ByteDance's Pico shifts VR strategy

By XIAO Fang

ByteDance's foray into VR has yet to replicate the success of platforms like Tiktok and Toutiao.

In August 2021, ByteDance acquired Pico and, a year later, launched the consumer-grade VR product Pico 4 Pro, reaching markets in Europe and Asia. However, reports indicate Pico has halved its sales target for the year.

The Pico app store now boasts over 530 applications, but in sheer quantity, Pico still lags behind many overseas counterparts, and Pico's VR device fell short of expectations. Most domestic AR/VR device companies face similar challenges. In H1 2023, China's AR/VR headset shipments dropped 44 percent, with Pico holding 58.7 percent of the market.

Developing a hit AR/VR app is challenging, especially given the industry's early stage and profitability hurdles for developers. Of Pico's 530 apps, only a fifth are from domestic sources, but the company is pursuing closer ties with developers.

In building its content ecosystem, Pico prioritizes user-centered development and the real challenge lies in user retention and activity. Success probably hinges on ByteDance's patience with the venture.