Southern Metropolis Daily: Tencent’s XR business is not completely suspended. It will still consider the development direction of software technology and content ecology in the XR field

It is reported that people close to Tencent responded to the news that Tencent will partially dissolve the XR (mixed reality) team, saying that the game XR business line will change the hardware development path and adjust the relevant business teams. However, this adjustment does not mean that Tencent will give up exploring the XR field. Tencent games will still consider other development directions, such as software technology and content ecology.

Interpretation of this information:

Tencent, one of China’s leading technology companies, has made headlines after reports surfaced that it is partially dissolving its XR (mixed reality) team. According to sources close to Tencent, the game XR business line will alter its hardware development path and restructure its business teams. However, this doesn’t mean that Tencent will completely abandon exploring the XR field. Instead, the company will consider other development directions, such as software technology and content ecology.

The move to dissolve the XR team could be a result of the company’s desire to cut down costs. Tencent has been hit hard by the COVID-19 pandemic, which has impacted its operations significantly. The company is looking for ways to reduce expenses without sacrificing its competitiveness. By restructuring its XR business line, Tencent hopes to maintain a competitive edge in the gaming industry while reducing operational costs.

Another possible reason for Tencent’s decision is the current state of the XR market. Despite the hype surrounding XR technology, it is still in its early stages, and it may take time before it becomes mainstream. Furthermore, the hardware required for XR technology is still expensive, making it difficult for companies to mass-produce affordable products. Tencent’s decision to shift its focus to software technology and content ecology may be an attempt to address some of these challenges.

In summary, the report about Tencent partially dissolving its XR team signifies a shift in the company’s strategy towards developing XR technology. While Tencent will no longer focus on developing hardware for XR, it will continue to explore other development directions, such as software technology and content ecology. This move could be an indication that Tencent is looking to re-prioritize its investments in response to current market conditions and reduce costs while maintaining a competitive edge.