LG Electronics and Meta’s collaborative efforts in developing an extended reality (XR) device have hit a roadblock, with reports surfacing that LG is pausing this partnership just months after it was announced. Despite LG’s denial of a complete termination of the deal, Korean news outlets suggest that the lack of synergy between the two companies has led to a breakdown in the partnership.
Collaboration Details
Initially, the joint venture aimed to combine Meta’s Horizon Worlds mixed reality platform with LG’s TV business content and service capabilities. The partnership also explored the potential integration of on-device AI, leveraging Meta’s large language models. However, the status of the project has become ambiguous, with conflicting reports on whether the collaboration is still ongoing but delayed until 2027 or if LG is shifting its focus towards a new XR headset partnership with Amazon.
The potential dissolution of the LG-Meta partnership comes during a challenging time for Meta’s AR and VR businesses. Reports indicate that Meta’s Reality Labs has been incurring significant losses, with a billion dollars being burned every month since June 2022. Despite these financial setbacks, Meta remains committed to its product development efforts and ecosystem scaling, anticipating further losses in the coming years.
In the broader VR/AR product industry, consumer interest has been declining, adding to the challenges faced by companies like Meta and LG. As the market grapples with changing consumer preferences and technological advancements, partnerships and collaborations will be crucial in navigating the evolving landscape of extended reality devices.
The uncertain future of the LG-Meta partnership underscores the complexities and challenges inherent in the development of XR devices. With financial pressures and shifting market dynamics, both companies will need to reassess their strategies and partnerships to remain competitive in the rapidly evolving AR and VR industry.
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