments within the real world. This following a 300-staff layoff 24-months ago after the cancelation of their own plans to launch an AR headset – and after the show and announcement Niantic would continue with another round of layoffs as they restructured for their new reality. 

The changes in fortune of the AR gaming scene have been immense – following the global success of ‘Pokemon Go’ in 2016, there has not been a subsequent successful title – Niantic having released numerous games including licensed Harry Potter and pet themed titles – with little penetration or success. As with the implosion of the high hopes of Magic Leap and their AR based platform (also acquired by the Saudi Arabian group), the high expectations and grandiose promises failed to materialize. Even Apple’s launch of the Vision Pro headset has failed to define the AR / MR market – Niantic now betting all on their AR platforms hopes to define the space.  

Other GDC’25 developers saw Vicon pushing their marker-less tracking platform. Seen originally in 2023, the company went all out with demonstrations on the convention floor of the consumer game developer mecca. The reality is that most MoCap is farmed out to external developers, and while this new system will bring this closer towards smaller studio utilisation, the “Consumer Game Apocalypse” has impacted most R&D spend. One industry that will obviously benefit from the Vicon system is however LBE VR – as the optical pattern wallpaper we have all become accustomed to in Free-Roaming VR is superseded by this new tech. Funny enough, many consumer developers took the time to visit SandboxVR’s facility in the Bay during their GDC attendance – an eye on new developments – especially as consumer VR flounders. 

Fundamentally GDC’25 was a telling glimpse into the state of the consumer games industry – still incredibly profitable, it has been decimated by the withdrawal of investment, and massive job layoffs across the development and media aspects of the business. A factor of poor business decisions and bloat. The continued haemorrhaging was evident by the number of attendees looking for new positions while at the show. Even with the launch of new portable game systems from Sony, Nintendo, Microsoft and Valve – the restructuring of the sector offered a stark warning for other aspects of the digital entertainment ecosystem.  

In Conclusion – The importance to the consumer game trade of GDC’25 was reflected in a strong 30,000 attendance, viewing some 400 exhibitors, and attending some 750 sessions, workshops, and roundtable discussions. The event acting not just as a barometer to the sectors health but also reflecting the spate of layoffs and restructuring impacting the sector. The biggest developments in the trade, still seemed to be the impact on the Videogame media sector, as changes in online game sites saw imploding brands and mass closures.  

2025 will be seeing several new portable gamedeck launches, such as the Nintendo Switch 2 and rumored units from Sony, Microsoft and Valve. While this generation of game consoles seems to have reached its zenith portable gaming has been on the ascendance. The changing landscape in videogame studio investment has also started to see developers turning to other entertainment mediums, with some even looking at LBE development.  

VR Content Impact

Regarding consumer VR game content that has found a successful home being deployed in VR Arcades and following on from the previous Stinger Report coverage of the removal from some licensed VR content. First the distributors of popular titles ‘Space Pirates Trainer’ – developed by I-Illusions and ‘Fisherman’s Tale’ developed by InnerspaceVR revealed they had removed these popular VR games from their library. The next shoe dropped as it was revealed that game developer Owlchemy Labs would be removing their hit titles ‘Job Simulator’ and ‘Vacation Simulator’ from all commercial marketplaces. In the statement posted to operators, the developer confirmed their games had become “staples” of VR arcade worldwide, but sites that the commercial (LBE) space has not been financially sustainable for them. 

The issues of continued expense of supporting the content for LBE application, as well as the dwindling license fees being paid by VR arcade operators, while the consumer VR release continued to generate revenue. Speculated as factors causing the planned withdrawal by Owlchemy Labs. The developer was acquired by Google in 2017. Mirroring what was seen a few years back with the Meta acquired Beat Games removing ‘Beat Saber VR’ from commercial entertainment usage in 2020. With the changing fortunes in consumer VR, it is expected that pressure will be applied on other studios to fall into line regarding their commercial marketplace approach. For the record in recent reporting Meta revealed the best-selling VR consumer content was in first place ‘Beat Saber’, and then second and third place held by ‘Job Simulator’ and ‘SuperHot VR’ – games initially removed from commercial utilisation, (though SuperHot VR is reported to still be available through a limited commercial license).

After reporting these developments, just as we went to the wire, it was revealed that Meta were undertaking another round of layoffs, this time impacting their VR game studio operation. It was reported that teams within the Oculus Studio operation – comprising VR game app developers acquired by Meta – were “undergoing shifts in structure”. This euphemism referring to laying off staffers across each of the studios. Additional layoffs in operations for Quest hardware development, were also reported – seeing a total of 100 layoffs. As the dust settles it is expected that a better picture of Meta’s plans going forward in VR will be revealed, as it pivots away from the tech towards an AR / MR future. With suggestions of a complete downsizing of the Reality Labs operation by September.     

Merger & Acquisition Momentum

The big news before the doors were thrown open on AEI’25 was that Herschend and Parques Reunidos have signed a definitive agreement under which Herschend will acquire all of Palace Entertainment’s 20 US entertainment properties from Parques Reunidos. This agreement represents a significant milestone for both organizations—supporting Herschend’s strategic expansion in family entertainment and hospitality while allowing Parques Reunidos to reinforce its strategic focus on its core European market. Many of the 20 US facilities are part of the amusement operation of Palace – including their ‘Boomers!’ chain, along with popular amusement parks such as Kennywood.  

This M&A news was not the only being discussed on the AEI show floor. The current climate in the amusement scene while seeing buoyant sales, is still impacted by many of the older operations carrying debt and being vulnerable in the face of new leaner operations raising in influence in the market. During the heated late-night discussions, more than one immanent merger was discussed regarding a prominent name in the North American amusement sector. We will be hoping to get more confirmation of this development and report on the outcome of recent discussions that could see another merger before the middle of the year – if not more!  

Hospitality and Socializing 

Taking place a few weeks after AEI’25, in the same Las Vegas convention space, and the 39th Bar & Restaurant Expo (BRE) attracted some 500 exhibitors to the eclectic mix of beverages, cocktails, hospitality and entertainment that is BRE. The show was also held alongside International Pizza Expo (IPE) – and event that was held close to National Pizzaday that would have the industry seeing over 12.5m pizzas sold on Super Sunday. 

The importance of the restaurant, bar and nightclub scene on the new direction of “Competitive Socializing” was not lost on many attending – while the BRE and IPE has strong attendance from the amusement and entertainment trade. Examples included the bowling scene represented at the hospitality event by the likes of Brunswick Bowling showing off their ‘Duckpin Social’ specially developed for the social entertainment environment. Along with exhibitor Funk Bowling USA promoting their investment in creating compelling boutique bowling environments for the new style of operation.  

The dedicated competitive socializing entrants at the BRE’25 event included Conductr – on the booth they promoted their ‘Supercharge Shuffle’ shuffleboard platform for the competitive socializing scene. Launched around this time was a brand new variant of their shuffleboard social entertainment platform. The new version has been waterproofed and ruggedized, designed for cruise ships, rooftops, terraces and beachfront venues. And the first systems have already been installed on a new cruise ship. The current shuffleboard system has already seen 80 installations – this new variant hoping to spread the deployment of the brand to wider markets. 

Launched a few weeks before the show, Game Volt, the division of Conductr launched ‘Hotshots’, a brand-new Competitive Socializing experience – offering a high-end digital shooting game designed for bars, restaurants and entertainment venues. Trailed during SIE’25 the full release offers a twin-shotgun setup (including haptic feedback) and projection enclosure, all supported by the proven touchscreen system. The system will start sales in July and is currently on Loc-test at a Dallas Dave & Buster’s – though no word if this will be deployed across the D&B Social Bay installations.  

The competitive socializing shooting market has been defined by venues such as Clay’s – along with other similar sites with Point Blank chain in the UK, and the new PAN store in France. During the SIE’25 event saw SimWay presenting their proven shooting game platform – including a wild west shooting gallery experience. While developer LaserShot has pivoted from their sports and shooting training systems to deployment in entertainment venues. Game Volts platform however has been purpose build for competitive socializing, and we look forward to seeing how it will compete in a crowded market. Feel a little bit of history repeating when looking at the ‘Hotshots’ set up – drawn back to 1977 an NAMCO’s launch of ‘Shoot Away’ – the electromechanical amusement piece that comprised a rudimentary projection screen and twin shotguns. Are we about to see another wave of successful sales in this genre  

Conductr was also busy with a third new announcement from the company with ‘Glow Court’ – a LED floor and wall court-based arena, offering active entertainment, with gamified basketball and kicking ball activities. The system sees its first installation on a new cruise ship part of the Norwegian Cruise Line (NCL). The immersive court platform represents a more open interpretation of ‘The ARENA’ interactive LED floor-based attraction – that we have seen installed at a number of sites, including part of the Dave & Buster’s Social Bay initiative.  

Returning to the BRE’25 Vegas gathering, and another big showing for 501 Fun, who partnered with SEGA Amusement International. The Social entertainment company brought their ‘AR Darts’, projection mapped platform, along with their ‘Interactive Darts’ system which incorporates gamification of the experience. The company had not brought the ‘Interactive Mini Golf’ system to the Vegas show as it is still being finalized. Expected to be next seen at the DEAL show in the coming weeks on the ASI booth.   

Those corporations that have moved over from the amusement trade to supporting BRE included the likes of LASERTRON – who presented their ‘Krazy Dart’ projection mapped enclosure, building on the same formfactor as their axe throwing platform – all supported by touchscreen. Betson Enterprises also took space at the show to present suitable hospitality amusement – obviously the Play Mechanix ‘Big Buck Hunter’ series a mainstay for many taverns, and bar locations – the social entertainment scene expanding this and other games reach. The extensive line up of new beverages, and hospitality services on the Las Vegas show floor was also supported by a growing representation of robotic services. Exhibitor ToDo Robotics one of many showing their culinary automation with the Next Robot ‘Robby: Cocking Robot’.