The collaboration between LG and Meta to develop an extended reality (XR) device seemed promising at first, with plans to take on Apple’s Vision Pro headset. However, just three months after the joint venture was announced, reports surfaced that the partnership was on the verge of collapse.
Various Korean news outlets claimed that the LG-Meta partnership had broken down due to a lack of synergy between the companies. Despite these reports, LG denied terminating the deal, stating that they are still continuing the XR partnership with Meta but at a slower pace.
The products resulting from the collaboration were expected to combine Meta’s Horizon Worlds mixed reality platform with LG’s TV business’ content and service capabilities. There were also talks of integrating on-device AI from Meta’s large language models. However, the Seoul Economic Daily reported that the partnership is still ongoing but may not see the light of day until 2027.
Amidst the confusion surrounding the LG-Meta collaboration, reports emerged that LG might be pursuing a new XR headset partnership with Amazon. This potential partnership could leverage Amazon Prime’s extensive library of streaming content and vast subscriber base of 200 million.
The potential breakdown of the LG-Meta partnership comes at a time when Meta is facing financial challenges in its AR and VR businesses. Reports suggest that Reality Labs has been losing a billion dollars every month since June 2022. Despite these losses, Meta remains committed to scaling its ecosystem and product development efforts.
The VR/AR product industry as a whole is also experiencing challenges, with declining interest from consumers. This trend further complicates the prospects for companies like LG and Meta, who are trying to carve out a space in the competitive XR market.
The uncertainty surrounding the LG-Meta partnership and Meta’s financial struggles paint a bleak picture for the future of extended reality devices. The shifting dynamics in the industry and the challenges faced by key players like LG and Meta underscore the need for strategic partnerships and innovative solutions to stay afloat in the rapidly evolving XR landscape.
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