Recent reports indicate that LG is pausing its partnership with Meta to develop an extended reality (XR) device that would rival Apple’s Vision Pro headset. This decision comes just three months after the joint venture was announced, raising questions about the future of the collaboration. According to multiple Korean news outlets, the partnership has faced challenges due to a lack of synergy between the two companies.
While some sources claim that LG has terminated the deal with Meta entirely, LG has denied such allegations. In a statement to Korea JoongAng Daily, LG stated that they are continuing the XR partnership with Meta, albeit at a controlled pace. The initial plan was to combine Meta’s Horizon Worlds mixed reality platform with LG’s TV business to bring innovative products to the market next year. However, with conflicting reports about the status of the collaboration, the future of the XR device remains uncertain.
Adding to the confusion, there are speculations that LG is exploring a new XR headset partnership with Amazon. This move could leverage Amazon Prime’s extensive library of streaming content and large subscriber base of 200 million. While the details of this potential partnership are still unclear, it suggests a shift in LG’s strategy for XR devices.
The timing of LG’s decision to pause the partnership with Meta coincides with Meta’s financial challenges in the AR and VR market. Reports indicate that Meta’s Reality Labs has been losing a substantial amount of money every month since June 2022. Despite these losses, Meta remains committed to investing in product development and scaling its ecosystem. This financial instability within Meta raises concerns about the sustainability of the XR device project with LG.
The uncertainties surrounding LG’s partnership with Meta reflect broader challenges in the VR/AR industry. Consumer interest in VR and AR products is declining, making it difficult for companies to drive sales and profitability in this market. The struggles faced by Meta and LG underscore the need for innovation and strategic partnerships to navigate the evolving landscape of XR technology.
The future of LG’s XR device partnership with Meta hangs in the balance. While LG maintains that the collaboration is still ongoing, conflicting reports and potential shifts in partnerships raise doubts about the project’s progress. As the AR and VR industry continues to face financial challenges and changing consumer preferences, LG and Meta must carefully assess their strategies to ensure the success of their XR device venture.
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