Tencent has given up their plans to release a virtual reality device, abandoning their development plans as the metaverse struggles. The report comes from Reuters, with three anonymous sources confirming their virtual reality hardware and software plans had been scrapped after just eight months of development and a workforce of 300 people. The same sources shared that Tencent’s plans were not expected to be profitable until 2027, thanks to a lack of promising software.
The push for the metaverse has been led by, well, Meta, with other big tech companies chasing the technology with their own hardware devices. As time has passed, many looking to enter the metaverse space have abandoned their pursuits or cut their development teams substantially. One such example would be over at Microsoft, with the tech giant cutting entire teams of virtual reality, mixed reality and HoloLens workers. Meta, who even went so far as to rebrand their former Facebook branding after the technology, has also been cutting their workforce, losing 11,000 of their worldwide 87,000 employees back in November.
Tencent shares slipped by 2.5% direct after the Reuters report on their metaverse cutbacks, as the market reacts to their reported withdrawal from the VR space. Some companies such as Sony are still pursuing VR devices, with the PSVR 2 launching to glowing and enthusiastic critic reviews. Exactly how the audience will respond to the hardware is yet to be seen, as consumers globally continue to show some hesitation towards pursuing virtual reality devices as a mainstream trend.
What do you think of the current state of virtual reality? Is Tencent’s reported withdrawal from the market just a bump in the road, or a sign of something more substantial? Let us know in the comments below, and keep your eyes on TeqLuster, the latest enthusiast site from Luster Network, for more tech news.