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HTC may Drop out of the VR Headset Race in the Near Future

margin707 by margin707
August 27, 2017
in News
Reading Time: 3 mins read
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Rumors are circulating about HTC potentially getting rid of their VR hardware division altogether. That is quite a significant development, assuming it is true. Considering how the HTC Vive isn’t selling all that well it wouldn’t be entirely surprising if true. Bloomberg reports how the company is currently in talks with Google. Separating the VR business is one option, although it is also possible HTC may just leave the industry altogether. A very worrisome development, as more competition is direly needed to keep headsets priced competitively.

HTC has Some Tough Decision to Make

It is evident things aren’t going as they were originally expected. Virtual reality headsets aren’t selling all too well these days. This is especially true for companies targeting the high-end market, as both HTC and Oculus aren’t making much progress in this regard whatsoever Their combined sales are absolutely disappointing. Moreover, both companies were forced to slash headset prices by quite a margin. Consumers have taken a liking to Sony’s PlayStation VR offering, as well as Samsung’s Gear VR. Both of those projects are a lot cheaper and seemingly have more engaging content these days.

It is a bit unclear as to what HTC plans to do exactly, though. A report by Bloomberg indicates how the company may spin off its VR division in the near future. If that is the case, the company may attempt to sell this branch to a third party. That third party may very well be Google, a 2company actively building their DayDream VR headset as we speak. Additionally, it’s possible HTC will simply shut down its VR division if no suitable buyer can be found in the near future. There is a lot of speculation going on but very little information is being shared.

Moreover, it appears companies are looking well beyond virtual reality at this point. Augmented reality appears to be the new frontier waiting to be conquered. VR has always been considered to be a gimmick first and foremost. So far, the market sentiment seems to confirm those suspicions. One can’t deny VR has some appeal, but it’s not necessarily technology consumers are looking to experience at home. They will gladly visit a VR arcade to give this technology a try, though. A very troublesome development for companies such as HTC, which forces them to adapt or perish.

It is certainly true HTC has developed some technology other companies may be interested in. Especially their Viveport platform can be of great value to the right company moving forward. For now, all everyone can do is speculate regarding the future of this company and their VR branch, though. It is evident the VR market is a tough nut to crack and will remain to be for quite some time to come. Selling off the branch right now could be a smart business decision or a greatly missed opportunity. Time will tell what the future holds for HTC and their VIve headset.

If you liked this article make sure to follow us on twitter @thevrbase and subscribe to our newsletter to stay up to date with the latest VR trends and news.

Tags: HTCViveVR Headset
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