Meta drags Qualcomm into the Metaverse for the foreseeable future

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Mark Zuckerberg is enlisting some help to slim him down metavertical vision closer to reality.

On Friday, Meta and Qualcomm announce They’ve partnered to design custom chips for the Meta virtual reality headset that they believe can promote, “a new era of spatial computing.” The multi-year agreement between the two companies will see the Meta Quest headphones powered by Qualcomm’s Snapdragon technology. The agreement means that Meta, unlike other competitors such as Google and Apple, will not ship devices with its own processor for the foreseeable future.

“As we continue to build more advanced capabilities and experiences for virtual and augmented reality, it becomes important to build specialized technologies to power future VR headsets and other devices,” Meta CEO Mark Zuckerberg said in a statement. “Unlike mobile phones, building VR brings new and multidimensional challenges in spatial computing, cost, and form factor. These chipsets will help us continue to push virtual reality to its limits and deliver great experiences.”

Meta and Qualcomm aren’t exactly strangers. The Quest 2 headset currently uses Qualcomm’s Snapdragon XR2 chipset, and the two have worked together for seven years. Friday’s deal, according to Qualcomm, “reinforces a mutual commitment to deliver multiple generations of premium devices and experiences powered by dedicated VR platforms in the coming years.”

Whatever you might think about Zuckerberg’s vision of a legless, cartoonish workforce, it’s clear that consumer interest in headphones is on the rise. Global shipments of VR headsets increased 241.6% in the first quarter compared to the same period last year to me IDC data. On the consumer front, Meta Quest products are the undisputed kings. Meta headphones captured 90% of the total market, thanks in part to their claims strategy Relying on more profitable segments of its business to artificially lower prices for headphones…and drive away competition in the process. However, all that investment is starting to pile up. company It said It lost $2.81 billion of just $452 million in revenue from Reality Labs’ virtual reality division during the second quarter.

“Meta continues to pour dollars into developing the metaverse but its strategy of promoting low-cost devices at the expense of profitability is not sustainable in the long term,” IDC Research Director Jitch O’Brani said in a statement.

Meta resists the direction of the inner chips

Meta’s decision to continue partnering with Qualcomm differs slightly from other Big Tech competitors such as Apple and Google, which are increasingly choosing to build their own chips for a variety of products. Google has already shipped phones with in-house strung chips And the It said It plans to release a range of Chromebooks with a dedicated processor early next year. Meanwhile, Apple continues to develop and expand its dedicated M1 and M2 chips laptops And the IPAD.

On the VR side, Apple has reportedly chosen to do this on its own as well. According to June Bloomberg, ReportApple’s first mixed reality headset, which can cost Up to $3,000, it could come with an Apple M2 processor and 16 GB of RAM. Then again, Bloomberg too Discover A patent was filed this week for a “Reality Processor” which suggests that Apple could eventually work on its own chipset dedicated to its headphones. Those are a lot of the things that could be and what, but given Apple’s trajectory, it looks like their headphones, which may be the only headphone capable of truly competing with the Meta in the consumer market, will likely ship with an internal chip of some sort.

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