The Hong Kong-based tech company Tencent has said it will abandon its aspirations to create VR devices because its wager on the metaverse has run into trouble. Due to the uncertain economic future, the corporation has also reduced costs and workers in its metaverse division.
Tencent had already made significant investments in VR technology, envisioning it as a major development engine and innovation in the years to come. But, the business has now concluded that creating VR hardware is too expensive and risky, especially given its difficulties.
The metaverse market’s economic outlook has also been worse than expected. Tencent’s metaverse division has been compelled to make staff and cost reductions. Defending ongoing investment in the short term was challenging because the company’s wager on the metaverse was not expected to become lucrative until 2027.
The phrase “metaverse” refers to a shared, virtual realm where people can interact with each other and digital items in various immersive ways. Science fiction author Neal Stephenson first used it in his 1992 book Snow Crash. Before the metaverse completely takes off, enormous technological, governmental, and ethical issues still need to be resolved despite significant hype and investment in the larger metaverse ecosystem.