The Decline of XR and the Challenges of Large-scale AI Applications

Vincent Hsu

Vincent Hsu

Oct 06, 20234 min read


The Decline of XR and the Challenges of Large-scale AI Applications

In recent news, it has been reported that Tencent's XR (Extended Reality) team has been disbanded, signaling a significant setback for the XR industry. This comes as PICO, another major player in the XR market, undergoes personnel optimization. The XR industry seems to be facing a harsh winter, but what are the reasons behind this decline? On a separate note, why haven't we seen any breakthrough applications of large-scale AI models, despite the hype surrounding them? In this article, we will explore these two topics and uncover the common points that connect them.

The XR industry's decline can be attributed to several factors. Firstly, there is a lack of consumer demand for XR technology. While XR has shown promise in various industries such as gaming and entertainment, it has failed to capture the attention of the mainstream market. This lack of demand has led to a stagnation in the development and innovation of XR applications.

Additionally, the high costs associated with XR technology have hindered its widespread adoption. From expensive headsets to the need for powerful computing systems, the barriers to entry for XR are substantial. As a result, many companies have struggled to justify the investment in XR, leading to a decline in overall interest and support.

Furthermore, the COVID-19 pandemic has had a significant impact on the XR industry. With social distancing measures and restrictions on public gatherings, the demand for XR experiences has decreased significantly. Events and conferences, which were once prime opportunities for XR applications, have been canceled or moved online, further dampening the prospects of the XR market.

Interestingly, the challenges faced by the XR industry mirror those encountered in the development of large-scale AI applications. Despite the advancements in AI technology, we have yet to witness the emergence of killer applications that fully utilize the potential of large-scale AI models like ChatGPT.

One reason for this is the rush to find replacements for human tasks instead of focusing on strategic and tactical planning. Instead of anxiously seeking ways to apply AI to various aspects of our lives, it may be more beneficial to take a step back and develop a deeper understanding of the underlying technology. By doing so, we can better identify opportunities and cultivate unique perspectives that can lead to breakthrough applications.

Another obstacle in the path of large-scale AI applications is the overwhelming amount of information available. It is easy to get lost in the sea of data, but by maintaining a clear focus on the fundamental principles of AI and staying informed about the latest advancements, we can navigate through the noise and identify the most promising avenues for development.

In conclusion, the decline of the XR industry and the challenges faced by large-scale AI applications share common points. Both industries require a careful balance between strategic planning and tactical execution. Additionally, a deep understanding of the underlying technology and a keen observation of the market trends are crucial for success.

To navigate these challenges effectively, here are three actionable pieces of advice:

  • 1. Focus on creating demand: Rather than solely relying on the technology itself, invest in market research and consumer insights to identify areas where XR or AI applications can truly add value. By understanding the needs and preferences of the target audience, you can develop solutions that resonate with them.
  • 2. Foster interdisciplinary collaborations: XR and AI are multidisciplinary fields that require expertise from various domains. Encourage collaborations between technologists, designers, and industry experts to leverage diverse perspectives and create innovative solutions. This cross-pollination of ideas can lead to breakthrough applications that address real-world challenges.
  • 3. Embrace iterative development: Both XR and AI technologies are rapidly evolving. Instead of aiming for perfection from the start, embrace an iterative development approach. Continuously gather user feedback, iterate on your solutions, and adapt to changing market dynamics. This agile mindset will ensure that your XR or AI applications remain relevant and competitive.

By incorporating these actionable advice into your XR or AI endeavors, you can navigate the challenges and contribute to the growth and success of these industries. Despite the current setbacks, the future holds immense potential for XR and large-scale AI applications, and by staying informed, adaptable, and innovative, we can shape the trajectory of these technologies.


  1. "【XR大撤退】专题:腾讯XR团队全线解散,PICO进行人员优化,XR行业“全面入冬”? | 巴比特", (Glasp)
  2. "除了ChatGPT,大模型杀手级应用还没有跑出来的原因是什么?", (Glasp)

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