Tech giant Meta Platforms Inc., formerly known as Facebook, is reportedly nearing a significant agreement that would bring its mixed reality headset to the Chinese market through a partnership with Tencent Holdings Ltd. While no official statement has been made by either party, sources familiar with the matter revealed that Tencent would manufacture a version of the headset using Meta's hardware specifications and software. The proposed plan is for the headset to be marketed and branded under the Tencent name. However, it should be noted that discussions are ongoing, and the name and branding could still change.
The potential pact with Tencent could mark Meta's reentry into the Chinese market, following the blocking of its platforms, including Facebook and Instagram, several years ago. This partnership would bring together two major players in the metaverse space and could present exciting opportunities for both companies. Notably, Tencent was previously reported to be considering acquiring Chinese gaming handset maker Black Shark, a move that would align with its metaverse ambitions.
In addition to the Tencent collaboration, Meta is actively seeking relationships with contract manufacturers and original equipment makers (OEMs) across the globe. This indicates a broader strategy of expanding its headset's availability in multiple markets.
Meta's latest generation head-worn device, the Quest 3, made its debut in September. The company positioned the device as a mass-market headset, pricing it at $500, reflecting Meta's confidence in the growing popularity of mixed reality among consumers.
It is worth noting that Meta's relationship with China has been fraught with challenges in the past. In August, the tech giant announced that it had uncovered a large-scale Chinese influence campaign, which it referred to as the "largest known cross-platform covert influence operation in the world." As a result, Meta took action by removing thousands of Facebook accounts and pages linked to the campaign. The operation was found to spread positive sentiments about China while criticizing the US, Western foreign policies, and the Chinese government's critics. Meta's investigation revealed a connection between the campaign and individuals associated with Chinese law enforcement.
As negotiations between Meta and Tencent continue, both companies anticipate the potential benefits of a partnership that would bring Meta's mixed reality headset to the Chinese market. If finalized, this collaboration could have significant implications for the metaverse industry and the future adoption of mixed reality technology in China.