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Sandbox VR has reached a substantial milestone, crossing the $200 million mark in lifetime revenue from its location-based virtual reality entertainment venues.
This achievement follows a robust year in 2024, during which Sandbox VR amassed $75 million in sales, attracting over 1.4 million players to its venues. In just March 2025, the company’s locations welcomed more than 150,000 players, and CEO Steve Zhao anticipates that this number will continue to rise as more stores are opened, as he shared in a conversation with GamesBeat.
“Achieving $200 million in total sales is a major milestone for Sandbox VR and affirms our commitment to providing immersive, social VR experiences that unite people,” Zhao remarked. He added that the growing global demand, facilitated by their franchise model, underscores the unique appeal of their offerings to both operators and consumers.
My personal experience at Sandbox VR includes several engaging sessions, notably playing Deadwood Valley—a zombie-themed team shooter—recently featured at the Game Developers Conference in San Francisco. This experience utilizes a combination of body sensors and HTC’s advanced VR headset specifically designed for location-based environments, ensuring an immersive gameplay experience.
Accelerating Growth through Franchise Expansion
Deadwood Valley continues to be a standout experience for Sandbox VR.
Since early 2024, Sandbox VR has successfully sold 83 franchise units with 21 operators, contributing to a total of nearly 150 locations now in development affiliated with 34 operators. This reflects a sixfold increase in franchise agreements signed over the past year. The company projects a significant expansion of over 50% in its footprint within this year alone, with plans to inaugurate 29 new locations.
This month marks the opening of the 60th global Sandbox VR venue, in partnership with LOL Entertainment, located in Philadelphia. Additionally, a deal was finalized with JLG Ventures in March to introduce Sandbox VR venues in Manhattan and Brooklyn.
Aylang Lou, Sandbox VR’s senior vice president of stores, stated, “The swift growth of our franchise program is a testament to our business model’s effectiveness and the strong appetite for premium VR experiences.” He emphasized that franchise partners clearly see the unique strengths of Sandbox VR, from its cutting-edge technology to its exclusive content and proven operational success.
Zhao noted, “Now that we have a solid base of stores validating the market, we have significantly intensified our franchising efforts. The more stores we establish, the more resources we can allocate toward content development, leading to an increased frequency of game launches.”
This increased output could allow Sandbox VR to collaborate with more partners, including major players like Netflix, according to Zhao.
“As we scale, there may come a time when we can open up our platform for publishing opportunities,” he said, expressing a vision for Sandbox VR to be a distinct platform in the VR realm, partnering with various developers.
Transitioning to a franchise model allows Sandbox VR to minimize capital expenditures and focus its resources more on game development.
“While we capture a smaller share of revenue with franchises, the royalties we earn are substantial, and the opportunity for rapid location expansion is significant,” Zhao explained.
Consumer Engagement Driving Revenue
The collaboration between Netflix and Sandbox VR has led to the creation of Squid Game Virtuals.
Interest in Sandbox VR’s experiences remains high, with an average of 117,000 players engaging with its offerings each month in 2024. In 2025, the company estimates this figure will increase to 150,000 monthly players worldwide, showcasing the compelling nature of Sandbox VR’s unique entertainment options.
Sandbox VR aims to redefine the entertainment landscape by delivering cutting-edge immersive experiences through advanced virtual reality technology. Its patented motion-tracking system, which captures players’ full-body movements, along with a sophisticated haptic system, creates an unparalleled level of realism and immersion, distinguishing it from home VR equipment and other venue-based VR options.
Sandbox VR’s platform seamlessly integrates sophisticated technology with user-friendly mechanics, allowing players to step into a virtual environment where their bodies function as game controllers, engaging them in the unfolding action.
Experiences are crafted by renowned in-house game studios based in Hong Kong and Vancouver, staffed by industry veterans dedicated to producing group-oriented gameplay that emphasizes social interaction. Teams of up to six players can explore virtual realms and collaborate towards common objectives.
Zhao mentioned that Millennials and Gen Z are among the most frequent visitors, with an increasing number of attendees under 25 years old, now making up approximately 40% of the total audience.
Historically, Sandbox VR onboarded one franchise operator per quarter, but starting from Q3 of 2024, this pace accelerated to about seven operator agreements per quarter.
Sandbox VR’s Squid Game Virtuals experience allows players to engage in a virtual version of “red light, green light.”
“We have experienced remarkable momentum, with some operators opting to start multiple units, thereby compounding our expansion efforts,” Zhao noted.
Generally, it takes around nine months to establish a new franchise once the contract is signed; however, subsequent locations can be developed at an accelerated pace.
Sandbox VR currently employs approximately 130 staff members; this count does not include personnel at franchise venues or other owned locations.
Looking ahead, Zhao indicated that the company is considering diversifying its offerings beyond gaming, working on a cultural learning experience that will be unveiled in the future.
As Sandbox VR continues its pursuit of full-body VR experiences, Zhao expressed optimism about attracting increasingly larger audiences. Improved experiences are expected to resonate across a wider demographic spectrum.
The current growth trajectory is somewhat atypical. During the recent Game Developers Conference, many developers expressed challenges in the VR space, particularly in creating home-based games. Nevertheless, Zhao is confident that Sandbox VR can grow sustainably as it opens more locations.
“People crave the Holodeck experience, which isn’t feasible in a home setting due to the requirement for various technologies to make it work. Our strategy has been to establish a presence outside of home settings, effectively flipping the arcade model,” Zhao concluded.
Source
venturebeat.com