HTC Corp announced on Sunday its partnership with game developer Valve aimed at delivering a virtual reality device by the end of the year.
During the Mobile World Congress in Barcelona, the two companies announced their plan to compete in the high-technology market of the future and challenge companies like Google, Facebook, Sony and Samsung among others.
The Vive, equipped with two screens for each eye, is expected to provide more freedom to its users compared to the devices made by Samsung and Google as it will allow the person wearing the Vive to walk around within a certain area and interact with virtual objects. However, this feature does require extra hardware to operate.
HTC is looking to diversify its product range, following an 8% decline in revenue in 2014, amid increased competition across the smartphone market by both high-end devices like the iPhone 6 and low-cost Chinese merchandise.
Equipped with more then 70 sensors, including a gyroscope, an accelerometer and a laser position sensor, the Vive provides a 360-degree high-definition view. More importantly the devices frame rate is above 60, avoiding criticism from many developer who believe a lower rate can cause nausea.
Gamers are expected to be the first to purchase the device, which is projected to hit the market during the holiday season, and drive overall sales. Valve is one of the leaders of the gaming community and its Steam platform, an online marketplace for games, is widely known for its aggressive marketing campaigns based on discounts.
However, the Vive is also expected to allow its users to shop online, meet with friends and virtually travel around the globe. Initially the device will be only compatible with personal computers and consoles with the plan to extend its reach to smartphones and other mobile devices.
“It is rare that a company has an opportunity to forever transform the ways in which people interact with the world and communicate with each other,” said HTCs Chief Executive Peter Chou.
Additionally, HTC unveiled its latest smartphone during the event. Dubbed One M9, the device features an upgraded camera compared to its predecessor and its aimed at expanding the companys market share. According to researcher IDC, HTC accounted for only 1.6% of all smartphone sales during the past year.
HTC Corp gained 3.73% on Monday and closed at TWD 153.00 in Taiwan, marking a one-year increase of 12.50%. The company is valued at TWD 127.75 billion.
According to the Financial Times, the 19 analysts offering 12-month price targets for HTC Corp have a median target of TWD 143.00, with a high estimate of TWD 200.00 and a low estimate of TWD 97.00. The median estimate represents a 6.54 % decrease from the last closing price.
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