Benzinga - by Franca Quarneti, Benzinga Staff Writer.
LG Corporation (OTC:LGCOF) is reportedly pausing its partnership with Meta Platforms Inc (NASDAQ:META) to develop an extended reality (XR) device intended to compete with Apple Inc's (NASDAQ:AAPL) Vision Pro headset, just three months after the joint venture was announced.
Despite several Korean news outlets suggesting the partnership has completely fallen apart due to a lack of "synergy," LG denies this, stating: "LG Electronics continues the XR partnership with Meta forged in February but is controlling its pace," according to Korea JoongAng Daily (via The Verge).
Initially, the collaboration aimed to combine Meta's Horizon Worlds mixed reality platform with LG's TV content and services, with products expected to launch next year.
They were also exploring the integration of on-device AI using Meta's large language models. However, Seoul Economic Daily reports that while the collaboration continues, the release date is now likely pushed to 2027.
Amid these developments, some publications report that LG is shifting focus to a new XR headset partnership with Amazon, leveraging Amazon Prime's extensive streaming content and 200 million subscribers.
Meta's Reality Labs program, facing significant financial challenges, has reportedly lost a billion dollars every month since June 2022, according to GamesIndustry.biz. Despite this, Meta remains committed, expecting losses to "increase meaningfully" due to ongoing product development and ecosystem expansion efforts.
The broader VR/AR industry is also experiencing challenges. Sony Group Corp. (NYSE:SONY) has paused production of its PSVR 2 headset due to unsold inventory, and Apple's Vision Pro headset has seen sluggish sales, with some Apple stores selling as few as two units per week, reported by Bloomberg.
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