Meta will reportedly partner with Tencent to launch Quest 2 in China, as per reports from the Chinese website 36 Krypton.

The companies have reportedly been collaborating for the past four months to localize and adapt their software offering to the Chinese market, with the news coming on the back of Tencent abandoning its plans to develop its own VR headset and layoffs to its XR division. The partnership could also involve Tencent actively handling the Quest VR sales in China, although Chinese government regulations could impose restrictions on the usage of the headset. 

Bytedance subsidiary Pico Interactive currently dominates the VR market in China, although the reported launch of the Quest 2 could see significant competition entering the market. The news would come as an additional blow to Pico Interactive, as they announced layoffs and delays in the launch of their PICO 4 Pro headset, alongside rumors of losses on its headsets in February 2023 .