Tencent overhauls XR business on metaverse, with plans to adjust employees involved

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    Metaverse Photo: VCG

    Chinese tech company Tencent is reportedly overhauling its hardware development roadmap for its mixed reality (XR) business, with staff involved in the business transition also being “coordinated,” the Global Times reports. obtained from a source close to
    The source stressed that the move does not indicate that Tencent has given up on XR exploration, and that the company is still considering business “in other directions.”
    Employees affected by this decision will have a two-month transition period to prioritize interim transfers and external job referrals.
    Tencent has previously bet heavily on the concept of a virtual world metaverse. In June 2022, the company announced the formal formation of his XR division. The department was tasked with building Tencent’s augmented reality business, which included both software and hardware at the time. The unit has about 300 employees, according to a report by national news portal on Thursday.
    Tencent’s move comes at a time when many global tech giants, including Microsoft and Meta, have downsized their Metaverse teams or paused investments in the space. The artificial intelligence (AI) chatbot craze has somewhat put the brakes on heavy investment in the market buzzword Metaverse. Nearly every tech company has competed.
    “The metaverse is losing its appeal due to various limitations ranging from technology, infrastructure to ecosystem. Market expectations have dropped significantly over the past year due to slow progress,” a crypto industry insider named Zheng told the Global Times on Thursday.
    Nonetheless, he said the AI ​​business is a “clear direction” where companies can reap immediate benefits, which is why all tech companies are rushing to “get on board” with technology. A. “It’s also part of a broader strategy to improve efficiency during the recession,” Zheng said.
    In January, Microsoft reportedly laid off the entire team behind HoloLens, virtual reality, mixed reality, and mixed reality hardware. AltspaceVR, the metaverse social networking platform the company launched in 2015, will also shut down in March. In contrast, the company announced in January a new, multi-year, multi-billion dollar investment with ChatGPT maker his OpenAI.
    Meta also recorded huge losses in its metaverse business Reality Labs. In 2022, Meta lost $13.7 billion to Reality Labs, a 35% jump over his 2021 loss. The ambition to entrust the future of the company to the construction of the Metaverse.


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