When you enter the lobby turn to the right and you will see your profile picture high on the wall surrounded by displays to hold trophies. Click on your profile icon image, this will bring up a rectangular menu. Choose the “Icon & Name” box to change either of the two. You might need to reopen the game in order for other players to see your new name.
On the same menu, select “Change Avatar”, which brings you to your Oculus environment to personalize your avatar.
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