Due to Slow Growth in the XR Market... LG Electronics Delays Commercialization Timing
Dedicated Project Team Personnel Reallocation
"Focus on R&D"
LG Electronics has slowed down its extended reality (XR) business. The company decided to delay the commercialization timeline as the XR market's growth period is taking longer than expected.
According to industry sources on the 12th, LG Electronics recently postponed its XR commercialization plans, which were being pursued in collaboration with Meta, and decided to reassign related business personnel to other departments.
This comes four months after Meta CEO Mark Zuckerberg and LG Electronics CEO Cho Joo-wan met during Zuckerberg's visit to Korea in February to discuss collaboration directions for next-generation XR devices. At that time, the two companies had set the release of XR headsets for next year.
As a result of this move, personnel assigned to the XR business unit newly established under the HE Business Division during the organizational restructuring at the end of last year will be reassigned to research and development (R&D) and other business divisions.
LG Electronics explained, "Rather than immediately commercializing XR, the intention is to focus on improving the completeness of technology development." However, the XR-related R&D organization will remain intact, and research will continue.
The company also plans to carefully monitor market environment changes and maturity when reviewing XR-related collaboration with Meta. Nonetheless, cooperation with Meta will continue in various fields, including artificial intelligence (AI) such as LLAMA.
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Meanwhile, according to market research firm Counterpoint Research, the global XR headset market's annual shipments in 2023 decreased by 19% compared to the previous year.
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