According to Archyde.com 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 regarding 300 people.
The article claims that Tencent had already created a concept for a portable ring-like game controller for its virtual reality hardware.
Despite this, a source said 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 Archyde.com it is making some personnel changes following a change in hardware development plans.
The technology industry has been going through a major transition following 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.
