Spatial.io, a company once rooted in the world of mixed reality, is now on its third major pivot since its founding in 2017. The latest transformation? A bold leap into the fast-growing world of social gaming. But to understand how Spatial got here, we need to rewind a few years and explore the twists and turns that led to this moment.
From AR Workspaces to NFTs—and Now Gaming
When Spatial.io first launched, it had its sights set on becoming a game-changer in augmented reality (AR) for the workplace. Partnering with Microsoft, the company developed AR collaboration tools for HoloLens, an innovative yet niche piece of hardware. However, they quickly discovered that VR and AR-driven workspaces weren’t catching on as expected. While the technology was cool, most users preferred simpler ways of connecting—on their web browsers, for instance, rather than through bulky headsets.
By 2021, the team at Spatial realized that they needed to evolve. The tech world was buzzing with talk of NFTs, so the company dove headfirst into building virtual showrooms where users could display their NFT collections. Despite the hype, engagement didn’t explode the way they hoped. Once again, most users interacted with Spatial through their phones or browsers, skipping the VR experience altogether.
It was time to rethink the strategy again.
Enter Social Gaming
In a tech landscape where platforms like Roblox and Fortnite are reshaping how people play and create, Spatial saw an opportunity. The company recently pivoted to focus on social gaming, leaning into user-generated content (UGC) as the driving force for its platform. And they’re not just dabbling—Spatial is aiming to create the next big space for casual and indie games, much like Roblox has done.
They’ve already made a strong move by hiring Charles Ju, a veteran of the mobile gaming industry, as their new head of gaming. Under Ju’s leadership, Spatial has launched a series of browser-based games with catchy titles like Punch Hero and Mostly Only Up. But their ambition goes beyond their own creations. Spatial wants to empower independent developers to build games for their platform using Unity, a popular game development engine. This could unlock endless potential, allowing millions of developers to create and share games in an instant.
Why Browser-Based Games?
One of the most interesting aspects of Spatial’s gaming shift is its focus on the browser. By delivering games that don’t require app downloads or expensive consoles, Spatial aims to remove barriers for both players and developers. As co-founder Jacob Loewenstein puts it, the real innovation is in distribution: “The games are not super different from a really great mobile game. The difference is in how you access them.”
And there’s a financial incentive too. By sidestepping mobile app stores, developers don’t have to give up a hefty 30% of their revenue to platforms like Apple or Google. Instead, Spatial offers a straightforward deal—developers keep 50% of their game’s earnings, a compelling proposition compared to the complex payout structures on platforms like Roblox.
Betting Big on a Booming Market
Spatial’s pivot to gaming isn’t just a shot in the dark—it’s backed by real market momentum. The global gaming industry is projected to rake in $187.7 billion this year, even after a slight slowdown in 2022. As consumer habits shift, more people are spending time in games that prioritize social interaction and UGC, which is why Spatial sees this as the perfect moment to jump in.
The success of Roblox is particularly inspiring for Spatial. Despite content moderation issues and rising operational costs, Roblox continues to attract more users and drive engagement. It’s clear that people love creating and playing user-generated games, and Spatial is positioning itself to tap into this trend.
Challenges Ahead: Moderation and Scaling
While the move into gaming is exciting, it’s not without challenges. One of the biggest hurdles facing UGC platforms is content moderation. With so many players and creators involved, how do you keep things safe and civil? For now, Spatial relies on manual moderation handled by just two employees, but the company knows that’s not a long-term solution. As their platform scales, they’ll need to implement AI tools to manage the influx of content and ensure a positive environment for all users.
Of course, scaling is the name of the game for any startup, and Spatial is no exception. With $48 million in venture capital funding under its belt, the company is under pressure to prove that its latest pivot can lead to sustainable growth.
Will the Third Pivot Stick?
This is the third reinvention in seven years for Spatial.io, but this time it feels like they’ve found their sweet spot. By tapping into the massive and rapidly evolving gaming market, they’ve positioned themselves to be a major player in the world of browser-based social games. The combination of user-generated content, browser accessibility, and a developer-friendly revenue model could give Spatial the edge it needs.
As the gaming world continues to grow, so too does the appetite for new ways to play, create, and connect. Spatial’s journey may have been filled with pivots, but this latest move into social gaming could finally be the one that sticks. Only time will tell if they’ve cracked the code, but one thing’s for sure: they’re playing to win.