LG Closes XR Product Division, Instead Focusing on R&D

LG Closes XR Product Division, Instead Focusing on R&D

  • 20.03.2025 12:06
  • roadtovr.com
  • Keywords: High, Low

LG has shut down its XR product division, shifting focus to long-term research and development. The company previously partnered with Meta but faced setbacks, leading to the disbandment of its XR efforts after poor reception of its 2016 headset and abandoned projects.

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Estimated market influence

LG

LG

Negativesentiment_dissatisfied
Analyst rating: Buy

The company is closing its XR product division, which could impact their presence in the AR/VR market.

Meta

Meta

Positivesentiment_satisfied
Analyst rating: Strong buy

Meta's partnership with LG has ended, but Meta continues to advance its own XR efforts.

Context

Analysis of LG's XR Division Closure and Market Implications

Key Facts and Data Points:

  • Date of Announcement: March 20, 2025
  • Decision by LG: Closed its XR product division, shifting focus to long-term R&D.
  • Previous Partnership:曾与Meta合作开发XR技术，但高层谈判未果。
  • Timeline of Changes:
    • XR product division disbanded late last year (prior to March 2025).
    • In May 2024, reports suggested the LG-Meta partnership was struggling.
    • June 2024: LG announced restructuring of its XR product division.
  • Historical Context:
    • Only one XR headset released (2016 smartphone-tethered device).
    • Project in 2017 abandoned quietly.

Market Trends and Business Impact:

  • Shift to R&D Focus: LG is prioritizing long-term research over commercialization, indicating a strategic pivot away from immediate product launches.
  • Impact on XR Industry: Reduces competition in the short term but may position LG as an R&D leader for future advancements.
  • Meta's Role: Meta remains a key player in XR, with Zuckerberg's 2023 visit to LG highlighting ongoing industry dynamics.

Competitive Dynamics:

  • Strategic Considerations: By focusing on R&D, LG aims to maintain technological edge without the risks of commercial failure.
  • Competitor Analysis: Companies like Meta and others will continue to dominate XR product development while LG focuses internally.

Long-Term Effects and Regulatory Impacts:

  • Potential Future Products: While no immediate products are expected, R&D could lead to breakthroughs in future years.
  • Regulatory Landscape: No direct mention of regulatory changes, but industry shifts may influence policy focus on emerging tech.

Conclusion:

LG's decision reflects a strategic recalibration in the XR sector, emphasizing innovation over market presence. While this move may impact short-term competition, it positions LG for potential long-term leadership through focused R&D efforts.