According to the Nihon Keizai Shimbun, HTC Chairman Wang Xuehong said in an interview on Tuesday that HTC is splitting its newly-started virtual reality (VR) business into an independent company, and the new subsidiary will be fully controlled by HTC.
On May 27th, at the Taipei Computer Show (Computex) next week, HTC will showcase its first VR game, Front Defense. This game allows players to be on the battlefield and use a variety of weapons to fight the enemy. HTC launched the $800 helmet Vive, which requires a PC to run. In order to develop a better experience for the helmet, HTC established the VR software studio, and now we can finally see the results of the studio.
According to market research firm SuperData Research, VR will become an industry with an annual output value of 40 billion US dollars by 2020. Most of the consumer's spending on VR hardware goes to HTC, but developers don't sell software through HTC. Instead, because HTC uses SteamVR technology from Valve Software, the technology must be embedded in the Steam program store. In order to get more revenue from the software field, HTC had to develop games and apps (applications) on its own. Showing the company's first VR game at the Taipei Computer Show is only the first step.
"Front Defense" is not the only work HTC is developing. Not long ago, HTC just set up the Vive X fund, ready to use $100 million to motivate developers to create VR production applications and tools.
HTC launched the first Android phone, but was later overtaken by Samsung, LG and other companies. HTC learned a lesson. When entering the VR market, the previous lessons became a guide for company decision-making. HTC uses the open SteamVR technology to produce VR helmets, and it faces a similar situation to Android because Valve requires hardware manufacturers to embed digital stores in helmets, and digital stores are not manufacturers. If HTC wants to avoid repeating the mistakes of Android, it may be helpful to enter the software field.
HTC is in trouble due to poor smartphone business performance, and it is betting on the future of VR business. HTC's first VR device, the HTC Vive helmet, has been shipping in April. However, some analysts doubt whether the burgeoning VR business can reverse HTC's decline.
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