Tencent shifts focus to software technology and content ecology in XR field

02/18/2023 10:18 • Digital Disruptors • 121 views

It is reported that people close to Tencent responded to the news that Tencent will partially dissolve the XR (mixed reality) team, saying that the game XR business line will change the hardware development path and adjust the relevant business teams. However, this adjustment does not mean that Tencent will give up exploring the XR field. Tencent games will still consider other development directions, such as software technology and content ecology.

Southern Metropolis Daily: Tencent’s XR business is not completely suspended. It will still consider the development direction of software technology and content ecology in the XR field

Analysis based on this information:

Tencent, one of China’s leading technology companies, recently announced that it would partially dissolve its XR (mixed reality) team. The move has generated concern among investors and the tech community as it marks a significant shift in Tencent’s approach to the XR field. However, people close to Tencent responded to the news and indicated that the company is not abandoning its efforts in exploring XR technologies.

According to the sources, Tencent plans to change the hardware development path of its game XR business line and adjust the relevant business teams. This move suggests that Tencent is no longer focusing on developing hardware components that support XR technology. Instead, it will focus on software technology and content ecology, two crucial areas in the XR field. By investing in software technology, Tencent aims to create immersive XR experiences that can run on any device without requiring specialized hardware. Similarly, by investing in content ecology, Tencent aims to create a vibrant XR ecosystem that can attract developers and users to its platform.

The decision to shift focus away from hardware development is not surprising, given the challenges involved in creating hardware components that can support XR technology. Unlike other technologies that can be easily integrated into existing hardware, XR requires specialized components such as sensors, displays, and cameras. Building these components and integrating them into consumer devices is a complicated and time-consuming process that requires significant investment. Moreover, the market for XR devices remains relatively small, reducing the potential return on investment for companies that focus exclusively on hardware development.

In contrast, investing in software technology and content ecology offers several advantages. Firstly, it allows Tencent to create XR experiences that are accessible to a wider range of consumers. By creating software that can run on any device, Tencent can reach a larger audience and expand its business. Secondly, investing in content ecology can help Tencent create a vibrant XR ecosystem that can attract developers and content creators to its platform. By supporting the creation of innovative XR content, Tencent can differentiate itself from other companies that focus exclusively on hardware development.

In conclusion, despite its decision to dissolve its XR team, Tencent has not given up exploring XR technology. Instead, it is shifting its focus to software technology and content ecology, two critical areas in the XR field. By investing in these areas, Tencent hopes to create immersive XR experiences that can run on any device and attract developers and content creators to its platform. With its vast resources and expertise, Tencent is well-positioned to lead the way in the development of XR technology.

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