Daily Management Review

Tencent will sell Meta's new VR helmets in China


Tencent, the leading player in the global video game business, will become the exclusive distributor in China of new, lower-cost virtual reality (VR) helmets from the American Meta, writes the Wall Street Journal.

Marco Verch
Marco Verch
Tencent will begin selling helmets at the end of 2024, according to a preliminary agreement between the companies. The devices will also be available outside of China.

Tencent will earn a higher proportion of revenue from the sale of connected services and content, such as games and software subscriptions, while Meta will receive a larger share of revenue from the sale of the devices itself.

Tencent will provide users with access to gaming and other apps through the helmets.

It is unknown whether the Chinese company will need to seek formal approval from authorities in order to bring these devices to the country's market and sell VR content to their customers, as virtual reality activities in China are currently unregulated. The WSJ notes the risks for the partners as a result of the country's stronger regulation of the market for video games and other digital property.

The agreement between Tencent and Meta is not final, and the terms may alter, according to the newspaper. The parties' negotiations lasted nearly a year.

source: ft.com