According to a report, the Chinese company Tencent is cutting back its plans for the development of VR hardware.
According to a new report by the Reuters news agency, the Chinese company Tencent plans to reduce its costs and staff. The department for “augmented reality”, which has around 300 employees, is said to be affected by staff cuts as a result.
Sources close to report that part of the problem is the lengthy process of making hardware profitable. Internal projections are said to have confirmed that Tencent’s development and sale of its own VR system is unlikely to be profitable before 2027.
A lack of promising games may also have played a role. It just doesn’t really fit with the company’s new strategy anymore, according to one of the sources. Tencent has not yet publicly commented on the details and only speaks of “adjustments in some business teams”.
Said new strategy envisages, instead of relying on minority holdings as before, in addition to takeovers and mergers, increasingly relying on majority and controlling holdings, above all in foreign games companies. Metaverse assets are also reported to be of interest to Tencent.
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