Tencentfocusing on reducing costs on the metaverse side, gave up on virtual reality planning.
One of the world’s largest video game makers. Tencent, the “extended reality” ( XR ) made an ambitious plan to create both virtual reality software and hardware in its unit. However, considering the rising costs and market conditions, the video game company gave up on virtual reality planning.
Tencent Abandoned Its Virtual Reality Plan
Tencent, who came up with a concept for the game controller, had to move away from this strategy due to the difficulties in achieving rapid profitability and the large investments required to produce a competitive product. One of the sources on the subject said that according to one estimate, the XR project is not expected to become profitable until 2027.
Relevant source making statements on the subject, “It no longer fits perfectly with the new strategy of the company as a whole.”used the phrases. TencentEarlier in the year, the gaming phone maker to strengthen its hardware move and recruit another thousand employees to the relevant unit. Black SharkHe also planned to buy it.
A source with direct knowledge of the subject to Reutersas quoted, Tencent, eventually withdrew from this deal due to a change in strategy as well as increased regulatory scrutiny and a lengthy review process.
resources, Tencent’s He said he advised most of the unit staff to look for other opportunities. However, the Chinese tech news outlet confirmed this report at 36Kr. Tencent declined to comment on whether the regulatory review broke the deal. Company, to Reuters In a statement, he said he was making adjustments to some of his business teams as hardware development plans changed. However, the company that they did not deploy the XR unithe also added.
In the past year, regulatory pressures and Covid-19economic problems caused by the pandemic, Tencent’sIt had been a tough year.
