Facebook parent Meta is set to re-enter the Chinese market with its cutting-edge VR headsets, according to the latest report from the Wall Street Journal.
Meta, which was banned in China for the last 14 years, aims to tap into the thriving gaming sector, where VR is emerging as the next frontier.
Meta has reportedly inked a preliminary deal with Tencent Holdings, designating Tencent as the exclusive distributor of Meta's VR headsets in China.
This collaboration marks Meta's attempt to regain a foothold in a market that has long blocked its flagship platforms, Facebook and Instagram.
The initial agreement outlines plans for Tencent to commence sales of Meta's VR headsets in late 2024.
However, specific details about the headset's anticipated price are yet to be disclosed.
Facebook and Twitter faced bans in China in 2009, following unrest in Xinjiang that authorities attributed to influences from these social media platforms.
The partnership with Tencent not only opens avenues for Meta to re-establish itself in China but also positions it as a contender against TikTok parent Bytedance, which produces the Pico VR headset.
Meta's Quest series, currently dominating the global VR market, includes the recently unveiled Quest 3.
For the Chinese market, Meta plans to integrate cost-effective lenses into the VR headset, distinguishing it from the Quest 3.
This specialized Chinese version is expected to be available in other markets as well.
The collaboration model indicates that Meta will secure a larger share of device sales, while Tencent will claim a substantial portion of content and service revenue.
The more affordable VR headset is anticipated to feature games and applications provided by Tencent, contributing to Meta's re-entry strategy into the dynamic Chinese market.