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Apple’s dangerous path

By Lucas Matney

Hello friends, and welcome back to Week in Review.

Last week, we dove into the truly bizarre machinations of the NFT market. This week, we’re talking about something that’s a little bit more impactful on the current state of the web — Apple’s NeuralHash kerfuffle.

If you’re reading this on the TechCrunch site, you can get this in your inbox from the newsletter page, and follow my tweets @lucasmtny


the big thing

In the past month, Apple did something it generally has done an exceptional job avoiding — the company made what seemed to be an entirely unforced error.

In early August — seemingly out of nowhere** — the company announced that by the end of the year they would be rolling out a technology called NeuralHash that actively scanned the libraries of all iCloud Photos users, seeking out image hashes that matched known images of child sexual abuse material (CSAM). For obvious reasons, the on-device scanning could not be opted out of.

This announcement was not coordinated with other major consumer tech giants, Apple pushed forward on the announcement alone.

Researchers and advocacy groups had almost unilaterally negative feedback for the effort, raising concerns that this could create new abuse channels for actors like governments to detect on-device information that they regarded as objectionable. As my colleague Zach noted in a recent story, “The Electronic Frontier Foundation said this week it had amassed more than 25,000 signatures from consumers. On top of that, close to 100 policy and rights groups, including the American Civil Liberties Union, also called on Apple to abandon plans to roll out the technology.”

(The announcement also reportedly generated some controversy inside of Apple.)

The issue — of course — wasn’t that Apple was looking at find ways that prevented the proliferation of CSAM while making as few device security concessions as possible. The issue was that Apple was unilaterally making a massive choice that would affect billions of customers (while likely pushing competitors towards similar solutions), and was doing so without external public input about possible ramifications or necessary safeguards.

A long story short, over the past month researchers discovered Apple’s NeuralHash wasn’t as air tight as hoped and the company announced Friday that it was delaying the rollout “to take additional time over the coming months to collect input and make improvements before releasing these critically important child safety features.”

Having spent several years in the tech media, I will say that the only reason to release news on a Friday morning ahead of a long weekend is to ensure that the announcement is read and seen by as few people as possible, and it’s clear why they’d want that. It’s a major embarrassment for Apple, and as with any delayed rollout like this, it’s a sign that their internal teams weren’t adequately prepared and lacked the ideological diversity to gauge the scope of the issue that they were tackling. This isn’t really a dig at Apple’s team building this so much as it’s a dig on Apple trying to solve a problem like this inside the Apple Park vacuum while adhering to its annual iOS release schedule.

illustration of key over cloud icon

Image Credits: Bryce Durbin / TechCrunch /

Apple is increasingly looking to make privacy a key selling point for the iOS ecosystem, and as a result of this productization, has pushed development of privacy-centric features towards the same secrecy its surface-level design changes command. In June, Apple announced iCloud+ and raised some eyebrows when they shared that certain new privacy-centric features would only be available to iPhone users who paid for additional subscription services.

You obviously can’t tap public opinion for every product update, but perhaps wide-ranging and trail-blazing security and privacy features should be treated a bit differently than the average product update. Apple’s lack of engagement with research and advocacy groups on NeuralHash was pretty egregious and certainly raises some questions about whether the company fully respects how the choices they make for iOS affect the broader internet.

Delaying the feature’s rollout is a good thing, but let’s all hope they take that time to reflect more broadly as well.

** Though the announcement was a surprise to many, Apple’s development of this feature wasn’t coming completely out of nowhere. Those at the top of Apple likely felt that the winds of global tech regulation might be shifting towards outright bans of some methods of encryption in some of its biggest markets.

Back in October of 2020, then United States AG Bill Barr joined representatives from the UK, New Zealand, Australia, Canada, India and Japan in signing a letter raising major concerns about how implementations of encryption tech posed “significant challenges to public safety, including to highly vulnerable members of our societies like sexually exploited children.” The letter effectively called on tech industry companies to get creative in how they tackled this problem.


other things

Here are the TechCrunch news stories that especially caught my eye this week:

LinkedIn kills Stories
You may be shocked to hear that LinkedIn even had a Stories-like product on their platform, but if you did already know that they were testing Stories, you likely won’t be so surprised to hear that the test didn’t pan out too well. The company announced this week that they’ll be suspending the feature at the end of the month. RIP.

FAA grounds Virgin Galactic over questions about Branson flight
While all appeared to go swimmingly for Richard Branson’s trip to space last month, the FAA has some questions regarding why the flight seemed to unexpectedly veer so far off the cleared route. The FAA is preventing the company from further launches until they find out what the deal is.

Apple buys a classical music streaming service
While Spotify makes news every month or two for spending a massive amount acquiring a popular podcast, Apple seems to have eyes on a different market for Apple Music, announcing this week that they’re bringing the classical music streaming service Primephonic onto the Apple Music team.

TikTok parent company buys a VR startup
It isn’t a huge secret that ByteDance and Facebook have been trying to copy each other’s success at times, but many probably weren’t expecting TikTok’s parent company to wander into the virtual reality game. The Chinese company bought the startup Pico which makes consumer VR headsets for China and enterprise VR products for North American customers.

Twitter tests an anti-abuse ‘Safety Mode’
The same features that make Twitter an incredibly cool product for some users can also make the experience awful for others, a realization that Twitter has seemingly been very slow to make. Their latest solution is more individual user controls, which Twitter is testing out with a new “safety mode” which pairs algorithmic intelligence with new user inputs.


extra things

Some of my favorite reads from our Extra Crunch subscription service this week:

Our favorite startups from YC’s Demo Day, Part 1 
“Y Combinator kicked off its fourth-ever virtual Demo Day today, revealing the first half of its nearly 400-company batch. The presentation, YC’s biggest yet, offers a snapshot into where innovation is heading, from not-so-simple seaweed to a Clearco for creators….”

…Part 2
“…Yesterday, the TechCrunch team covered the first half of this batch, as well as the startups with one-minute pitches that stood out to us. We even podcasted about it! Today, we’re doing it all over again. Here’s our full list of all startups that presented on the record today, and below, you’ll find our votes for the best Y Combinator pitches of Day Two. The ones that, as people who sift through a few hundred pitches a day, made us go ‘oh wait, what’s this?’

All the reasons why you should launch a credit card
“… if your company somehow hasn’t yet found its way to launch a debit or credit card, we have good news: It’s easier than ever to do so and there’s actual money to be made. Just know that if you do, you’ve got plenty of competition and that actual customer usage will probably depend on how sticky your service is and how valuable the rewards are that you offer to your most active users….”


Thanks for reading, and again, if you’re reading this on the TechCrunch site, you can get this in your inbox from the newsletter page, and follow my tweets @lucasmtny

Lucas Matney

Korean 3D spatial data tool startup Urbanbase closes $11.1M Series B+ round

By Kate Park

Urbanbase, a Seoul-based company that develops a 3D spatial data platform for interior planning and design, announced today it has raised $11.1 million (13 billion won) in a Series B+ round as it scales up.

This round of funding was led by Hanwha Hotel & Resort, which is a subsidiary of South Korean conglomerate Hanwha Corporation.

Urbanbase, founded in 2013 by chief executive officer and a former architect Jinu Ha, has now raised $20 million (approximately 23 billion won) in total.

Existing investors did not join this round. The company had raised Series A funding of $1.8 million and an additional $1.2 million in 2017 and its first Series B round in April 2020, from backers that included South Korea-based Shinsegae Information & Communication, Woomi Construction, SL Investment, KDB Capital, Shinhan Capital, Enlight Ventures, CKD Venture Capital, and Breeze Investment, Ha said.

The latest funding will be used for enhancing its B2B SaaS, investing in R&D for advanced virtual reality (VR), augmented reality (AR) and 3D tools, which are considered core technologies of metaverse that is its new business Urbanbase plans to enter, according to Ha. Global metaverse market size is projected to increase $280 billion by 2025 from $30.7 billion in 2021, based on Strategy Analytics’ report.

Companies that focus on opportunities in the so-called “metaverse” have been growing as part of a next-generation approach to building viable business models in areas like virtual and augmented reality, and all the hardware and software and new tech that are being built for them. Big tech corporations, ranging from Facebook, Intel to Microsoft, are targeting to move in the area. Apple also waded into the area of virtual reality, working on developing a high-end VR headset.

Urbanbase also plans to upgrade its home interior software platform, Urbanbase Studio, that has functions to transform 2D indoor space images into 3D displays via Urbanbase’s patented algorithm, visualize interior products in augmented reality and analyze spatial images based on the AI technology.

Urbanbase claims 50,000 monthly active users with 70,000 registered B2C users. The company has about 50 B2B customers.

“Most of our B2B clients are large conglomerates in South Korea and Japan, for example, LG Electronics, Japan-based Mitsubishi Real Estate Service, Nitori Holdings, Dentsu Group and SoftBank, but we would like to extend our B2B clients base to small, midsized companies and bring more B2C users after closing the Series B+ funding,” Ha mentioned.

Urbanbase is seeking an acquisition target in prop-tech and construction technology sectors, Ha told TechCrunch. Urbanbase currently focuses on developing the interior tools for apartment buildings because about 70-80 percent of total households in South Korea and Japan live in apartments, Ha said, adding that it will diversify its portfolio by acquiring a startup that covers different types of residence.

It currently operates the platform in Korean and Japanese, but it will add English language service prior to entering in Singapore in the end of 2021, Ha said.

After community backlash, Pokémon GO reinstates a COVID safety and accessibility feature

By Amanda Silberling

Pokémon GO announced yesterday that it will permanently keep an in-game feature that made the game easier to play while social distancing. Introduced at the onset of the COVID-19 pandemic, the feature doubled the interaction radius around key augmented reality landmarks that are essential to gameplay. Though Niantic — parent company to Pokémon GO — removed the feature earlier this month, it chose to permanently reinstate it after weeks of community- and creator-led backlash.

Trainers – we’re looking forward to sharing our plans as a result of the task force on September 1, but one thing does not have to wait! From now on, 80 meters will be the base interaction radius for PokéStops and Gyms globally. (1/2)

— Pokémon GO (@PokemonGoApp) August 25, 2021

Pre-pandemic, Pokémon GO players needed to be within 40 meters of a PokéStop or Gym to interact with it, but with the now-permanent change, the radius is expanded to 80 meters. Incidentally, disabled players found that this feature made the game more accessible to people with limited mobility. As one of the first mainstream AR mobile games, Pokémon GO is virtually unplayable if you’re unable to travel to real-world landmarks like PokéStops and Gyms — so allowing users to interact with these landmarks from farther away (for example, if a wheelchair-user can’t journey off of a paved sidewalk) opened the game up to new players.

Because Pokémon GO has long positioned itself as a game that encourages real-world exploration, worldwide lockdowns posed a unique challenge for Niantic. But by making some small changes — like expanding the interaction radius by just 40 meters, increasing Pokémon spawns and making it easier to obtain more PokéBalls — the game became easier to play from home.

These changes didn’t break the game or contradict its adventurous spirit, which made the rollback of a well-loved upgrade confusing for players, especially in light of the spreading Delta variant. From a financial standpoint, the app thrived during the pandemic. In 2020, Pokémon GO had its best-earning year since its launch in 2016, earning over $1 billion. According to app analytics firm Sensor Tower, this upward trend continued for Pokémon GO in the first half of 2021, with $642 million. This marked a 34% increase in consumer spending compared to the first half of 2020, when it made $479 million.

Dear @NianticLabs your community needs you to address the recent in-game changes to #PokemonGO. #HearUsNiantic we love this game and the communities we've built together. This game thrives on inclusivity and diversity. Show us you understand that. pic.twitter.com/1N6EAaM5m2

— ZoëTwoDots 🎀 (@_ZoeTwoDots) August 5, 2021

After Niantic reduced the interaction radius, Pokémon GO content creators and community members worked together to write an open letter to Niantic, which caused the hashtag #HearUsNiantic to trend on Twitter. The letter expressed that the increased radius made the game safer, more accessible and less intrusive.

Some players organized a boycott of the game on August 5th, which was referred to as “Pokémon No Day.” That same day, Niantic issued a response letter addressed to the Pokémon GO community.

“Encouraging people to explore, exercise and safely play together in person remains Niantic’s mission. The health and wellbeing of players is our top priority,” Niantic’s statement read. The company formed an “inter cross-functional team” to address these concerns and invited prominent Pokémon GO content creators to share community feedback. While expanding the interaction radius is the first result of the task force, Pokémon GO tweeted that it will share more findings on September 1.

TechCrunch asked Niantic why it initially chose to rebuke these gameplay updates despite positive community feedback, increased revenue and an ongoing pandemic, but Niantic declined to comment.

Despite players’ visible negative response on social media, Sensor Tower told TechCrunch that it didn’t see any change in consumer spending or active users for Pokémon GO around the time of the in-game strike. However, there was a significant uptick in negative App Store reviews.

Though the wider interaction radius is now reinstated, some players remain frustrated, since community leaders had previously provided this feedback in June after Niantic announced its plans to roll back these changes.

“Why did it have to take this giant community movement for any of our feedback to be heard?” said creator ZoëTwoDots in a YouTube video.

AI voice, synthetic speech company LOVO gets $4.5M pre-series A funding

By Kate Park

“Voice skins” have become a very popular feature for AI-based voice assistants, to help personalize some of the more anodyne aspects of helpful, yet also kind of bland and robotic, speaking voices you get on services like Alexa. Now a startup that is building voice skins for different companies to use across their services, and for third parties to create and apply as well, is raising some funding to fuel its growth.

LOVO, the Berkeley, California-based artificial intelligence (AI) voice & synthetic speech tool developer, this week closed a $4.5 million pre-Series A round led by South Korean Kakao Entertainment along with Kakao Investment and LG CNS, an IT solution affiliate of LG Group.

Its previous investor SkyDeck Fund and a private investor, vice president of finance at DoorDash Michael Kim, also joined the funding.

The proceeds will be used to propel its research and development in artificial intelligence and synthetic speech and grow the team.

“We plan on hiring heavily across all functions, from machine learning, artificial intelligence and product development to marketing and business development. The fund will also be allocated to securing resources such as GPUs and CPUs,” co-founder and chief operating officer Tom Lee told TechCrunch.

LOVO, founded in November 2019, has 17 people including both co-founders, chief executive office Charlie Choi and COO Lee.

The company plans to double down on improving LOVO’s AI model, enhance its AI voices and develop a better product that surpasses any that exists in the current market, Lee said.

“Our goal is to be a global leader in providing AI voices that touches people’s hearts and emotions. We want to democratize limitations of content production. We want to be the platform for all things voice-related,” Lee said.

With the mission, LOVO allows enterprises and individual content creators to generate voiceover content for using in marketing, e-learning, customer support, movies, games, chatbots and augmented reality (AR) and virtual reality (VR).

“Since our launch a little over a year ago, users have created over 5 million voice content on our platform,” co-founder and CEO Choi said.

LOVO launched its first product LOVO Studio last year, which provides an easy-to-use application for individuals and businesses to find the voice they want, produce, and publish their voiceover content. Developers can utilize LOVO’s Voiceover API to turn text into speeches in real-time, integrated into their applications. Users also can create their own AI voices by simply reading 15 minutes of script via LOVO’s DIY Voice Cloning service.

LOVO owns more than 200 voice skins that provide users with voices categorized by language, style, and situation suited for their various needs.

The global text to speech (TTS) market is estimated at $3 billions, with the global voiceover market at around $10 billion, according to Lee. The Global TTS market is projected to increase $5.61 billion by 2028 from $1.94 billion in 2020, based on Research Interviewer’s report published in August 2021.

LOVO already secured 50,000 users and more than 50 enterprise customers including the US-based J.B. Hunt, Bouncer, CPA Canada, LG CNS, and South Korea’s Shinhan Bank, Lee mentioned.

LOVO’s four core markets are marketing, education, movies and games in entertainment and AR/VR, Lee said. The movie Spiral, the latest film of the Saw Series, features LOVO’s voice in the film, he noted.

It is expected that LOVO will create additional synergies in the entertainment industry in the wake of the latest funding from a South Korean entertainment.

VP of CEO Vision Office at Kakao Entertainment J.H. Ryu said, “I’m excited for LOVO’s synergies with Kakao Entertainment’s future endeavors in the entertainment vertical, especially with web novels and music,” Ryu also added, “AI technology is opening the doors to a new market for audio content, and we expect a future a where an individual’s voice will be utilized effectively as an intellectual property and as an asset.”

Founding Partner at SkyDeck Fund Chon Tang said, “Audio is uniquely engaging as a form of information but also difficult to produce, especially at scale. LOVO’s artificial intelligence-based synthesis platform has consistently out-performed other cloud-based solutions in quality and cost.”

LOVO is also preparing to penetrate further to international market, “We have a strong presence in the US, UK, Canada, Australia and New Zealand, and are getting signals from the rest of Europe, South America and Asia,” Lee said. LOVO has an office in South Korea and is looking to expand into Europe soon, Lee added.

Messenger celebrates its 10th anniversary with new features and a plan to become the ‘connective tissue’ for real-time experiences

By Amanda Silberling

To celebrate its ten year anniversary, Messenger today announced a handful of new features: poll games, word effects, contact sharing, and birthday gifting via Facebook Pay. But beyond the fun features, Facebook has been testing a way to add voice and video calls back into the Facebook app, rather than on Messenger.

“We are testing audio and video calls within the Facebook app messaging experience so people can make and receive calls regardless of which app they’re using,” a representative from Facebook told TechCrunch. “This will give people on Facebook easy ways to connect with their communities where they already are.”

Although earlier in Facebook history, the Messenger app had operated as a standalone experience, Facebook tells us that it’s now starting to see Messenger less as a separate entity — more of an underlying technology that can help to power many of the new experiences Facebook is now developing.

“We’ve been focused more on real-time experiences — Watch Together, Rooms, Live Audio Rooms — and we’ve started to think of Messenger as a connective tissue regardless of the surface,” a Facebook spokesperson told us.  “This is a test, but the bigger vision is for us to unlock content and communities that may not be accessible in Messenger, and that the Facebook app is going to become more about shared real-time experiences,” they added.

Given the company’s move in recent months to integrate its underlying communication infrastructure, it should come to reason that Facebook would ultimately add more touchpoints for accessing its new Messenger-powered features inside the desktop app, as well. When asked for comment on this point, the spokesperson said the company didn’t have any details to share at this time. However, they noted that the test is a part of Facebook’s broader vision to enable more real-time experiences across Facebook’s services.

Despite the new integrations, the standalone version of Messenger isn’t going away.

Facebook says that people who want a more “full-featured” messaging, audio and video calling experience” should continue to use Messenger.

Image Credits: Messenger

As for today’s crop of new features — including polls, word effects, contact sharing, and others — the goal is to  celebrate Messenger’s ability to keep people in touch with their family a friends.

To play the new poll games, users can tap “Polls” in their group chat and select the “Most Likely To” tab — then, they can choose from questions like “most likely to miss their flight?” or “most likely to give gifts on their own birthday?”, select names of chat participants to be included as potential answers, and send the poll.

Contact sharing will make it easier to share others’ Facebook contacts through Messenger, while birthday gifting lets users send birthday-themed payments on Messenger via Facebook Pay. There will also be other “birthday expression tools,” including a birthday song soundmoji, “Messenger is 10!” sticker pack, a new balloon background, a message effect, and AR effect to celebrate Messenger’s double-digit milestone.

Image Credits: Messenger

Meanwhile, word effects lets users manually input a phrase, and any time they send a message with that phrase, an accompanying emoji will float across the screen. In an example, Messenger showed the phrase “happy birthday” accompanied with a word effect of confetti emojis flooding the screen. (That one’s pretty tame, but this could be a remarkable application of the poop emoji.) The company only shared a “sneak peak” of this feature, as it’s not rolling out immediately.

In total, Facebook is announcing a total of ten features, most of which will begin rolling out today.

Messenger has come a long way over the past decade.

Ten years ago, Facebook acqui-hired a small group messaging start-up called Beluga, started by three former Google employees (apparently, a functional group thread was a white whale back then — simpler times). Several months later, the company unveiled Messenger, a standalone messaging app.

But three years into Messenger’s existence, it was no longer an optional add-on to the Facebook experience, but a mandatory download for anyone who wanted to keep up with their friends on the go. Facebook removed the option to send messages within its flagship app, directing users to use Messenger instead. Facebook’s reasoning behind this, the company told TechCrunch at the time, was that they wanted to eliminate the confusion of having two different mobile messaging systems. Just months earlier, Facebook had spent $19 billion to acquire WhatsApp and woo international users. Though removing Messenger from the Facebook app was controversial, the app reached 1.2 billion users three years later in 2017.

Today, Facebook has declared that it wants to evolve into a “metaverse” company, and on the same day as the anti-trust filing last week, Mark Zuckerberg unveiled a product that applies virtual reality in an impressively boring way: helping people attend work meetings. This metaverse would be enabled by technologies built by Facebook’s platform team, noted Vice President of Messenger Stan Chudnovsky. However, he added that people in the metaverse will still need platforms like Messenger.

“I don’t think messaging is going anywhere, even in the metaverse, because a asynchronous communication is going to continue to exist,” Chudnovsky said. People will still need to send messages to those who aren’t currently available to chat, he explained. Plus, Chudnovsky believes this sort of communication will become even more popular with the launch of the metaverse, as the technology will help to serve as a bridge between your phone, real life, and the metaverse.

“if anything is gonna happen more, not less. Because messaging is that things that just continues to grow with every new platform leap,” he said.

Additional reporting: Sarah Perez

You can now buy the $299 Oculus Quest 2 with 128GB of storage

By Darrell Etherington

Following its announcement late last month, Facebook’s new 128GB model of the Oculus Quest 2 is now available to buy. You can purchase the VR headset from the company’s website for the same $299 price as the previous 64GB base model. “Long story short? We’ve created this 128GB model so that players can easily store and access more games and apps on a single device,” Facebook says of the new variant.

Facebook announced the 128GB model at the same time it issued a voluntary recall of the Quest 2 to address an issue with the original face insert that came with the headset. The company temporarily stopped selling the Quest 2 for about a month so that it could add a new silicone face cover inside the box of each new unit. If you’re a current Quest 2 owner, you can request Facebook send you the new silicone cover by visiting the My Devices section of the account settings. The new 128GB model also comes with the silicone cover inside the box.

Editor’s note: This post originally appeared on Engadget.

TikTok is building its own AR development platform, TikTok Effect Studio

By Sarah Perez

Both Facebook and Snap offer tools that allow developers to build out augmented reality (AR) experiences and features for their own respective family of apps. Now, TikTok is looking to do the same. The company recently launched a new creative toolset called TikTok Effect Studio, currently in private beta testing, which will allow its own developer community to build AR effects for TikTok’s short-form video app.

On a new website titled “Effect House,” TikTok asks interested developers to sign up for early access to Effect Studio.

On the form provided, developers fill out their name, email, TikTok account info, company, and level of experience with building for AR, as well as examples of their work. The website also asks if they’re using a Mac or PC (presumably to gauge which desktop platform to prioritize), and whether they would test Effect House for work or for personal use.

The project was first spotted by social media consultant Matt Navarra, via a tip from Sam Schmir.

TikTok is launching an Effects Studio in beta

h/t @Sam_Schmir pic.twitter.com/K3LS5S2Yoq

— Matt Navarra (@MattNavarra) August 14, 2021

TikTok confirmed to TechCrunch the website launched earlier in August, but the project itself is still in the early stages of testing in only a few select markets, one of which is the U.S.

The company couldn’t offer a timeframe as to when these tools would become more broadly available. Instead, TikTok characterized Effect Studio as an early “experiment,” adding that some of its experiments don’t always make it to launch. Plus, other experiments may undergo significant changes between their early beta phases and what later becomes a public product.

That said, the launch of an AR toolset would make TikTok more competitive with industry rivals, who today rely on creative communities to expand their apps’ features sets with new features and experiences. Snap, for example, launched a $3.5 million fund last year directed toward Snapchat AR Lens creation. Meanwhile, at Facebook’s F8 developer conference in June, the company announced it had grown its Spark AR platform to over 600,000 creators across 190 countries, making it the largest mobile AR platform worldwide.

Image Credits: screenshot of TikTok website

TikTok, too, has been increasing its investment in developer tools over the past couple of years. However, its focus as of late has been on toolkits aimed at third-party developers who want to integrate more closely with TikTok in their own apps. Today, TikTok’s developer website provides access to tools that allow app makers to add TikTok features to their apps like user authentication flows, sound sharing, and others that allow users to publish videos from a third-party editing app out to TikTok.

The new TikTok Effect Studio isn’t meant to be used with third-party apps, however.

Instead, it’s about building AR experiences (and possibly, other creative effects), that would be provided to TikTok users directly in the consumer-facing video app.

Though willing to confirm its broader goals for TikTok Effect Studio, the company declined to share specific details about the exact tools may be included, citing the project’s early days.

“We’re always thinking about new ways to bring value to our community and enrich the TikTok experience,” a TikTok spokesperson told TechCrunch. “Currently, we’re experimenting with ways to give creators additional tools to bring their creative ideas to life for the TikTok community,” they added.

Facebook finally made a good virtual reality app

By Lucas Matney

Facebook’s journey toward making virtual reality a thing has been long and circuitous, but despite mixed success in finding a wide audience for VR, they have managed to build some very nice hardware along the way. What’s fairly ironic is that while Facebook has managed to succeed in finessing the hardware and operating system of its Oculus devices — things it had never done before — over the years it has struggled most with actually making a good app for VR.

The company has released a number of social VR apps over the years, and while each of them managed to do something right, none of them did anything quite well enough to stave off a shutdown. Setting aside the fact that most VR users don’t have a ton of other friends that also own VR headsets, the broadest issue plaguing these social apps was that they never really gave users a great reason to use them. While watching 360-videos or playing board games with friends were interesting gimmicks, it’s taken the company an awful lot of time to understand that a dedicated ”social” app doesn’t make much sense in VR and that users haven’t been looking for a standalone social app, so much as they’ve been looking for engaging experiences that were improved by social dynamics.

This all brings me to what Facebook showed me a demo of this week — a workplace app called Horizon Workrooms which is launching in open beta for Quest 2 users starting today.

The app seems to be geared towards providing work-from-home employees a virtual reality sphere to collaborate inside. Users can link their Mac or PC to Workrooms and livestream their desktop to the app while the Quest 2’s passthrough cameras allow users to type on their physical keyboard. Users can chat with one another as avatars and share photos and files or draw on a virtual whiteboard. It’s an app that would have made a more significant splash for the Quest 2 platform had it launched earlier in the pandemic, though it’s tackling an issue that still looms large among tech savvy offices — finding tech solutions to aid meaningful collaboration in a remote environment.

Horizon Workrooms isn’t a social app per se but the way it approaches social communication in VR is more thoughtful than any other first-party social VR app that Facebook has shipped. The spatial elements are less overt and gimmicky than most VR apps and simply add to an already great functional experience that, at times, felt more productive and engaging than a normal video call.

It all plays into CEO Mark Zuckerberg’s recent proclamation that Facebook is transitioning into becoming a “metaverse company.”

Now, what’s the metaverse? In Zuckerberg’s own words, “It’s a virtual environment where you can be present with people in digital spaces. You can kind of think of this as an embodied internet that you’re inside of rather than just looking at.” This certainly sounds like a fairly significant recalibration for Facebook, which has generally approached AR/VR as a wholly separate entity from its suite of mobile apps. Desktop users and VR users have been effectively siloed from each other over the years.

Generally, Facebook has been scaling Oculus like they’re building the next smartphone, building its headsets with a native app paradigm at their core. Meanwhile, Zuckerberg’s future-minded “metaverse” sounds much more like what Roblox has been building towards than anything Facebook has actually shipped. Horizon Workrooms is living under the Horizon brand which seems to be where Facebook’s future metaverse play is rooted. The VR social platform is interestingly still in closed beta after being announced nearly two years ago. If Facebook can ever see Horizon’s vision to fruition, it could grow to become a Roblox-like hub of user-created games, activities and groups that replaces the native app mobile dynamics with a more fluid social experience.

The polish of Workrooms is certainly a promising sign of where Facebook could be moving.

Pokémon GO influencers threaten a boycott after Niantic removes COVID safety measures

By Amanda Silberling

The creators of Pokémon GO, Niantic developed one of the first mainstream augmented reality games, boasting 166 million users and over a billion dollars in revenue last year. Taking inspiration from the main series Pokémon games, Pokémon GO uses in-game incentives to encourage users to explore their surroundings, team up with other users to fight legendary beasts, and travel to places they’ve never been before.

Before the pandemic, this posed an accessibility issue — when certain tasks could only be completed by walking a certain distance, for example, it alienated users with physical conditions and disabilities that prevent them from easily taking a walk around the neighborhood. Plus, for players in wheelchairs, it might be impossible to access certain PokéStops and Gyms. It’s necessary to interact with these real-world landmarks to play the game to its fullest.

When much of the world entered lockdown March 2020, Pokémon Go doubled the size of the radius that players can be within to interact with a PokéStop or Gym, widening the radius from 40 meters to 80 meters. So, you could now be further away from a landmark but still reap its rewards. This made it easier for users to play from home, or play outside while social distancing — but it also made the game much more accessible. Plus, for a game that still gets a bad rep for causing traffic accidents, the increased radius helped pedestrian players access landmarks without brazenly jay-walking across the street (to be fair, it’s on users to make smart decisions while gaming in augmented reality — but, Niantic has responsibility here too). And for businesses that happened to be located in a prime location for raid battles, which require players to gather in-person within a Gym’s radius to defeat rare monsters, this meant that Pokémon players could maintain a respectful distance from store fronts while playing the game (later in the pandemic, it became possible to join raid battles remotely — this feature will remain in the game, probably because it proved profitable).

These pandemic incentives were always framed as temporary bonuses, but players embraced the changes — in 2020, Pokémon GO had its highest-earning year yet. Now, the increased landmark radius has been removed “as a test” in the U.S. and New Zealand.

“As we return to the outside world again, these changes are aimed at restoring the focus of Pokémon GO on movement and exploration in the real world,” the company wrote in a blog post. “These changes will be introduced slowly and carefully to make it more exciting to explore the world around you.”

One new incentive gives users 10x XP for visiting a new PokéStop for the first time (or, in real-world terms, visiting a new place). But as the Delta variant spreads in the U.S., players find these changes to be frustrating and misguided. Why roll back features that made the game more accessible while also netting the company more money?

The removal of double distance is nothing short of a slap in the face towards the #PokemonGO Community.

I’ll realistic and say I that I’ll quit GO if changes aren’t being made ASAP.

I REFUSE to cover a game that doesn’t have it’s player base in its best interest.

— REVERSAL – Pokémon GO (@REVERSALxPoGO) August 1, 2021

The Pokémon Go YouTuber, Reversal, who has created sponsored content for Niantic, wrote that he will quit the game if changes aren’t being made ASAP. Other players launched a petition with over 130,000 signatures to keep increased PokéStop and Gym interaction distance. Prominent Pokémon Go content creators like ZoëTwoDots and The Trainer Club have referenced a potential boycott of the game in videos they uploaded today, citing Niantic’s refusal to listen to community concerns after they announced the impending end of pandemic bonuses in June.

“I’m more than down to boycott the game with everyone if we’re vibing that,” ZoëTwoDots, who has also partnered with Niantic, told her 212,000 subscribers. “I know for myself personally, I’m just straight up not spending money in the game going forward until they address it publicly.”

My opinion on the Pokéstop radius hasn't changed. It was a clear quality of life change that was only fully realised because of a (ongoing) pandemic. It has provided accessibility to disabled players, safety to all players, and NEVER affected our enjoyment of exploration. https://t.co/DK1VWkw0ga

— ZoëTwoDots 🎀 (@_ZoeTwoDots) August 1, 2021

As the game celebrates its five year anniversary, the conflict it now faces isn’t about players wishing for the game to be easier. Rather, this represents a failure by Niantic to listen to its user base, prioritize accessibility, and incentivize users to stay home as COVID-19 cases rise again in the U.S.

Zuckerberg is turning trillion-dollar Facebook into a ‘metaverse’ company, he tells investors

By Lucas Matney

Can advertising scale in VR?

By Annie Siebert
Michael Boland Contributor
Mike Boland is chief analyst of ARtillery Intelligence, an AR/VR research firm.
More posts by this contributor

One of VR’s prospective revenue streams is ad placement. The thought is that its levels of immersion can engender high engagement with various flavors of display ads. Think billboards in a virtual streetscape or sporting venue. Art imitates life, and all that.

This topic reemerged recently in the wake of Facebook’s experimental ads in Blaston VR. As TechCrunch’s Lucas Matney observed, it didn’t go too well. The move triggered a resounding backlash, followed by the game publisher, Resolution Games, backing out of the trial.

This chain of events underscored Facebook’s headwinds in VR ad monetization, which stem from its broader ad issues. In fairness, this was an experimental move to test the VR advertising waters … which Facebook accomplished, though it didn’t get the result it wanted.

VR advertising is a bit of a double-edged sword. It could take several years for VR usage to reach requisite levels for meaningful ad monetization.

Regardless, we’ve taken this opportunity to revisit our ongoing analysis and market sizing of VR advertising in general. The short version: There are pros and cons on both qualitative and quantitative levels.

The pros of VR advertising

VR advertising’s opportunity goes back to factors noted above: potentially high ad engagement given inherent levels of immersion. On that measure, VR exceeds all other media, which can mean higher-quality impressions, brand recall and other common display-ad metrics.

Historical evidence also suggests that VR could follow a path toward ad monetization. VR shows similar patterns to media that were increasingly ad supported as they matured. These include video, social media, mobile apps and games (just ask Unity).

To put some numbers behind that, 75% of apps in the Apple App Store’s first year were paid apps — similar to VR today. That figure declined to 15% in 2014 and hovers around 10% today. Over time, developers learned they could reach scale through free downloads.

Prevalent revenue models today include in-app purchases — especially in mobile gaming — and advertising. The question is whether VR will follow a similar path as developers learn that they can reach scale faster through free apps that employ “back-end monetization” like ad support.

This trend also follows audience dynamics: Early adopters are more likely to pay for content and experiences. But as a given technology or media matures, its transition to mainstream audiences requires different business models with less upfront commitment and friction.

“Today, there are only about 18% of applications in VR stores such as Steam and Oculus that are free,” Admix CEO Samuel Huber said. “This is fine for now because we are still very early in the market and most of these users are early adopters. They are willing to pay for content, just like they were willing to pay for prototype unproven hardware and generally, they have higher purchasing power than the average person.”

Drawbacks of VR advertising

Considering the above advantages, VR advertising is a bit of a double-edged sword (or beat saber). Those advantages are counterbalanced by a few practical disadvantages in the medium’s early stage. Much of this comes down to the requirement for scale.

Psychedelic VR meditation startup Tripp raises $11 million Series A

By Lucas Matney

As an increasing number of startups sell investors on mobile apps that help consumers prioritize well-being and mindfulness, other startups are looking for a more immersive take that allow users to fully disconnect from the world around them.

Tripp has been building immersive relaxation exercises that seek to blend some of the experiences users may find in guided meditation apps with more free-form experiences that allow users to unplug from their day and explore their thoughts inside a virtual reality headset while watching fractal shapes, glowing trees and planets whir past them. As the name implies, there have been some efforts by the startup to create visuals and audio experiences that mimic the feelings people may have during a psychedelic trip — though doing so sans hallucinogens.

“Many people that will never feel comfortable taking a psychedelic, this is a low friction alternative that can deliver some of that experience in a more benign way,” CEO Nanea Reeves tells TechCrunch. “The idea is to take mindfulness structures and video game mechanics together to see if we can actually hack the way that you feel.”

The startup tells TechCrunch they’ve closed a $11 Million in funding led by Vine Ventures and Mayfield with participation from Integrated, among others. Tripp has raised some $15 million in total funding to date.

Image via Tripp

VR startups have largely struggled to earn investor fervor in recent years as major tech platforms have sunsetted their virtual reality efforts one-by-one leaving Facebook and Sony as the sole benefactors of a space that they are still struggling to monetize at times. While plenty of VR startups are continuing to see engagement, many investors which backed companies in the space five years ago have turned their attention to gaming and computer vision startups with more broad applications.

Reeves says that the pandemic has helped consumers dial into the importance of mindfulness and mental health awareness, something that has also pushed investors to get bolder in what projects in the space that they’re backing.

Tripp has apps on both the Oculus and PlayStation VR stores and subscription experiences that can be accessed for a $4.99 per month subscription.

The company provides a variety of guided experiences, but users can also use the company’s “Tripp composer” to build their own visual flows. Beyond customization, one of Tripp’s major sells is giving consumers deeper, quicker meditative experiences, claiming that users can get alleviate stress with sessions as short as 8 minutes inside their headset. Tripp is currently in the midst of clinical trials to study the software platform’s effectiveness as a therapeutic device.

The company says that users have gone through over 2 million sessions inside the app so far.

Facebook’s entry into VR advertising isn’t going too well

By Lucas Matney

Facebook’s efforts to bring advertising to the Oculus virtual reality platform it has spent billions of dollars building out doesn’t seem to be off to a great start.

The company announced last week that they were planning to roll out their first in-game ads inside the title “Blaston” from the prolific VR game developer Resolution Games, and just days later the game studio has shared that after hearing an earful from users they’ve decided to abandon the ad rollout.

“After listening to player feedback, we realize that Blaston isn’t the best fit for this type of advertising test,” a tweet from the Blaston account read. “Therefore, we no longer plan to implement the test. We look forward to seeing you in the arena and hope you try the Crackdown Update that went live today!”

This potential ad rollout had been particularly noteworthy because the ads were being tested inside a title from a third-party developer. Facebook has purchased a handful of VR studios in recent months and owns a number of the most popular Quest titles inside its marketplace, so the opportunity to roll out advertising with a third-party partner gave Facebook a chance to frame the advertising rollout as a way for other developers to open up their monetization channels, rather than for Facebook to do so.

The announcement last week still brought out plenty of critics in the VR community who weren’t thrilled about Facebook’s broader struggles with balancing advertising efforts with user privacy, but other users seemed to be more annoyed by the prospect of ads being rolled out inside a paid title they had already purchased. Blaston retails for $9.99 in the Oculus store.

Update: Resolution Games reached out to TechCrunch with a statement, floating the possibility of further ad tests down the road inside one of the developer’s free apps. “To make it clear, we realize that Blaston isn’t the best fit for this type of advertising test. As an alternative, we are looking to see if it is feasible to move this small, temporary test to our free game, Bait! sometime in the future.”

Resolution Games abandoning the test before it even started is an early setback for Facebook’s VR advertising efforts that showcases just how skeptical the Oculus platform’s most vocal users still are of Facebook. In a blog post last week, Facebook sought to address early concerns with what user data would be used to serve up advertising in VR, specifically noting that conversations recorded by the headset’s microphone and images analyzed by the onboard tracking cameras would not be used.

Facebook saw considerable backlash last year from virtual reality fans when they shared that new headset owners would need a Facebook account in order to activate their devices. While criticism poured in following the announcement, the recently released $299 Quest 2 headset has already outsold all of Facebook’s previous VR devices combined, the company has said.

We’ve reached out to Facebook for comment.

 

Facebook will begin beaming advertisements into virtual reality

By Lucas Matney

Well, it was only a matter of time.

Advertising giant Facebook announced Wednesday that they’re going to begin testing advertising inside virtual reality titles on its Oculus platform soon. The first roll-out is limited enough, with Facebook testing ads inside a single gaming shooter title: Blaston from Resolution Games. They are interestingly not rolling this out with a first-party title, though I’m sure integration with Oculus Studio titles is inevitable.

“For now, this is a test with a few apps — once we see how this test goes and incorporate feedback from developers and the community, we’ll provide more details on when ads may become more broadly available across the Oculus Platform and in the Oculus mobile app,” a company blog post reads.

Users will be able to mute, hide or see information on why they are being served an ad in its current form.

It’s an unsurprising development for a platform that Facebook has long been bankrolling with little regard for current revenues. Nevertheless, Facebook likely realizes that there are going to be plenty of privacy questions and addressed some of them head-on. The biggest admission is that Facebook says it will not be using any data stored locally on the Oculus headset, including images from the device’s cameras to target ads. It also says, somewhat less emphatically, that there are “no plans to use movement data to target ads.”

Facebook is likely realizing that it probably should’ve published a blog post years ago declaring that it was indeed not using smartphone microphones to monitor conversations and target ads (mainly because it has access to better personal information via adtech data partners anyway, but I digress) before those narratives took off. Facebook specifically notes it doesn’t use audio conversations on the headset for ad targeting.

Virtual reality has been a labor of future-minded thinking for Facebook. Since the beginning, it has spent billions bankrolling the ecosystem and this move seems to signal that it believes its wandered over some sort of adoption hump and are nearing the time to start more aggressively monetizing.

Apple’s RealityKit 2 allows developers to create 3D models for AR using iPhone photos

By Sarah Perez

At its Worldwide Developer Conference, Apple announced a significant update to RealityKit, its suite of technologies that allow developers to get started building AR (augmented reality) experiences. With the launch of RealityKit 2, Apple says developers will have more visual, audio, and animation control when working on their AR experiences. But the most notable part of the update is how Apple’s new Object Capture technology will allow developers to create 3D models in minutes using only an iPhone.

Apple noted during its developer address that one of the most difficult parts of making great AR apps was the process of creating 3D models. These could take hours and thousands of dollars.

With Apple’s new tools, developers will be able take a series of pictures using just an iPhone (or iPad or DSLR, if they prefer) to capture 2D images of an object from all angles, including the bottom.

Then, using the Object Capture API on macOS Monterey, it only takes a few lines of code to generate the 3D model, Apple explained.

Image Credits: Apple

To begin, developers would start a new photogrammetry session in RealityKit that points to the folder where they’ve captured the images. Then, they would call the process function to generate the 3D model at the desired level of detail. Object Capture allows developers to generate the USDZ files optimized for AR Quick Look — the system that lets developers add virtual, 3D objects in apps or websites on iPhone and iPad. The 3D models can also be added to AR scenes in Reality Composer in Xcode.

Apple said developers like Wayfair, Etsy and others are using Object Capture to create 3D models of real-world objects — an indication that online shopping is about to get a big AR upgrade.

Wayfair, for example, is using Object Capture to develop tools for their manufacturers so they can create a virtual representation of their merchandise. This will allow Wayfair customers to be able to preview more products in AR than they could today.

Image Credits: Apple (screenshot of Wayfair tool))

In addition, Apple noted developers including Maxon and Unity are using Object Capture for creating 3D content within 3D content creation apps, such as Cinema 4D and Unity MARS.

Other updates in RealityKit 2 include custom shaders that give developers more control over the rendering pipeline to fine tune the look and feel of AR objects; dynamic loading for assets; the ability to build your own Entity Component System to organize the assets in your AR scene; and the ability to create player-controlled characters so users can jump, scale and explore AR worlds in RealityKit-based games.

One developer, Mikko Haapoja of Shopify, has been trying out the new technology (see below) and shared some real-world tests where he shot objects using an iPhone 12 Max via Twitter.

Developers who want to test it for themselves can leverage Apple’s sample app and install Monterey on their Mac to try it out.

Apple says there are over 14,000 ARKit apps on the App Store today, which have been built by over 9,000 different developers. With the over 1 billion AR-enabled iPhones and iPads being used globally, it notes that Apple offers the world’s largest AR platform.

Apple's Object Capture on a Pineapple. One of my fav things to test Photogrammetry against. This was processed using the RAW detail setting.

More info in thread 👇pic.twitter.com/2mICzbV8yY

— Mikko Haapoja (@MikkoH) June 8, 2021

Apple's Object Capture is the real deal. I'm impressed. Excited to see where @Shopify merchants could take this

Allbirds Tree Dashers. More details in thread 👇pic.twitter.com/fNKORtdtdB

— Mikko Haapoja (@MikkoH) June 8, 2021

read more about Apple's WWDC 2021 on TechCrunch

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