Meta to Rollout Low-Cost VR Headsets in China

According to the Wall Street Journal, Meta Platforms has announced a partnership with Tencent Holdings to launch a budget-friendly virtual reality (VR) headset in China. This move comes as Meta Platforms seeks to re-enter a market where Facebook and Instagram are still inaccessible.

As per the source, Tencent has reportedly secured an exclusive deal to sell Meta's headsets in China. The deal will allow the Chinese video game maker to begin selling the headsets in late 2024.  The VR deal presents Meta with an opportunity to re-enter the Chinese market and go head-to-head with Bytedance, the owner of TikTok and VR headset maker Pico.

At present, Meta's Quest is leading the sales charts in the emerging VR market. Earlier this year, the company revealed the next-generation mixed reality headset Quest 3. According to WSJ, Meta intends to use less expensive lenses in the headset for China compared to those used in the Quest 3. This version will be available for purchase in additional markets as well.

According to the report, Meta will have a larger portion of device sales, while Tencent will have a bigger share of the content and service revenue. The affordable headset will also offer games and other apps from the Chinese company.