According to Reuters sources, he had a Chinese tencent stop developing your own equipment for virtual or augmented reality. The company came to the conclusion that this is an unprofitable project from an economic point of view. It is assumed that other reasons are the increasing regulation of the gaming market and the games themselves in China, as well as, last but not least, the lack of promising games and applications for virtual reality.
Tencent should have assessed that the technology would not begin to turn a profit on its own until 2027. “Virtual reality plans no longer fit into the company’s new strategy as a whole,” one of the sources told Reuters. The augmented reality division was only opened by the Chinese giant in June 2022. Although it has not been completely abolished, Tencent is significantly reducing the number of employees.
The situation around the regulation of the gaming industry in China was reflected, among other things, in the value of Tencent shares, which reached a five-year low. For the same reason, the company should pay more attention to business in the West. Instead of partial investments, full-scale acquisitions should now be given priority.
Source :Indian TV
