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TikTok parent ByteDance cancels next VR headset due to ‘poor’ sales of current model: Reports
Pico 5, which was to succeed Pico 4, the existing model, now stands scrapped.
ByteDance, the parent company of TikTok, has reportedly scrapped the development of Pico 5, the next virtual reality (VR) headset from Pico, a VR startup acquired by it in August 2021.
According to The Information, which broke the story, the tech giant took this decision due to ‘disappointing’ sales of Pico 4, the startup's current headset.
‘Pico’s growth not as rapid as expected'
As per the report, Zhou Hongwei, the CEO of Pico, informed employees during a meeting in November about impending job cuts from various departments (sales, video, and platform operation), noting how the ByteDance subsidiary's previous estimation of its market growth was ‘too optimistic.’
“The VR industry is is still in its early stages…our actual growth did not progress as rapidly as we had expected," the CEO was quoted as saying.
Also, though he did not reveal exactly how many employees would be let go, sources stated that ‘hundreds of jobs’ would be eliminated.
The Information's report, meanwhile, further noted that post the restructuring, the Pico harware team would focus on creating a new technology, while the software team would either be downsized, or merged into ByteDance's broader product development team.
‘Pico functioning normally’
ByteDance, however, refuted reports of shutting down the virtual reality firm.
“The report that we are shutting down Pico is not true. Pico is under normal operation and the company will continue to invest in the extended reality (XR) business over the long term,” it said in a statement to Reuters.
In the first quarter of 2021, Pico was the third-largest VR headset maker globally, with its shipments rising nearly 45% year-on-year, as per the International Data Corporation (IDC).
