Tencent Holdings abandoned its plans to enter the virtual reality hardware market

Due to a challenging economic climate, Tencent Holdings has decided not to pursue its virtual reality hardware plans. As a result, the company has had to reduce costs and staff at its metaverse unit. The XR project was not expected to become profitable until 2027, and the unit lacked promising games and non-gaming applications. Tencent had also planned to buy gaming phone maker Black Shark but eventually walked away due to a shift in strategy, regulatory scrutiny, and an expected lengthy review process.