LG Exits VR Market to Focus On... HVAC
David Heaney
Following up on yesterday's item about the declining VR market, I couldn't help but call out this related item specifically:
LG has ceased its XR product commercialization efforts, it confirmed, though will still continue long-term R&D.
The news of LG ending its XR product plans was first reported by South Korean news outlet The Bell, citing an industry source. In a statement given to the outlet, LG confirmed the claim but clarified that it will still continue long-term XR research and development.
According to The Bell, LG took the decision because it believes the XR market isn't growing as quickly as it expected, and it wants to focus more on heating, ventilation, air conditioning (HVAC) and robotics.
How bad is the state of the VR market at the moment? Massive consumer electronics brands are bailing to focus on... heating, ventilation, and air conditioning. Perhaps Apple should ditch the 'Vision Pro' for the 'HVAC Pro'?
The saddest part of that joke is that an Apple air conditioning system might actually sell more units. Though it would probably also cost $10k. Not cool.
Anyway, the LG news isn't exactly a surprise given their history in the space:
LG had a very short history in the VR market. In 2016 it released a compact smartphone-tethered headset for viewing 360° videos, to terrible reviews, and in 2017 it showed off a PC-tethered SteamVR headset prototype that it didn't end up shipping.
Yet despite all of this, they somehow landed a partnership with Meta – again, not just the leader in the space, the only real player in the space at the moment – to supposedly build future Quest Pro headsets.
In early 2024 Meta and LG officially confirmed an XR "strategic collaboration" that would include "next-gen XR device development", following further reports of a 2025 high-end headset. But just a few months later LG confirmed it was "controlling its pace" amid multiple reports that the headset had either been delayed to 2027 or canceled entirely.
That may or may not also be related to the fact that the first Quest Pro – not made with LG – was a dud for Meta. And they quickly shifted to focus on the lower price points, which was clearly what they should have been doing, versus trying to compete with the Vision Pro, which wasn't really worth competing with – at least for now.
Anyway, this is all about as big of a bellyflop for a company in one space as I can recall. Everything LG touched in VR turned to dust – and most of it was vaporware.
M.G. Siegler
M.G. Siegler
M.G. Siegler