Tencent, the world’s largest video game company, has reportedly canceled its plans to make a VR headset, citing economic pressures as the cause. This comes after a multi-year pipeline to create a new, extended reality ecosystem with both software and hardware components was announced.
The VR headset, which was going to be called the Meta Quest, was slated to be a unique invention featuring a ring VR controller among other hardware. The company invested heavily in the project, opening an entire XR division with over 300 employees.
However, Tencent’s internal forecasts showed that it would be very costly to launch the XR platform and would not turn a profit until 2027. With the current economic situation, the company has decided that it is no longer worth the risk and has abandoned the project.
This news is just one of many changes that video game publishers and platform-holders are making in light of the current economic climate. Microsoft, Electronic Arts, Take-Two Interactive, and other companies have announced layoffs in their game divisions recently.
It remains to be seen what other changes the industry will undergo and if Tencent will be able to make a successful entry into the VR market at some point in the future. The company is scaling back its plans and focusing on more achievable goals.