San Francisco, Nov 10 (IANS): Mark Zuckerberg-run Meta is reportedly going to sell a new, lower-priced virtual reality (VR) headset in China.

Chinese videogame maker Tencent has agreed to start selling a new headset from Meta, cheaper than Quest 3, late next year, reports The Wall Street Journal.

“The agreement with Tencent offers “the US technology giant a major new market as it looks to boost tepid global demand for its niche gear,” the report mentioned.

Tencent will start selling the headset beginning late 2024, with the two reaching a deal after about a year of negotiations.

Despite leaving China 14 years ago, Meta’s return will be made possible through a preliminary deal with Tencent.

The news comes amid weakening demand for VR hardware.

Meta registered $34 billion in revenue in its third quarter, up 23 per cent from the same quarter last year.

However, the company is still burning cash with its Reality Labs division and Meta expects its operating losses there to increase “meaningfully” year-over-year.

Meta’s AR-VR division has lost close to $25 billion since the start of last year.

"We had a good quarter for our community and business. I’m proud of the work our teams have done to advance AI and mixed reality with the launch of Quest 3, Ray-Ban Meta smart glasses, and our AI studio,” said Zuckerberg.