Tencent has become the latest tech giant to scale back development into the metaverse, as it recently canceled plans to create virtual reality hardware, according to Reuters.
The tech giant has cut headcount and cut costs in its metaverse development plans.
The Chinese conglomerate had previously outlined plans to build both software and hardware for the metaverse, a field that was still in its infancy.
Tencent has set up a team of about 300 people to accomplish this goal. The group launched last June and has been dubbed Tencent’s “extended virtual reality development division”.
Tencent said it did not disband the unit completely, but only cut staff.
The Reuters report also said that the need to achieve profits and large investment needs were among the reasons leading to the reduction of staff for Tencent’s metaverse.
In January, it was revealed that Microsoft would also be discontinuing some of its VR products as the teams responsible for developing the company’s metaverse had to bear the brunt of job cuts, according to public information. father earlier this month.
According to The Information, Microsoft has shut down the Industrial Metaverse Core team, a four-month project aimed at encouraging the use of the metaverse in industrial environments. Microsoft later also laid off employees working on the project, amounting to about 100 people.