TL;DR
SideQuest has acquired the rights to AltspaceVR, Microsoft’s social VR platform, and plans to relaunch it as a modern, community-focused experience. The move aims to revive a pioneering social VR space for a new generation of users.
SideQuest, the team behind Quest’s alternative app library, has announced it has acquired the rights to Microsoft’s social VR platform AltspaceVR and plans to relaunch it as a modern, community-oriented platform. This move marks a significant effort to revive a pioneering social VR space that was shut down earlier this year, aiming to re-engage both former users and new audiences.
In early 2023, Microsoft announced it was closing AltspaceVR to focus resources on its cloud-based mixed reality collaboration platform, Microsoft Mesh, which was later deprecated in 2025. Now, SideQuest CEO Shane Harris revealed in a Reddit post that the company has acquired the rights to the AltspaceVR name and will develop a new version of the platform. Harris stated that this relaunch will be a ‘spiritual successor’ to the original Altspace, featuring many of the same functionalities from 2016-2017, including social events, avatars, and community spaces.
Harris also confirmed the involvement of former Altspace staff, including Christian Boe, the original concept designer of the robot avatars, indicating that the new Altspace will incorporate both custom avatars and robot-like features. The team aims to attract both OG users and a new generation of VR enthusiasts, emphasizing community-building and event hosting. The relaunch will include regular updates and insights from the development team, although specific features and monetization strategies remain to be detailed.
This development is significant because it signals a renewed interest in social VR platforms that prioritize community and social interaction. The revival of AltspaceVR, a platform that once played a key role in early social VR adoption, could influence the future of social VR spaces by demonstrating a model that balances nostalgia with modern features. It also reflects the ongoing competition among VR platforms to attract users seeking social experiences beyond gaming, especially as VR hardware becomes more accessible and mainstream adoption grows.
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Background of AltspaceVR and Its Closure
AltspaceVR was launched in 2015 and quickly became one of the first successful social VR platforms, supporting various headsets including PC VR, Samsung Gear VR, Oculus Go, Quest, and Quest 2. It was acquired by Microsoft in 2017, which integrated it into its mixed reality ecosystem. Despite its early success, AltspaceVR struggled to monetize effectively during its eight-year run, lacking an in-world economy or creator marketplace. In early 2023, Microsoft announced its shutdown to reallocate resources to Microsoft Mesh, which was later deprecated in 2025, leaving the platform dormant.
The platform’s decline was also tied to changing user engagement and competition from other social VR spaces like VRChat and Rec Room, which offered more customization and monetization options. The recent acquisition by SideQuest aims to revive the platform with a focus on community and event hosting, leveraging the original team’s expertise.
“We’re bringing Altspace back to life as a modern platform that captures what made it great, with new features and a fresh community focus.”
— Shane Harris, SideQuest CEO
Unclear Details on Features and Monetization
While the relaunch plans are promising, specific details about new features, avatar customization options, and monetization strategies remain unconfirmed. It is not yet clear how SideQuest will attract and retain users in a competitive social VR landscape or how they will address past challenges related to platform sustainability.
Upcoming Development Updates and Community Engagement
SideQuest has promised to share regular updates and developer insights over the coming weeks and months. The focus will likely be on finalizing the platform’s features, re-engaging former users, and attracting new audiences through community events and social activities. The next milestones include beta testing phases and official launch announcements.
Key Questions
When will the new AltspaceVR be available?
Specific release dates have not yet been announced. SideQuest plans to provide updates and beta access details in the coming months.
Will the relaunch support existing VR headsets?
Yes, the original AltspaceVR supported multiple headsets, and the relaunch aims to be compatible with the same platforms, including Quest and PC VR.
How will the new AltspaceVR differ from the original?
While it aims to preserve core features, the new Altspace will incorporate modern updates, new avatars, and a focus on community-driven events, with input from original staff members.
Is this revival officially endorsed by Microsoft?
No, Microsoft has not publicly endorsed the revival; the rights were acquired by SideQuest, which is developing the platform independently.
What challenges might the relaunch face?
Key challenges include attracting users in a competitive market, establishing a sustainable economic model, and re-engaging former AltspaceVR users while attracting newcomers.
Source: Road to VR
