Meta to return to China after 14-year hiatus: Here's how
Meta has struck a deal with Tencent to sell a new, low-cost virtual reality (VR) headset in China, as per a Wall Street Journal report. This collaboration marks Meta's comeback to the Chinese market, where Facebook and Instagram have faced restrictions since 2009. Tencent is set to be the sole distributor of Meta's VR headsets in China, with sales projected to commence in late 2024.
Competing with Bytedance's Pico VR headset
When it happens, Meta will rival Bytedance, the parent company of TikTok, which manufactures the Pico VR headset. At present, Meta's Quest holds the top spot in VR headset sales within the emerging market. Earlier this year, Meta revealed its next-generation mixed-reality headset, the Quest 3. For China, Meta intends to incorporate less expensive lenses in the headset compared to those used in the Quest 3.
Revenue sharing and content strategy
According to the WSJ article, Meta is expected to secure a larger portion of the device sales revenue, while Tencent will earn more from content and services. The budget-friendly headset will feature games and other applications developed by Tencent. Neither Meta nor Tencent have provided comments on the deal in response to inquiries.
Background on the Facebook ban in China
Facebook and Instagram along with X (formerly called Twitter) were banned by Chinese officials in mid-2009 after deadly riots occurred in Xinjiang province. The Chinese government accused these social media platforms of contributing to the turmoil. Through this new VR headset agreement, Meta seeks to reestablish its foothold in the Chinese market after a 14-year hiatus.
