Tencent has stopped development of VR headsets and related software, and also decided to optimize the state of the division associated with the metaverse. Writes about it Reuters with reference to informed sources.
For the operation of the division launched in June 2022 XR The tech giant has hired nearly 300 people.
The company developed the concept of a handheld game controller. Difficulties in achieving quick profitability and the need for large investments to produce a competitive product, among other things, prompted the abandonment of this strategy.
The business unit also lacked forward-thinking games and non-gaming applications.
According to the internal forecast, XR will not become profitable until 2027.
Earlier, the company refused to finalize the deal to buy startup Black Shark. The sources cited increased control by regulators and a delay in the review process as the reason. The acquisition was expected to strengthen the company’s position in the emerging sector.
The interlocutors of the agency recalled that 2022 was not an easy year for Tencent due to severe restrictions from supervisory authorities and the consequences of the anti-COVID policy.
In November, Meta Corporation announced it was laying off more than 11,000 people (13% of its staff) as part of a reorganization of its structure.
According to the results of October-December, the loss of the Reality Labs division connected with the metaverse amounted to $4.28 billion versus $3.3 billion in the fourth quarter of 2021.
The total negative financial result of the business unit for the past year amounted to $13.7 billion (in 2021 – $10.2 billion). CEO Mark Zuckerberg emphasized that he found no reason to change the strategy of Reality Labs in the long term.
Previously CTO company and the head of the Metaverse-related division, Andrew Bosworth, admitted that it could be years before the full AR glasses from Meta appear, despite billions of dollars of investment.
Recall that China’s national plan for the development of the virtual reality industry provides for the supply of 25 million corresponding devices worth over $48 billion by 2026.
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