February 23, 2023

Tencent in Talks with Meta To Sell VR Headsets in China

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China’s largest videogame company Tencent is reportedly in talks with Meta to sell the Quest 2 VR headsets in China, according to the Wall Street Journal. 

The newspaper said if the talks were successful and a deal reached, Meta will have access to a massive new market that is so enthusiastic towards emerging technologies and achieve booming sales. 

The discussions are still in the first phases and kinda complicated given that Facebook is banned in China since 2009, in addition, any deal with a Chinese company will raise questions given that Meta is under the sights of government regulators. Therefore the companies do not only need to overcome the past, but they should tackle how they would handle the data. 

Meta Platforms’ Reality Labs virtual reality unit reported the biggest loss in a quarter, hitting $$4.28 billion in the fourth quarter of 2022, compared to $3.304 billion in the same quarter a year ago.

The company’s metaverse division posted collective losses worth $13.72 billion throughout the last year, according to CNBC. Reality Labs’s losses were more than six times its revenues in 2022 as its overall revenues recorded $2.16 billion ($727 million in the fourth quarter), compared to $2.27 billion in 2021.

These revenues are thought to be achieved due to increasing the price of its Oculus Quest 2 headsets by $100 to $400 in August 2022 for inflationary pressures, in addition to the launch of the Meta Quest Pro, an enterprise high-end version of its headset, for $1,500.

Reality Labs is expected to continue recording losses in 2023, as they could be bigger in the coming quarters.

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