iPhone sales may be dropping, but that doesn’t mean the device is outdated. Apple CEO Tim Cook is hugely interested in augmented and virtual reality, pointing to the possibility we could see classic Apple gadgets like the iPhone, Mac and Apple Watch include extended VR capabilities in the future.

In a July earnings call for Apple, Cook said:

“We have been and continue to invest a lot in [virtual reality]. We are high on AR for the long run.”

Piper Jaffray analyst Gene Munster noted the company spent more money on research and development than it has earned back for the last few quarters, suggesting Apple is developing self-driving cars as well as virtual and augmented reality.

Apple isn’t the only major company to hop on the trend; Microsoft, Facebook and Google are all likely to put out reality-warping gadgets in the future.

Cook cited the runaway success of Pokemon Go as a reason for investing in virtual and augmented reality. He said he wanted to make sure the iPhone was able to support this technology.

Of the iPhone, Cook said:

“AI makes it more and more important, as the phone becomes your assistant. In terms of AR and the Pokemon phenomenon, it’s incredible what has happened there.”

If Apple collects its standard 30% of earnings from Pokemon Go, as it usually does with apps sold from its App Store, it could generate as much as $3 billion in profit over the next few years.

With industry technology juggernauts investing in the technology, Munster firmly believes Pokemon Go is just the beginning:

“I think we are probably going to look back at this and say this was when we started to realize that it was real." 

It’s a virtual race now to see which companies can put out the best VR and AR machines. Either way, Cook’s confidence is a testament that VR’s market impact is just getting started.

Anki, a consumer robotics and artificial intelligence startup that programs physical objects to be intelligent and adaptable to our physical world and designed to solve problems, is now coming to life with a robotic toy car game called Anki Drive. 

On June 10, 2013 Apple CEO Tim Cook introduced Anki Co-founder, Boris Sofman, who showed off Anki’s new real-world video game. In the debut, Boris explains how they are using IOS devices and the IOS platform to bring artificial intelligence and robotics into our daily lives. 

In their second demo, Anki places people in charge of the cars, so that we would be able to see how the mechanic works. The people in charge of the cars raced each other, shot each other down and also drew in other cars with tractor beams. 

How it works

Each player needs an IOS device and the Anki app. With the app you are able to not only play, but also feel the device vibrate and hear the sound effects in sync with the cars on the track. The sound effects and vibration help you hear and feel when your car is shot. On the track, you are able to visually see your car shot because it will begin to slow down and the car lights will begin to flicker.

Release Date

Anki Drive goes on sale in the Apple Store for $199 on October 23. The kit includes a mat and two cars. If users want additional cars, each car costs $69. The app is free and players are able to win additional game capabilities for the cars the more they play the game. These additional capabilities include land mines to throw and rail guns to shoot. 

This will be Anki’s first product, since they are a startup, so it will be hard to know whether the game will play out as they hoped. They do want people to test out the gameplay before the release and their hope is that they are able to fix any weird bugs that may appear. 

Anki’s video game ideas sound pretty neat and I expect that as their business grows they will produce better and cooler games. What is your impression of Anki Drive and what are your thoughts regarding what they are trying develop within the video game industry?