People familiar with the matter: Tencent has given up its plan to develop VR hardware and has cut costs and employees of the metaverse department

According to Reuters, citing sources, Tencent is abandoning plans to enter virtual reality (VR) hardware, as Tencent recently cut costs and staff at its Metaverse division. In June last year, Tencent launched the "extended reality" XR department to develop virtual reality software and hardware, and recruited nearly 300 people for this purpose. But according to internal forecasts, the XR project is not expected to be profitable until 2027.