HTC, other VR firms eye China as the epicenter for innovation in VR tech

The consumer electronics company is betting on Vive and, taking a broader perspective, on the success of VR.

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HTC has opened a new office in China dedicated to its Vive VR headset, according to games analyst ZhugeEX.

Known primarily for manufacturing phones, HTC wants to push even further into the VR market. Opening an office to penetrate the Chinese market is only one step. Partnering with digital distribution powerhouse Valve to create its Vive headset is another. The third is taking point on Virtual Reality Venture Capital Alliance, or VRVCA, a consortium of 30 venture capital firms looking to invest in VR tech.

"This is the first time such renowned VCs are joining hands at this scale to drive the future of a new industry, rather than competing to find the best deals for themselves," said HTC regional chief Alvin Graylin in a statement (via CNET).

HTC is getting more attention than its consortium partners—and competitors such as Oculus—due to its transparency. We know Facebook purchased Oculus for $2 billion in 2014, but we don't know how Oculus spent that money. HTC is throwing money around, too; it's just being up front about it, such as pledging $100 million to help fund development of VR software.

That investment aligns with HTC and its constituents hope to accomplish through VRVA. "We believe that VR is a transformative technology that will revolutionize entire industries, one that will leave a lasting impact for many future generations to come," per the conglomerate's mission statement. In order to achieve that dream, we are working tirelessly to ensure that the VR startups today get the resources they need, so that they can grow into the industry titans of tomorrow."

In its quest to remain one of those titans, HTC likely opened its office in China to get in on the ground floor of the country's VR industry. A report published by Bloomberg states that China houses 200 startups working in virtual reality. Those and other small companies are seeds planted by President Xi Jinping, who hopes to give China's economy an adrenaline shot by opening over 1,600 incubators for tech startups.

Naturally, some companies are attempting to create cheaper VR headsets to lower the cost of entry into the medium. But a problem remains: users need a beefy PC in conjunction with a capable headset to enter virtual worlds. That's exactly why Chinese companies like Dloldo (pronounced "dodo") are taking lateral steps and designing alternative portals such as a peripheral that resembles eyeglasses, offering more comfort and a smaller form factor (per TIME).

A promotional shot for Dloldo's VR glasses.

Chinese companies like Alibaba Group Holding Ltd., Tencent Holdings Ltd., and Baidu Inc. are jumping aboard the VR bandwagon by helping to fund startup companies rooted in VR software and hardware. During the first quarter of 2016, those and other investors poured approximately $1.1 billion into VR—all in a bid to see who will be at the forefront of innovation.

Canalys analyst Jason Low said that "There isn’t a clear leader for VR content in China. Local content providers, game publishers and service providers are racing to exercise their influence on the development of VR beyond hardware."

Sources: CNET, Time, Bloomberg, ZhugeEX (via Twitter)

Long Reads Editor

David L. Craddock writes fiction, nonfiction, and grocery lists. He is the author of the Stay Awhile and Listen series, and the Gairden Chronicles series of fantasy novels for young adults. Outside of writing, he enjoys playing Mario, Zelda, and Dark Souls games, and will be happy to discuss at length the myriad reasons why Dark Souls 2 is the best in the series. Follow him online at davidlcraddock.com and @davidlcraddock.

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