HOLOGATE's Journey from VR Games to Military Trainings

In this issue we explore with HOLOGATE ’s CEO Leif Arne Petersen how they went from becoming a world leader in the LBE VR space to deploying advanced training simulation for the German army. We look at what it takes to build successful entertainment experiences for location owners to the complexities of dealing with governmental organizations and pivoting the direction of the company. If you are into this topic stay until the end because I will share a comprehensive list of 100+ VR trainings I compiled personally.

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Interview with Leif Petersen

What inspired you to focus on LBE VR instead of just creating content for consumer VR headsets?

Leif Petersen: It goes back to the '90s for me. I remember seeing VR in arcades, and location-based entertainment was a big deal back then. When VR headsets started making a comeback around 2015, they were still expensive and there wasn’t a large consumer market for them. I thought, before trying to sell headsets to individual consumers, why not focus on creating shared experiences in public spaces, where more people could access it?

What were some of the major technical challenges you faced when launching your first location-based VR experiences?

Leif Petersen: Early on, there were a lot of technical hurdles. We had to figure out stable systems, from using lighthouse trackers to dealing with cables. Getting the games to run without crashing was another big challenge. But a lot of the learning came from observing how users interacted with the games. We needed to make things intuitive and figure out the right length for each game. It was a lot of trial and error at first to balance technical stability with user enjoyment.

How did you determine the ideal length for a VR game in a location-based environment?

Leif Petersen: Initially, our games were around 10 minutes long, but we realized that people didn’t really notice the difference between five and ten minutes. So, we experimented with reducing the game time. In the end, five minutes seemed to be the sweet spot. From the user’s perspective, they still felt fully immersed and satisfied. For operators, shorter game times meant higher throughput and more potential revenue. So, five minutes gave us that balance between a great experience and operational efficiency.

What types of games tend to perform best in location-based VR settings?

Leif Petersen: We've seen two major types of games work well. First, skill-based games, where players earn points by interacting with their environment or competing against others. Interestingly, cooperative games, where you work together, tend to attract larger audiences compared to competitive ones. People, especially families, often prefer to play together rather than against each other. The second type is story-driven experiences. While these are less replayable, they offer a memorable journey, like fighting the Stay Puft Marshmallow Man in our Ghostbusters game.

What are the keys to creating a memorable five-minute VR experience for users?

Leif Petersen: You need to strike a balance between gameplay and story. Skill-based games keep people engaged because they can improve and compete for points. But if you want to leave a lasting impression, a story element is crucial. Even a small narrative beat, like facing a final boss, adds excitement. However, story elements can limit replayability, so it’s about blending just enough story with gameplay that encourages users to return.

How do you manage the operational side of location-based VR for arcade operators?

Leif Petersen: First and foremost, the system has to be reliable. If a game crashes or malfunctions, it ruins the experience for users and can result in bad reviews for the operator. Ease of use is also critical since many operators hire temporary staff, who might not be tech-savvy. Everything needs to be simple and intuitive, from turning on the system to running the games. We've also learned that arcade-style experiences, where users can just swipe their card and play without much supervision, work really well for both users and operators.

What were some specific features or mechanics that didn’t work in a location-based VR setting?

Leif Petersen: Over time, we discovered that anything more than one button is too complicated for most players. In VR, people often don’t follow instructions well—they’re too immersed in the environment to pay attention to prompts or signs. Reload mechanics, for example, turned out to be more of a hindrance than a cool feature. In the end, we simplified everything to just pulling the trigger and shooting. It’s all about making the experience as intuitive as possible.

Have you started using generative AI in your game development or design process?

Leif Petersen: Yes, we’ve been experimenting with generative AI for tasks like creating textures and promotional images. AI is progressing so fast that it’s becoming a valuable tool for us. For example, I recently needed a specific image for marketing, and instead of hiring a photographer, I just used MidJourney to generate it. That being said, we still rely heavily on manual work for things like 3D models and optimizing assets for VR. But AI is already starting to make some processes faster and easier.

How do you see generative AI impacting the future of the creative industry, especially in VR?

Leif Petersen: I think it’s going to disrupt the industry massively. We’re already seeing AI create realistic images and even videos that would have taken weeks or months to produce just a few years ago. The next step will be AI-generated 3D content. It’s not quite there yet, but it’s coming fast. It’s both exciting and a bit scary for artists because the technology is evolving so quickly. But it’s inevitable, and we’re embracing it as just another tool to push the boundaries of what we can create.

What led you to start working on training simulations for police and military organizations?

Leif Petersen: It was always part of our plan. Back in 2017, when my CTO and COO joined, we saw that entertainment was where we should start, but we knew that VR would eventually be useful for military, police, and security. Initially, the tech wasn’t quite ready, but we began working with the German Army in 2020. It’s a natural evolution, and as the technology improved, it made more sense to expand into this space. The idea was always to provide training solutions that go beyond just entertainment.

What were some of the technical challenges you faced when building VR training simulations for the military?

Leif Petersen: In the early days, the tech was super finicky. We used VR backpacks to power the headsets, which were heavy and clunky. We also had to deal with full-body tracking, which required multiple trackers and expensive optical tracking systems. If you wanted to track large spaces, you needed hundreds of thousands of euros worth of equipment. But things have improved. Now we can stream graphics directly to the headsets, which has made everything smoother and more cost-effective.

How do you measure the success of VR training simulations for police and military?

Leif Petersen: It’s a long process, but we run studies with our clients, like the German Army, to gather data on the effectiveness of the training. We get feedback from trainees, asking how the simulations improve their decision-making, readiness, and overall training outcomes. One thing that stood out was that 100% of the trainees in our studies said they wanted systems like this to be part of their training. It’s not just about the cool factor—it’s about showing real results in improving their skills.

Where can people find more information about your training simulations and research?

Leif Petersen: We’ve shared some of the results from our studies on our website. You can visit HGXR🔗, which is our brand dedicated to simulation and training. We have also published a more comprehensive white paper with findings🔗 from our work with the German Army.

How do you maintain balance between the entertainment and training sides of your business?

Leif Petersen: Right now, we’re heavily focused on the training and simulation side because the demand is huge, especially from military and police clients. But we still love the entertainment side, and we’re committed to developing new games and experiences for location-based VR. We’re trying to strike a healthy balance between both, but there’s definitely more pressure right now on delivering training systems. The goal is to keep innovating in both areas without one overshadowing the other.

Check out the full interview right here 👇

Product Spotlight: List VR Trainings

This is a list I compiled with a wide variety of VR trainings available on Quest or Steam. Especially if you are into training and education I think it is an absolute gold mine to help you evaluate how other studio have been approaching the design and development of application that put learning and functionality as their top priority.

That’s it for today, and don’t forget to subscribe to the newsletter if you find this interesting

See you next week