My #1 Spatial Computing IPO

1 SPECIAL REPORTA Brownstone Research PublicationMy #1 Spatial Computing IPOBy Jeff Brown2 The Near Future ReportMy #1 Spatial Computing IPOBy Jeff Brown, Editor, The Near Future ReportAugmented reality (AR) technology will change the way we and much, much more. This is the technology that will one day make our smartphones obsolete. Yet most people don t yet realize the impact that AR will which means, as investors, we are in a prime position to profit. I ve shared with readers exactly how to take advantage of this coming trend right now in another report: The #1 Stock for the $ Trillion Spatial Computing Revolution, which I recommend checking out right here. But there s another private company on my radar that is a pioneer in the AR space. It s making incredible progress, and one day soon, I believe it could make an incredible addition to our portfolio. In fact, when this company goes public, it could be the hottest IPO of this decade.

2 Augmented Reality Is Heating UpNiantic has been one of the leaders at the forefront in developing augmented reality (AR) technology. The company has created several AR-based games capable of running on modern the sake of new readers, AR is a technology that overlays video, images, and data on top of the user s actual surroundings. This can be done in a pair of glasses, windows, or smartphones and tablets. It overlays computer graphics on top of our real most successful application of AR in the world to date is Pok mon Go, one of the games Niantic created in 2016. In a rolling 24-hour launch around the world, Pok mon Go was installed million times. And it immediately became the highest revenue-generating application in app stores. Pok mon Go has generated more than $5 billion for Niantic since launching in July object of the game is for players to find virtual creatures called Pok mon in their surroundings using their smartphone camera.

3 When found, these creatures are displayed on the player s smartphone within the context of his or her natural surroundings. This makes for an immersive Pok mon Go hasn t been Niantic s only successful game. In 2019, Niantic released Harry Potter: Wizards Unite, based on the famed Harry Potter series. Wizards Unite generated over $12 million within a month of being released. And it rocketed to the top of app stores. That reveals that AR gaming is an extraordinary Report20213 The Near Future ReportAnd Niantic is determined to stay at the front of the field. In early 2021, Niantic made Pok mon Go even Taking advantage of modern 3D-sensing technology in smartphones, Niantic has vastly improved the depth perception within Pok mon Go. Here s a visual:Pok mon Demonstrating Depth PerceptionSource: NianticOn the left is what the game looked like before. When the game launched in 2016, smartphones had limited depth perception, so the augmentation was rather virtual creature is overlaid on top of a tree.

4 On the right, we see the power of 3D-sensing tech. It looks like the Pok mon is peeking out from behind the tree. The ability to do this is called occlusion. Game designers can essentially hide, or occlude, objects behind other this kind of realism, we can see why so many players have enjoyed this gaming experience. And as smartphones improve their capabilities, we will continue to see Niantic advance its own Mapping the World in 3 DNow that newer smartphones have advanced 3D-sensing technology and in the case of the new iPhone, light detection and ranging (LIDAR) technology Pok mon Go s augmentation has become quite can see how advanced 3D-sensing technology makes the augmentation more realistic. And it turns out that Niantic has an even bigger vision for how to leverage this In 2020, Niantic acquired a company called This is a company developing technology for creating a 3D mesh of the real Niantic acquired another early stage company called Scaniverse this past August.

5 This company developed a mobile app that takes 3D scans of the real world using the LIDAR sensors employed in the new plans to combine the technology from these two acquisitions and integrate it into its library of AR games. In doing so, Niantic will be able to compile a very accurate 3D map of the world simply by capturing the 3D images produced by the people playing its other words, as players walk around their towns with their smartphones looking for creatures, Niantic will take the images produced and use them to create a 3D map of the world all at no is a brilliant move. A comprehensive 3D map of the world would form an incredibly valuable could certainly use its map to create new games. It could also license the map to other companies. And games aren t the only applications. Animated movies, historical reenactments, new VR-based social media apps, and all kinds of other applications could be created using a 3D map of the when Niantic has objects that it needs to capture anywhere in the world, it has the power 4 The Near Future Reportto simply crowdsource the imaging by placing Pok mon in the needed locations.

6 Think about It doesn t cost Niantic anything to collect 3D images anywhere in the world. It just crowdsources the work for this is a big play by Niantic. I believe Niantic has set itself up to be one of the most valuable gaming companies in the s already of the size and scale to become a public company, and with the real-world data, it has the potential to become much larger than just a gaming will have the ability to collect, mine, and monetize all the images and data that it collects from its users. It has the potential to become an absolute powerhouse. I just hope it doesn t adopt the same business practices as Facebook and there s one more key piece of the puzzle in Niantic s master The Technology That Will Replace Our SmartphonesI m on the record saying that AR glasses will be the next giant consumer electronics frenzy. Eventually, these AR glasses will replace our smartphones. This partnership will help accelerate consumer-grade, affordable AR in the AR industry is heating up.

7 This can be done to a lesser degree with smartphones, but AR glasses will bring the experience to life and provide a simple, seamless user are quite a few big names building products in this space right now. Google has Google Glass. Microsoft has HoloLens. Private company Magic Leap has the Magic Leap and soon Magic Leap Two. And both Apple and Facebook are working on their own versions of AR glasses as we think about Consumers are flocking to these AR games that run on smartphones. But smartphones are an awkward way to experience AR. You hunch over your move it squint at the It s just not a great experience. Yet people are spending billions of dollars on what do we think will happen when the first consumer-grade AR glasses are launched?AR glasses will make the AR experience seamless. No more hunching and You can play the game right in your line of sight as you walk around freely. That s a ve said it AR glasses are the next mass-market consumer frenzy.

8 And they won t be just for games. AR glasses will do everything your smartphone does and much more. And it will do all of this in a seamless, natural way. These devices will ultimately replace the these are all somewhat expensive, high-end products. The price tag limits the market for AR glasses. What s needed to spark the AR industry is an affordable mass-market product. And that s where Niantic comes Niantic s AR GlassesIn early 2021, Niantic hinted that it is now developing its own AR came as a surprise to the industry. After all, Niantic is a software company known for making AR games. It has not ventured into hardware up to this the next page is a look at the image that Niantic Near Future ReportNiantic s AR GlassesSource: NianticThese look like a sleek pair of glasses. They will likely have a great form factor. That s important. Consumers don t want to walk around wearing bulky goggles. To crack the code and gain mass adoption, companies need to produce AR glasses that look and feel like normal Niantic is on the right track.

9 And though this surprised the industry, Niantic s entry into AR hardware actually has great was in Tokyo when Pok mon Go launched. I remember how crazy people were about it. Central Park in New York was also Tokyo, I saw people driving around while holding their smartphones up. They were looking for Pok mon instead of focusing on the road. And it seemed like every other person on the street was looking down at their smartphone trying to find the digital many people were completely immersed in the game. It was fairly dangerous in that s easy to see how AR glasses would improve this experience tremendously. As I shared above, rather than holding up a smartphone, players would be able to see Pok mon right in their field of vision as they went about their day. That would make the game more enjoyable for players and much safer for s more, Niantic has been testing an early release of a new AR game called Pikmin in Singapore, which is a collectibles game similar to Pok mon.

10 The game just began rolling out worldwide October stickiness of these games gives Niantic a major advantage when it comes to AR glasses. Because the games are so good, consumers would rush out to buy Niantic s eyewear just to play here s where it gets even more Based on the work that I ve seen from Niantic since 2019, the company will likely incorporate 5G wireless technology into its glasses. That could take these games to a whole new level by providing a more seamless, immersive is on to something big here. And I believe it may decide to access the public markets on the back of an exciting new product announcement in the near future. It s just a matter of s why we ll continue to keep a close eye on this company as it gets closer to an initial public At the right valuation, Niantic would be an excellent way to gain exposure to the budding AR technology trend. So please keep an eye out. If it becomes time to act, I ll be sure to let my readers know right ,Jeff Brown Editor, The Near Future Report6 The Near Future ReportTo contact us, call toll free Domestic/International: 1-888-493-3156, Mon-Fri: 9am-5pm ET or email 2021 Brownstone Research, 55 NE 5th Avenue, Delray Beach, FL 33483.