Meta in talks with Tencent to introduce VR headsets in China
According to recent reports from the Wall Street Journal, Meta, the company headed by Mark Zuckerberg, is engaged in discussions with Chinese enterprises to introduce its VR headsets into the Chinese market. The move aims to reestablish Meta’s presence in China and expand the availability of its devices. However, some Chinese companies express concerns due to Zuckerberg’s previous statements, which may pose challenges to potential collaborations.
One of the companies reportedly in negotiations with Meta is Tencent. The decision to proceed with talks was made by Tencent’s founder and chairman, Pony Ma, after an internal debate among executives. However, Tencent has stated that they first need to understand the cooperation conditions put forth by Meta.
Challenges and Opportunities in China’s VR headset market
If an agreement is reached, Meta’s Quest 3 headset is likely to make its way into the Chinese market. Unveiled prior to Apple’s Vision Pro in early June, the Quest 3 features the Pancake optical design, resulting in a 40% reduction in weight and thickness compared to the Quest 2. Powered by the latest Qualcomm chip, the headset boasts performance more than twice that of the previous Snapdragon XR2 generation. While the device has not yet been officially released, Meta has announced its pricing, starting at $499, which represents a significant increase compared to its predecessor.
Currently, PICO, a VR headset manufacturer acquired by ByteDance, holds significant influence in the Chinese market. PICO’s PICO 4 series of VR headsets offer a price advantage over Meta’s Quest 3. Furthermore, the VR headset market in China is relatively small, making the success of Meta’s collaboration with Chinese companies uncertain, even if the Quest 3 is introduced.