By Meta Platforms Inc. has reached a preliminary agreement to introduce a new, affordable version of its virtual-reality headset in China, marking the tech giant’s long-awaited reentry into the Chinese consumer market. According to The Wall Street Journal, Tencent Holdings Ltd. will manufacture Meta’s latest headset and serve as its exclusive distributor in China, starting in late 2024. While Meta will mainly generate revenue from device sales, Tencent will primarily profit from content and service revenue. It is important to note that this deal is subject to change as it is currently provisional.
Since Facebook was blocked in China in 2009, Meta’s popular platforms such as Instagram and WhatsApp have remained inaccessible in the country. With this agreement, Meta is poised to tap into the vast Chinese market, especially considering the lukewarm global sales of its Quest line of VR headsets. However, regulatory obstacles may emerge in China, which has recently imposed stricter regulations on videogames and digital content.
The upcoming headset will feature more cost-effective lenses compared to the existing Quest 3 model, and it will be available in other international markets as well. In the United States, the Quest 3 starts at approximately $500.
This strategic partnership with Tencent promises great potential for Meta Platforms Inc., granting them an opportunity to captivate Chinese consumers and expand their influence in the ever-evolving world of virtual reality.
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