Where ByteDance Might Go Next in VR and AR

ByteDance’s acquisition of headset maker Pico Interactive, confirmed Monday, is undoubtedly one of the most intriguing acquisitions in the VR space since Facebook’s purchase of Oculus in 2014. Arriving hot on the heels of news around AR creator tools for TikTok, the deal suggests ByteDance aims to compete with Facebook not just in social media, but in VR, AR and the metaverse economy Facebook hopes to usher in.

But ByteDance will need more than decent VR headsets if it aims to really take on Facebook’s Oculus. For the growth of consumer VR in particular, ByteDance and Pico need to invest more heavily in content—something that might intensify ByteDance’s rivalry with Tencent in China.