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Tencent shifts focus from XR hardware to software technology and content ecology

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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 bus…

Tencent shifts focus from XR hardware to software technology and content ecology

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

Interpretation of the news:


The recent news on Tencent partially dissolving its XR (mixed reality) team has evidently raised concerns amongst the public. However, Tencent’s close sources have spoken up to address all uncertainties. The game XR business line will be redirected from a hardware development path to alternate development directions, such as software technology and content ecology.

This decision does not imply that Tencent is abandoning the XR field altogether, but rather adapting to the market needs. The shift towards software technology and content ecology has become evident with the growing demand for XR content.

As the market for XR continues to evolve, the industry is moving towards a focus on software development, interactivity and content itself. It is now more important for XR to have realistic and robust characters, storyline and user experiences instead of just focusing on the hardware development of head-mounted displays (HMDs).

While the dissolving of the XR hardware team highlights Tencent’s shift in focus, it does not mean that they are putting all their eggs in one basket. Tencent has made considerable investments in XR ventures like HUYA Inc. and e-commerce platform JD.com. This is evidence that Tencent is committed to XR technology, however, they will now put their efforts into more profitable areas, such as software development.

Furthermore, the shift to software technology coincides with the current trajectory of the gaming industry. The gaming industry has shifted from a focus on hardware development to software development, which provides gamers with sophisticated and engaging gaming experiences. With this transition, Tencent stands to gain a better position in the market by investing in software technology and creating unique XR content that conquers the market.

In conclusion, Tencent’s decision to adjust the relevant business teams and refocus on software technology and content ecology instead of hardware development is a strategic move for the company. While the XR hardware team dissolving may raise some concerns, the shift is in line with the evolution of the XR market and the gaming industry. The company remains committed to exploring the XR field and is realigning its efforts towards the more profitable areas in the industry.

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