Reuters reports Tencent abandons plans for VR devices

Tencent halted development of VR-headsets and related software, and also decided to streamline the staff of the metaverse-related division. Reuters reports, citing informed sources.

To run the XR unit launched in June 2022, the tech giant hired nearly 300 staff.

The company developed a concept for a handheld gaming controller. Difficulties in achieving rapid profitability and the need for large investments to produce a competitive product, among other factors, led to abandoning this strategy.

The business unit also lacked promising games and non-game applications.

According to an internal forecast, XR is not expected to be profitable until 2027.

Earlier the company’s CTO and head of the metaverse division, Andrew Bosworth, acknowledged that it could take years before fully functional AR glasses from Meta appear, despite billions in investment.

China’s national plan to develop the virtual reality industry envisages delivering 25 million devices by 2026, worth more than $48 billion.