Tencent backs down on its commitment to the metaverse, discarding its own virtual reality hardware

Tencent makes decisions after losing value in 2022.

Watch out, Mark Zuckerberg . Another company seems to have become disillusioned with the metaverse .

We are talking about the Chinese giant Tencent Holdings , which is abandoning its plans to venture into virtual reality hardware.

Reuters reports its division dedicated to the metaverse has been one of the hardest hit by the cost cut.

Tencent’s big gamble

Tencent , which owns several companies including Riot Games , revealed its plans to venture into both virtual reality software and hardware in June last year.

The extended reality or XR unit kicked off with 300 new employees.

An unclear path to profitability and the large investment required would have prompted the drastic move by Tencent .

Tech giants like Tencent and Alibaba have also been affected by increased regulation by the Chinese government.