Tencent, the world’s biggest video game company, has reportedly pulled out of launching its own virtual reality device, going against Sony, which will launch the PlayStation VR2 soon.
According to Reuters sources, it decided to cancel the launch of a device for virtual reality as a result of plans to cut jobs in its augmented reality unit, formed in June 2022. Currently, the division employs about 300 people.
The report claims that Tencent had already created a concept for a portable ring-like gamepad for its virtual reality hardware.
Despite this, a source said that the company decided to change its strategy due to the significant investment required to compete in the market and the fact that it did not expect to turn a profit from the launch until 2027.
Another source claimed that Tencent failed to come up with a decent number of promising games other than apps.
While Tencent denies it is scrapping its augmented reality unit, it told Reuters it is making some personnel changes following a change in hardware development plans.
The technology industry has been going through a major transition after the rise provided by the coronavirus pandemic, where companies like Alphabet, Microsoft, Riot Games and many others have made major staff cuts as a way to respond to the decrease in demand.
It seems that Sony will have a clear path in its new generation of virtual reality, at least for now.
