ByteDance, the parent company of the popular social media platform TikTok, has denied rumors of shutting down Pico, a Chinese virtual reality (VR) headset manufacturer. Despite challenges, ByteDance remains committed to Pico’s VR business and plans to invest in product technology and extended reality (XR) initiatives.
Since being acquired by ByteDance in August 2021, Pico holds over 58% market share for VR headsets in China. Pico’s headsets have gained traction domestically and internationally, competing with Meta’s Quest headsets.
However, Pico has faced difficulties, with reports stating that nearly half of its employees have left the company, including senior executives. To streamline operations, Pico reduced its workforce by more than 200 employees in February.
While excitement around ByteDance’s acquisition of Pico and the metaverse has decreased, ByteDance remains dedicated to the VR industry and XR technologies, encompassing VR and other immersive experiences.
ByteDance is actively investing in software developers and expanding content for Pico’s headsets to enhance the user experience and attract more users.
Speculation arose when a Chinese research firm suggested that ByteDance was considering exiting the VR business. However, ByteDance quickly refuted these claims, stating that Pico is operating normally and it is committed to advancing the VR industry.
ByteDance acquired Pico strategically to enter the growing VR market and challenge Meta’s Oculus Quest headsets. Pico’s shipments have been increasing while Meta’s have declined, indicating the demand for Pico’s products.
Despite challenges, ByteDance remains committed to the VR business, investing in product technology to drive innovation and establish its presence in the industry.
With the popularity of TikTok, ByteDance has an advantage in content creation and distribution, which can contribute to Pico’s growth and establish ByteDance as a strong player in the VR market.
As ByteDance evaluates Pico’s strategy, reports suggest they are exploring new approaches for long-term success. ByteDance’s determination to maintain normal operations and invest in product technology demonstrates their resolve to overcome challenges and solidify Pico’s position in the competitive VR market.
In conclusion, ByteDance has reaffirmed its commitment to Pico’s VR business, dismissing closure rumors. With a significant market share, ongoing investment in product technology, and ambition to compete with Meta, ByteDance is well positioned to shape the future of virtual reality. ByteDance’s dedication ensures that Pico will remain a key player in the immersive technology landscape as the metaverse evolves.