LG Electronics is scaling back its extended reality (XR) ambitions, shuttering its XR development office just a year after its establishment as market adoption proves slower than anticipated.
The Korean tech giant has shifted its strategic priorities away from XR—which encompasses virtual, augmented and mixed reality technologies—toward what it considers more promising growth areas including heating, ventilation and air conditioning (HVAC) systems and robotics, industry sources revealed.
LG previously identified XR as a key growth driver, even meeting with Meta CEO Mark Zuckerberg in March 2023 to discuss strategic partnerships spanning devices, platforms and content. The companies had planned comprehensive ecosystem collaboration, leading LG to establish a dedicated XR unit within its Home Entertainment division.
However, industry sentiment cooled after Apple’s Vision Pro headset underperformed expectations amid insufficient software and content support. Sources familiar with the matter indicate LG and Meta encountered strategic differences during their collaboration.
While closing its dedicated development office, LG clarified that XR research continues within its CTO division. “We’re postponing commercialization plans to focus on research and development,” an LG representative said.
Meanwhile, rival Samsung Electronics maintains its XR momentum, preparing to launch its “Infinite” XR device developed with Google and Qualcomm later this year. The three companies have created a platform called “Android XR” featuring multimodal AI interaction capabilities.
