Meta is poised to re-enter the Chinese market after a hiatus since Facebook's blockage in 2009.
Reports suggest that the tech giant is planning to introduce a cost-effective version of its virtual reality headset, collaborating exclusively with Tencent, the gaming powerhouse. While sales are tentatively scheduled to commence in late 2024, some details of the deal are still in the finalization stage.
Meta's New VR Headset in China
After banning Facebook in 2009, Meta is poised to return to the Chinese market in preparation for the release of the new and cheaper VR headset in 2024.
According to The Washington Journal, the upcoming headset promises to outshine the Quest 2 in performance while opting for slightly lower-quality optics than the anticipated Quest 3. The target market of this wearable is the budget-conscious consumer.
Meta aims to capture a larger share of headset sales, with Tencent focusing on content and service revenue, including software subscriptions and game sales.
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Market Impact: Boosting Meta's VR Division
This strategic collaboration opens a significant market for Meta's VR division, which has faced financial challenges.
While the deal presents an opportunity, uncertainties linger around potential government approvals needed for device sales, considering China's stringent regulations impacting the gaming industry, per Engadget's report.
While VR gaming is popular, China's strict rules have already affected Tencent, the global gaming giant. The move into China may not be a panacea for Meta's VR challenges, especially with fierce competition from ByteDance's Pico headset.
The Chinese firm's own VR division faced uncertainties but rebounded, signaling a strategic shift in response to the impending Meta partnership.
Meta's Worldwide VR Dominance
If finalized, the deal would mark Meta's return to China after 14 years, presenting an opportunity to tap into one of the world's largest markets.
With a 50 percent global VR market share, the company behind Facebook surpasses competitors like Sony's PlayStation VR2 and Pico's VR headset. Apple's entry with the Vision Pro headset adds to the competition, but a significant presence may hinge on the release of a more affordable version in the future.
Throwback to the Meta-Tencent Negotiation
Back in mid-February, Tencent was negotiating with Meta to sell its VR wearable in China. The country is a perfect market for this kind of product since it has the largest number of internet users globally.
Tencent also believed that Meta's Quest 2 VR would help them boost video game adoption across China. With this gadget poised to attract players, it is projected to be purchased by people who are into gaming.
Meanwhile, Samsung announced that its real-time translation feature is coming to the Galaxy flagship model. The new functionality will aid in faster translation of text formats and audio during phone calls. This is useful regardless of the language being used.
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