HTC’s stock tanks as VR spinoff rumors swirl

HTC has had a difficult couple of years. The company hasn’t been able to emulate the incredible reception of its One M7 smartphone, and every iteration of the device seems to have only gotten worse. Just as the company seemed to be going under after the extremely unsuccessful launch of the ONE M9, it was revealed that Taiwanese firm was partnering with Valve, a rockstar in the world of computer games, to bring virtual reality to the masses.

The company’s Vive headset launched very recently, and has already sold a significant number more devices then was initially anticipated, especially with its high price of $800. Even with the relatively well received launch of HTC’s 10 flagship, people just don’t seem to care about the manufacturer as a producer of smartphones any longer. With the immensely popular launch of its Vive headset, it would not be surprising to see the company transition to solely producing VR content. With that in mind, rumors have started swirling stating that the company is planning on breaking its VR venture into a wholly separate firm altogether.

HTC has confirmed the development of a new spinoff company, though it has not mentioned specifically what the intentions of this company will be besides the development of “new and innovative technologies”. Those two adjectives pretty much pin VR down to a point, so we would be pretty surprised if we saw anything BUT new Vive technologies coming out of the spinoff. The new venture is owned and run solely by Cher Wang, HTC’s current CEO, and lists its headquarters as the 8th floor of HTC’s own. The announcement of the new venture has caused HTC’s stock to drop 10%, the highest possible amount for the Taiwanese stock exchange. Investors seem to be worried that the new venture will rake in Vive profits while the main company continues to fail, and with the recent disaster of the HTC ONE A9 and well-reviewed but limited launch of the HTC 10, this is quite a probable outcome.

HTC has also pledged 100 million dollars through a venture called Vive X, which aims to incubate startups looking to develop for the Vive. $100 million is no small amount, especially for a company that has been seeing less and less profits over the last couple of years. The cash injection shows just how committed the Taiwanese firm is to VR technology, and setting up a completely new company might be exactly what the firm needs to get back on its feet.

What do you think about the new venture? Does HTC need a new name to make the Vive a success? Let us know.

via: Android Authority

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