Daydream had issues such as draining phone batteries and lack of smartphone support. Google abandoned Daydream just as Quest began to take off. Google could potentially regain ground in the XR market by focusing on gaming, offering a curated selection of apps, supporting hand-tracking and controllers, and utilizing powerful hardware like Snapdragon XR2+ Gen 2. The success of Android XR will depend on how well Google can differentiate itself from competitors like Meta and Apple.