Pico Reportedly Cancels Quest Competitor to Instead Take on Apple Vision Pro
According to a report from The Information, Pico Interactive, a subsidiary of ByteDance, is canceling the release of its next standalone headset to compete with Apple's Vision Pro mixed reality headset.
Pico Cancels Next VR Headset to Compete with Apple
Pico Interactive, a subsidiary of ByteDance, has reportedly decided to cancel the release of its next standalone headset, known as 'Pico 5'. According to The Information, the company is shifting its focus away from competing with Meta Quest and instead plans to develop a device that will rival Apple's Vision Pro mixed reality headset, which is priced at $3,500.
The decision to cancel Pico 5 is said to be a response to the lukewarm sales of Pico 4, the previous standalone headset released in Asia and Europe to compete with Meta Quest 2. It seems that Pico Interactive believes it will have a better chance of success by targeting the high-end market dominated by Apple.
While details about the new device, codenamed Swan, are scarce, the report suggests that it will feature cutting-edge technologies. However, it is unclear when the device will be released or what exactly these technologies will entail.
Restructuring and Layoffs at Pico
Last month, Pico experienced layoffs affecting hundreds of staff members in sales, videos, and platform operations. This move was seen as a restructuring effort to shift the company's focus more towards hardware and core technologies.
The decision to cancel Pico 5 and pivot towards developing a high-end competitor to Apple's Vision Pro headset seems to align with this restructuring strategy. However, neither Pico nor its parent company ByteDance have officially confirmed the report from The Information.
Competing with Meta and Samsung
Competing with Meta, particularly in the low-end market, is a challenging task. Meta's Quest 2 now sells for $250, and the upcoming Quest 3 is expected to be priced at $500. Meta's Reality Labs XR division operates at a significant loss, subsidized by advertising on Facebook and Instagram.
It is worth noting that even Samsung, in partnership with Google and Qualcomm, is rumored to be targeting the high-end market with its upcoming XR headset. This suggests that Pico's decision to steer away from competing directly with Meta and focus on the high-end market may be a strategic move to differentiate itself and increase its chances of success.
