LG Electronics·Meta End "XR Partnership" After Two Months
LG Electronics·Meta End "XR Partnership" After Two Months
  • BK Min
  • 승인 2024.05.20 10:09
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Two months after its formalization, LG Electronics' decision to terminate its extended reality (XR) partnership with Meta has sent shockwaves through the XR market. The partnership, initiated with a visit from Meta CEO Mark Zuckerberg to LG Electronics CEO Jo Joo-wan in late February, was expected to be a game-changer. However, the two companies have now chosen to part ways, leaving the industry in anticipation of their next moves.

Despite the unexpected end to the LG-Meta partnership, LG Electronics remains committed to the XR market. The company is set to launch its own XR device next year, as per its original schedule. However, LG's future in the XR market is still uncertain, as it needs a new partner for the operating system (OS) and software.

The termination of the LG-Meta partnership was not without its share of disagreements. According to a source from the electronics industry, the discussions about the XR device were marred by differences, leading LG to be the first to request the partnership's termination. The lack of significant synergy was a key factor in this decision. LG had hoped to boost its product competitiveness by integrating Meta's XR device OS, Horizon, and its extensive range of content. On the other hand, Meta had seen the partnership as an opportunity to leverage LG's strong market presence and extensive sales network to dominate the XR OS and content market.

During the March shareholders' meeting, Jo Joo-wan hinted at potential new partnerships, stating that a global company comparable to Meta was interested in collaborating with LG. Industry sources consider Amazon a leading candidate due to its vast array of engaging content through Amazon Prime, which boasts over 200 million subscribers. Since Amazon lacks an XR-specific OS, there is speculation that Google's Android could be used.

Some analysts believe LG Electronics might opt for independent development instead of seeking a new partnership. Owning the OS and content is crucial for gathering consumer usage data and enhancing future product development. LG already possesses its OS for its TV lineup.

The race to dominate the XR market, which is considered the "next smartphone," is intensifying. Sony is partnering with Siemens to release a head-mounted display later this year, while Samsung Electronics is collaborating with Google and Qualcomm for a release next year. Meta is also exploring potential partnerships with Chinese companies like Tencent. According to market research firm IDC, the XR device market is expected to grow from $18.2 billion this year to $35.7 billion by 2026.

The link to the Korean version of this article is as below.

LG전자·메타, XR 협업 종료…"각자의 길로"




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