Tencent has canceled plans to create its own VR headset

Tencent has scrapped plans to launch its own virtual reality hardware, according to reports.

According to Reuters sources, the move comes as the world’s largest video game publisher plans to cut jobs at its extended reality unit, which was formed in June 2022 and employs around 300 people.

The report claims that Tencent had come up with a concept for a ring-shaped portable game controller for its virtual reality hardware.

However, 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 make a profit until 2027.

Another source claimed that Tencent had failed to come up with a decent number of promising games and other apps.

While Tencent denied it was disbanding its extended reality unit, it told Reuters it was making some personnel changes following a change in hardware development plans.