According to a Wall Street Journal report in November, Meta was in talks with Chinese tech giant Tencent in hopes of bringing a cheaper version of Quest to Mainland China. Now, according to a new report from Chinese language outlet Sina Finance, that deal has allegedly been suspended.

Update (January 25th, 2024): The Sina Finance report (via Mixed) maintains the reason for suspending the talks could be due to disagreement over details of the project. It was rumored that Meta was working with Tencent to bring a prospective ‘Quest 3 Lite’ to China under Tencent’s auspices, which at the time was expected to start sometime in late 2024. Tencent hasn’t responded to info requests from Sina Finance. We’re reaching out to Meta and will update this piece when/if we hear back.

The original article covering the talks follows below:

Original article (November 10th, 2023): Meta’s planned return is thanks to a deal—allegedly still in preliminary stages—with China’s Tencent, the world’s largest videogame company and soon-to-be exclusive seller of Meta headsets in China, WSJ reports, citing people familiar with the matter.

The report maintains Tencent will start selling the headset beginning in late 2024, with the two companies reaching a deal after about a year of negotiations.

Quest 3 | Photo by Road to VR

While the report didn’t mention a potential price of the “lower-priced” VR headset, it’s said the China version could use cheaper lenses than the more costly pancake optics in Quest 3. It’s also said the China-approved version could be sold in other markets besides mainland China.

The proposed deal is set to grant Meta a larger share of device sales, while Tencent will have a larger share of content and service revenue, as the headset will feature games and apps published by the Shenzhen, China-based entertainment conglomerate.

Vision Pro Has Apps and Quest Has Games, What Can Samsung Bring to XR to Compete?

As it is today, Meta’s VR hardware is subsidized by content sales, which would make the deal less attractive for Meta on paper. Still, using its VR headset tech to re-enter China, where it might further leverage growth opportunities for other products, may be worth the price.

Meanwhile, it seems Meta is striking in China just as the homegrown competition falters. While ByteDance’s VR division Pico Interactive has gained territory in Europe over the past year with the launch of its Pico 4 standalone, earlier this week it was reported that Pico is set to lay off “hundreds” of employees as it refocuses on hardware development, something that has all but dashed hopes of taking on Meta in its home turf.

Newsletter graphic

This article may contain affiliate links. If you click an affiliate link and buy a product we may receive a small commission which helps support the publication. More information.

Well before the first modern XR products hit the market, Scott recognized the potential of the technology and set out to understand and document its growth. He has been professionally reporting on the space for nearly a decade as Editor at Road to VR, authoring more than 3,500 articles on the topic. Scott brings that seasoned insight to his reporting from major industry events across the globe.
  • ViRGiN

    It’s ridiculous to claim Pico gained territory in Europe.
    Yes, it’s sold here. No, nobody cares.

    Meta entering China is a promising concept for the industry, even when they are completly shielded from outside world.

    • kakek

      I’ve seen Pico used in a few touristic / comercial uses.
      Because if you’re going to make your own software for specific use anyway, they offer slightly better hardware for slightly lower price.

      Must not be much in terms of volume though.

  • silvaring

    What hardware advantages does this bring the global VR eco system?

    So far FB has stuck to US / EU… let Pico and the clones handle China. What now? Will we see a standardization of the hardware and controllers along with software standaradizations (e.g navigating workspaces with hand tracking / pinching)?

    Or is this all just another pipe dream like most of consumer vr for the last 5 years?

    • Anonymous

      It will make VR profitable for Meta and Zuck can tell stpuid short-term investors to stfu and let him do his VR dream.

      It can also convince AAA game companies, many of whom also controlled by souless accountants who don’t play one second of games – to finally invest in VR.

      • silvaring

        What effect will it have on VR hardware standardization though, thats my question.

  • another juan

    may this indicate that the much rumored quest 3 lite won’t be sold in america at all?

    • Guest

      …or vice-versa a PICO lite with a superior user interface will be sold in America???

    • Anonymous

      Why would Quest 3 Lite not be available in the US just because it is released in China?

      • another juan

        Because it makes sense that a product designed for the Chinese market will be sold in similar -emergent- markets, instead of the usual 1st world ones

  • I wonder if this time the operation will succeed (with the Go was quite a flop)

    • MeowMix

      the Go itself was a flop ….

  • Chris

    China’s Tencent is the biggest data collector and ‘Sanctioned Spyware’ producer in the world, way bigger than even Meta’s products. This deal gives Tencent the data harvesting rights which is their stock in trade. A Dystopian Dream Team – Meta and Tencent. Yikes.

    • MeowMix

      I bet this guy uses reddit, discord, which are both platforms Tencent has its claws in

      • Chris

        nope, and nope, wiseass.

    • Arno van Wingerde

      So, which VR set are you using?

    • CrusaderCaracal

      Yeah because china gives a shit about you

      • Chris

        keep being blissfully ignorant. kudos

      • Anonymous

        China does give a shit about you. Especially if you are the easily gullible extreme left and right so they can feed you propaganda information to brainwash you.