According to Reuters, the key reasons for the course shift were “difficulties in reaching early profitability,” the scale of the expenditure necessary to produce a competitive VR headgear, and a dearth of engaging games and non-gaming applications. While the business had developed a prototype for a “ring-like hand-held gaming controller,” it did not anticipate the unit to be viable until 2027. (Despite the change in approach, Tencent does not intend to dismantle the unit.) “It no longer fits in with the company’s new overall strategy,” a source added.
