Meta's Virtual Boost: Tech giant to return to China after 14 years to sell its Quest VR headset

Meta Platforms, formerly known as Facebook, has reportedly entered into a preliminary agreement with Tencent Holdings to introduce a cost-effective virtual reality (VR) headset in the Chinese market. This move is aimed at re-entering a market where Facebook and Instagram have been blocked for several years, according to a report by The Wall Street Journal. The agreement outlines that Tencent will serve as the exclusive distributor of Meta’s VR headsets in China, with plans to commence sales starting in late 2024. The report did not provide details about the expected price of the headset. Facebook and Twitter were initially blocked by the Chinese government in mid-2009 following violent incidents in Xinjiang, which authorities claimed were influenced by these social media platforms. The partnership with Tencent offers Meta an opportunity to re-establish its presence in the Chinese market and compete with TikTok’s parent company, Bytedance, which produces the Pico VR headset. Meta’s Quest series currently dominates the emerging VR market, with the company having introduced the next-generation mixed reality headset, Quest 3, earlier this year. For the Chinese market, Meta plans to incorporate cost-effective lenses in the VR headset, different from those found in the Quest 3. This Chinese version is expected to be available in other markets as well. The report further noted that in this collaboration, Meta would secure a larger share of device sales, while Tencent would have a greater portion of content and service revenue. The more affordable VR headset is set to feature games and other applications provided by the Chinese company. (With input from agencies)