LG seems to be putting a hold on its partnership with Meta to develop an extended reality (XR) device that would challenge Apple’s Vision Pro headset, just three months after announcing the joint venture.
While multiple Korean news outlets are reporting that Meta's partnership has been off due to a lack of “synergy” between the two tech giants, LG has denied calling off the deal. “LG Electronics continues the XR partnership with Meta forged in February but is controlling its pace,” LG said in a statement to Korea JoongAng Daily.
Products from the partnership, are set to combine Meta’s Horizon Worlds mixer reality platform with content and services from LG’s TV business. The new XR headset was said to hit the market next year. The potential for on-device AI integration was also being explored using Meta’s LLMs (large language models).
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Is The Meta-LG Partnership Really Over?
Adding to the confusion over what’s actually happening with the XR Glasses, Seoul Economic Daily reports that the partnership hasn’t been called off, and is now likely targeting a 2027 release date.
Meanwhile, many publications reporting that LG has called off the deal with Meta suggest the company is now looking to partner with Amazon and take advantage of Amazon Prime’s library of streaming content and 200 million subscribers.
LG has a track record of confirming rumors that it had previously dismissed, so any reports about the Meta partnership being called off shouldn’t surprise people.
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Meta Struggling To Prevent Its AR, VR Business
This potential relationship breakdown comes as Meta seems to be struggling to prevent its AR and VR businesses from losing money, with GamesIndustry.biz reporting that Reality Labs has spent a billion dollars every month since June 2022.
Meta doesn’t seem to be affected; however, announcing that it expects these losses to boost significantly YoY due to Meta’s “ongoing product development efforts and our investments to further scale our ecosystem.”
Meanwhile, the wider VR / AR product industry also seems to have lost its grip amid declining interest from users. Sony also reportedly put a halt on the production of its PSVR 2 headset due to a backlog of unsold inventory, and disappointing sales of Apple’s Vision Pro headset have seen some Apple stores selling as few as two units per week, as per Bloomberg’s report.