To maintain a competitive edge over Apple and other emerging players in the increasingly competitive AR industry, Meta is reportedly considering a partnership with wearable tech company Magic Leap.
As reported by the Financial Times, both Meta and Magic Leap are currently in talks to finalise a multi-year agreement focused on intellectual property licensing and manufacturing.
While detail on the impending deal is brief, sources speculate that the partnership will likely not lead to the two companies developing a headset together. Rather, the partnership could allow Magic Leap to provide some of its optical tech to the Facebook parent company.
As part of the collaboration, Magic Leap may also aid in the manufacturing of Meta devices. This would enable Meta to increase domestic production of its VR headsets, which aligns with the growing demand for US companies to reduce their reliance on China.
An opportunity for growth
Speaking to Financial Times, Magic Leap says that partnerships were becoming a, “Significant line of business and growing opportunity for Magic Leap.”
Magic Leap CEO Peggy Johnson stated in a blog post last year that the startup had, “Received an incredible amount of interest from across the industry to license our IP and utilise our patented manufacturing process to produce optics for others seeking to launch their own mixed-reality technology.”
Meta is currently facing pressure from investors who expect tangible results for the investments made in pursuing CEO Mark Zuckerberg’s vision for the future of computing and the internet as a whole.
And although the company has revealed that it does not expect to profit from any of its metaverse projects for the next couple of years, it continues to spend billions annually on its Reality Labs division.
The metaverse company also held its Quest Gaming Showcase yesterday (June 1st) where it unveiled the Quest 3 headset as well as multiple new VR games that are launching on the platform this autumn.
Isa Muhammad is a writer and video game journalist covering many aspects of entertainment media including the film industry. He's steadily writing his way to the sharp end of journalism and enjoys staying informed. If he's not reading, playing video games or catching up on his favourite TV series, then he's probably writing about them.
