In the fast-changing world of virtual reality (VR), Pico, a prominent VR company owned by ByteDance, is facing challenges. As the industry deals with obstacles and major players exit, Pico must navigate a complex landscape shaped by internal factions, market dynamics, and new competitors.
Within Pico, a clash between two groups, the “Pico group” and the “Byte group,” has created tension and misunderstandings. Employees aligned with the “Pico group” express concerns about decision-making by their counterparts from the “Byte group,” worsening internal divisions. This clash, along with a loss of confidence in upper management due to the rushed release of the Pico 4 headset, has led to employees leaving and destabilizing the company.
Pico’s challenges are not unique, as the VR industry in China experiences a downturn with major players like Alibaba Group’s Damo Academy and Kuaishou’s VR panoramic video business quietly fading away. These setbacks have cast a shadow over the industry, requiring resilience and adaptability from companies and their partners.
To adapt to the changing landscape, Pico has shifted its content focus from games to live video. This change has been influenced by senior executives from the “Byte group,” further complicating the power dynamics within the company. The clash between Pico’s preference for speed and ByteDance’s emphasis on safety has added complexity to decision-making processes.
On top of these challenges, Pico now faces competition from tech giant Apple, which has recently entered the mixed reality space with its Vision Pro headset. This entry introduces a new factor into the VR industry, potentially changing market dynamics and increasing competition.
Looking beyond VR, augmented reality (AR) is expected to surpass VR in the near future. With the rise of AR technology, Pico and other VR companies must adapt to remain relevant and competitive. The industry and its partners must endure and adapt to shifting technology and consumer preferences.
To address the complexities that have arisen post-acquisition, Pico must improve communication and understanding between the factions. By finding common ground and leveraging the strengths of each group, Pico can navigate challenges and become stronger.
Despite the current downturn in the VR industry, there is reason for optimism for Pico and other companies. By strategically investing in content, marketing, channels, and hardware, Pico can position itself to capitalize on future growth opportunities. This includes reevaluating its product development and release strategies to rebuild trust among employees and customers.
As Pico continues in the ever-changing VR industry, the company must adapt to the changing landscape, overcome internal divisions, and embrace emerging technologies. By doing so, Pico can pave the way for its own success and contribute to the advancement of the VR industry as a whole.