2025: The Year XR Goes Mainstream?

The CEO and Founder of cutting edge, immersive gaming studio, MixRift discusses XR in 2025 and whether this year is the year it will likely go mainstream. From innovations in gaming to the evolving extended reality landscape, he dives into what could be coming next. He also sheds light on the role of today’s biggest buzzword – AI – and how what most people would think would transform the sector will hardly move the needle.

Like any innovation, there can be a degree of scepticism when it comes to extended reality (XR). Any perceived stumble is jumped on as an example of how XR technology won’t ever go mainstream, while many traditional technology powerhouses appear to be cautious in their approach.

Yet the trends suggest that 2025 is going to be a major year for XR, particularly in gaming.  From new, more accessible hardware to the impact of demographics and the role of AI, here are the themes shaping gaming XR in 2025.  

Innovative hardware to take centre stage

Much of the focus in XR is on hardware, and in particular headsets. In many ways, this is a microscosm for the space as a whole with both successes and struggles. Meta appears to have found the right formula for its approach, offering both the powerful Quest 3S and a more affordable Quest 3S following the sale of more than 20 million Quest 2 headsets. Elsewhere, while Apple’s Vision Pro might not have set the world alight, there are rumours that not only will the Vision Pro 2 likely debut in late 2026, but that a more budget-friendly version is in development as well. Additionally, the leak of the Asus ROG VR (Tarius) headset might be on its way – set to be the first third party hardware to use Meta’s Horizon OS, and there’s SAmsung’s Moohan XR headset, developed with Google and Qualcomm, which made headlines at the recent Mobile World Congress (MWC) exhibition.

It is important to remember that there is more to XR than VR headsets, however. Google recently announced new smart glasses, while Ray-Ban reported that its Meta glasses are the top selling product in 60% of its stores in EMEA.

These wearables may not be gaming devices, but what they are is another way into XR. The potential for these glasses to blend the physical and digital opens up unprecedented possibilities for game developers and players alike. Plus, if a person uses an XR device in one part of their life, they are more likely to use it in others.

XR meets gaming shifts

The gaming landscape in general is undergoing a major transformation. Meta recently confirmed that over 70% of time on Quest is spent in free-to-play apps, highlighting a shift toward in-app purchases as the fastest-growing revenue stream. This and the younger generations, such as Alpha and Z, are using gaming not just for play, but to communicate and collaborate. One analyst recently suggested that gaming was replacing social platforms for certain demographics, highlighting how Roblox’s penetration among 16-19-year-olds was 35% in Q3 24, while its fastest growing age group was 17-24-year-olds.

This highlights a clear shift towards communal experiences. We're witnessing a surge in social gaming, both in physical spaces and virtual realms like Horizon Worlds. Today's players aren't just gaming – they're socialising and immersing themselves in personalised entertainment experiences. As this trend gains momentum, the future of gaming will increasingly revolve around interpersonal connections, emphasising shared experiences that extend beyond the game itself. This evolution points to a future where gaming serves as a powerful platform for social interaction and collective entertainment.

These experiences are immersive, and while the likes of Roblox are predominantly still accessed via consoles, mobiles and PCs, the next step will be towards devices that bring additional layers of immersion: XR hardware.

AI: coming sooner than you think

AI is making waves in many industries, including the broader gaming space, but its  impact on XR gaming has so far been less pronounced…until now. This could have been largely due to the rapid changes in XR platforms, which may not have provided sufficient stable content for LLMs to learn from effectively. However, as AI technology advances, we have seen AI explode into various industries and make a big impact. Thus it was inevitable that AI would crossover into Gaming, and with Meta’s recent announcement unveiling Aria Gen 2, an advanced research-focused smart glasses platform with enhanced sensors, eye-tracking, and AI capabilities – it is testament to how quickly the gaming industry evolves.

We can expect to see AI’s influence continue to grow in various aspects of gaming. AI-driven graphics are likely to become more prevalent across different gaming platforms, enhancing visual fidelity and realism. Additionally, AI could revolutionize storytelling and character development, creating more dynamic and responsive narratives. As these AI-powered innovations mature in traditional gaming, they will likely find their way into XR experiences, potentially transforming the immersive gaming landscape.

The opportunities for developers are significant; being able to code or create content faster would support small teams and help level the playing field when up against AAA studios. Yet there is also the danger that being able to produce more content faster will lead to increased levels of poor quality. This could hamper XR penetration, if users cannot find the sort of engaging, immersive experiences they expect.

Is XR going mainstream?

With any innovation, we are rarely aware of the tipping point, where something goes from niche to mainstream. Will 2025 be the year XR reaches that moment? It’s hard to say, but with hardware capabilities both improving and broadening, barriers to entry will fall. It is up to developers to make sure that the content available captures users’ attention; while having the right device is important, what keeps people coming back are great experiences.

These developments will lay crucial groundwork, paving the way for more seamless integration of AI and other emerging technologies in the years to follow. As the ecosystem matures, we can expect to see increasingly sophisticated and accessible mixed reality applications across gaming, entertainment, and beyond.