HTC might be planning to spin off virtual reality division

By David Curry January 19, 2016

htc virtual reality division spinoff rumor vive steam vr augmented ar — Image used with permission by copyright holder

HTC is in a bad state, after a run of unsuccessful mobile launches, its virtual reality division appears to be the shining light that may be able to revert the company’s nosedive.

How will it do that? Well, according to a new report from the Commercial Times (via Focus Taiwan), HTC might spin off the virtual reality division into a separate company, similar to eBay and PayPal or Hewlett Packard Enterprise and HP Inc. The new entity would be wholly owned by HTC and chairwoman Cher Wang at the start.

HTC’s stock in Taiwan rose 5 percent on the news, which cites unnamed sources.

It is apparently not the first time HTC has discussed the potential of a VR spinoff, according to the same report talks started in March 2015, shortly after the unveiling of the Vive VR at Mobile World Congress, but were stalled shortly afterwards. Ex-CEO Peter Chou may have started the talks, with Wang postponing it once she returned to the company.

A separate entity has plenty of benefits, it doesn’t have the weight of a failing company keeping it down, it can achieve better results on the stock market, and it can appeal to a new set of investors that weren’t too keen on the company’s entire portfolio.

It is a major risk for HTC however, as it will most likely lower the company’s valuation, let one of the most important assets loose, and might make investors sell assets. Take eBay’s split from PayPal, for instance: It gave the payments giant new areas to tackle and more opportunities for partnership, but eBay’s stock price has been halved since the split.

If the virtual reality division is a success however, HTC’s stock price might shoot up, as long as the company keeps a controlling stake in the new entity. Yahoo is in a similar situation, with some investors only interested in the performance of Alibaba and Yahoo Japan, two of Yahoo’s largest stakes valued at more than the company’s Web business.

It is a gamble, but it is one HTC might have to take to stay alive. The mobile industry is becoming more competitive by the month, and unlike Samsung, LG, and Sony, HTC doesn’t have much else to fall back on if its mobile division fails.

Editors' Recommendations

Topics

Former Digital Trends Contributor

David has been writing about technology for several years, following the latest trends and covering the largest events. He is…

Computing

This futuristic haptic vest should make virtual reality feel more realistic

actronika haptic vest skinetic vr more realistic virtual reality

Actronika, a startup company known for its HD haptics technology has a futuristic new product. Expected to be on display at the Consumer Electronics Show (CES) in January 2022 is Skinetic, a haptic vest that should make virtual reality experiences feel a lot more realistic.

Skinetic works much as you'd expect. The wearable vest makes VR feel more immersive by bringing life-like sensations and touch-like experiences to areas of the body like the chest when paired with a compatible headset. As reported by Business Wire, the technology "works with 20 patented vibrotactile voice-coil motors, capable of generating a wide range of vibrations that cover 100% of human vibrotactile perception."

Computing

Pimax’s 12K QLED VR headset wants to take virtual reality to the next level

Pimax's new 12k QLED VR headset.

It seems that virtual reality may be about to become even more real than ever before -- all thanks to a new VR headset. Pimax, a company that manufactures VR equipment, announced the upcoming release of a new 12K QLED VR headset that will feature technologies such as eye tracking, full-body tracking, and refresh rates of up to 200Hz. The headset, dubbed Pimax Reality 12K QLED, is part of the company's venture into the metaverse and a step toward bringing true realism to using VR.

During today's Pimax Frontier event, the company's representatives talked at length about the goals behind the product -- naturalness, self-awareness, and freedom. Pimax wants to bring these qualities into virtual reality and the metaverse, allowing people from all over the world to interact and explore virtual worlds together. While VR technology already allows for some of that to happen, Pimax wants to take it to the next level with its new invention -- the Reality 12K QLED VR headset.

Computing

The most common HTC Vive problems, and how to fix them

amazon prime day htc vive cosmos vr deal

Virtual reality (VC) headsets are all the rage these days. They offer a more immersive experience to the gaming world and the chance to move around -- if everything's working properly. HTC's latest Vive headsets, including the impressive Cosmos and new Vive Pro 2, are more stable than ever, but sometimes things can still go wrong.

From “headset not found” errors to pairing issues, we’ll cover common HTC Vive problems users face. Then, we’ll suggest possible fixes and provide step-by-step instructions on how to address the issues you might encounter with your HTC Vive.
Issues presented with an error code
(Error 108) Headset not found
There are a couple of ways this error can manifest, either as an error message (error 108) or blinking red light on the headset. This is usually the result of either a USB or a driver issue.