LG shuts down XR development unit in a year—Here's why
What's the story
LG Electronics has opted to shut down its Extended Reality (XR) development unit, a year after it was formed in late 2023.
South Korean news outlet The Bell reported the development.
The move is viewed as a strategic pivot for the tech giant, which will now focus on artificial intelligence (AI), home appliances, heating, ventilation and air conditioning (HVAC), and robotics.
Market challenges
Market growth slower than anticipated
The decision to shut down the XR development unit was reportedly driven by slower-than-expected market growth.
XR technology, which encompasses virtual reality (VR), augmented reality (AR), and mixed reality (MR), enables users to interact with real and virtual worlds through sight, sound, and motion.
Despite its potential benefits, the tech hasn't been adopted widely at a pace matching LG's expectations.
Partnership issues
LG's partnership with Meta faced challenges
LG Electronics had initially seen XR as a growth driver.
In early 2024, Meta CEO Mark Zuckerberg visited Korea and met LG Electronics CEO Cho Joo-wan.
However, the collaboration hit a roadblock due to strategic differences and the partnership reached an impasse.
This was worsened by Apple's Vision Pro falling short due to lack of software/content support, which contributed to the strategic differences between Meta and LG, prompting LG to shelve its XR business.
Rivalry in XR
Samsung, however, is doubling down on XR
Despite LG's decision to step back from the XR sector, its competitor Samsung seems to be doubling down on the tech.
Late last year, Samsung launched the "Infinite" XR device in partnership with Google and unveiled "Android XR," an AI-powered platform for headsets and smart glasses.
The move shows that while LG is pulling out of the market due to slower-than-expected growth, other tech giants like Samsung are still investing heavily in it.