Meta Partners with Tencent to Sell Low-Cost VR Headsets in China by Late 2024

Meta's first step back into China since 2009: A cost-effective VR headset, more powerful than Quest 2 but with less expensive lenses than Quest 3, expected to begin sales in 2024, exclusively through Tencent.

Meta, formerly Facebook, is partnering with Chinese tech giant Tencent to sell a low-cost VR headset in China by late 2024 – marking Meta's return to the Chinese market since its social media platforms were blocked there in 2009.
The new VR headset set to launch will be more powerful than Meta's Quest 2, but uses cheaper lenses than the Quest 3, with the aim of tapping into China's large gaming market.
Despite challenges due to strained U.S.-China relations, the partnership could pressure U.S officials to relax their stance on technology restrictions with China, particularly if Meta's venture proves successful.
The exclusive deal positions Tencent as the sole distributor of Meta's VR headsets in China, following a year-long negotiation. It's anticipated that Meta will earn more from headset sales, whilst Tencent will reap the majority of content and service revenue.
The agreement arrives at a time of globally decreased VR headset demand and skepticism about the technology's future. Integration into the Chinese market could provide a significant boost for Meta's VR division.