Meta Platforms has reached an agreement with Tencent Holdings to sell a new, affordable virtual-reality (VR) headset in China. This move is an attempt by Meta to re-enter the Chinese market, where Facebook and Instagram are still blocked. The Wall Street Journal reported on Thursday that Tencent will be the exclusive seller of Meta’s headsets in China, with sales expected to begin in late 2024. The price of the headset was not mentioned in the report.
In 2009, Facebook and Twitter were blocked in China following riots in Xinjiang. This VR deal gives Meta the opportunity to compete with Bytedance, the owner of TikTok, which produces the VR headset Pico. Meta’s Quest is currently the top-selling VR headset, and the company recently unveiled the next generation Quest 3.
For the Chinese market, Meta plans to use cheaper lenses in the headset compared to the Quest 3. This version of the headset will also be available in other markets. According to the Wall Street Journal, Meta will receive a larger share of device sales, while Tencent will earn more from content and service revenue. The cheaper headset will also offer games and other apps published by Tencent.
Meta and Tencent have not yet responded to requests for comment from RushHourDaily.
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