Tencent has reportedly abandoned plans to launch its own virtual reality hardware.

According to Reuters The move comes as the world’s biggest video game publisher by revenue plans to cut jobs at its augmented reality division, which was created in June 2022 and employs about 300 people, sources said.

The report claims that Tencent has developed the concept of a ring-shaped handheld game controller for its VR hardware.

However, one source said the company decided to change its strategy due to the significant investment required to compete in the market and the fact that it does not expect to turn a profit until 2027.

Another source claims that Tencent failed to produce a decent number of promising games and other applications.

While Tencent denied it was disbanding its augmented reality unit, it told Reuters it was making some personnel changes following a shift in hardware development plans.

Sony will be launched PlayStation VR2 February 22. Priced at $549.99 / €599.99 / £529.99, it includes the PS VR2 headset, Sense controllers and stereo headphones. The Composition of PS VR2 launch windows will consist of 37 games.

Bloomberg sources recently claimed that Sony had has halved its PS VR2 launch predictions after a disappointing number of pre-orders.

They claimed that Sony’s shipment forecasts were cut from two million to one million units this quarter. In response, Sony issued a statement claiming that it “did not cut Gaming console Production numbers of VR2″.