See how HTC "adds or subtracts" VR ecological chains?

In contrast to Google, which owns the Android operating system, HTC has been strengthened by its HTCVive hardware. However, the high cost of HTCVive remains a challenge. To compete with the established VR ecosystems built by companies like Google and Microsoft, HTC must develop its own ecosystem. This explains why HTC sold its Pixel mobile phone team for $1.1 billion and invested in VRChat, a user-generated content (UGC) virtual reality social platform. Investing in VRChat marks HTC’s entry into the VR social space. According to Valve's hardware report, HTCVive's market share dropped from 23% in May to August, to 19% in September, while Oculus Rift, which had only 9% in April, now holds 18%, nearly matching HTCVive. Relying on buzzwords alone won't ensure long-term success. To break nine consecutive quarters of declining performance, HTCVive—often seen as HTC's last hope—needs more compelling features and business highlights. VRChat is a UGC-based VR social platform that allows users to create avatars and custom virtual spaces. It supports multiplayer interactions through visual tracking, 3D audio, and gesture control. Graham Gaylor, CEO of VRChat, stated that becoming a key partner of HTC will help accelerate the realization of personalized VR experiences and drive VR social development. HTC isn’t the only one betting on VR social platforms. Microsoft recently acquired AltspaceVR, calling it a “killer” app, while Facebook launched its own VR social platform, Facebook Spaces. These moves aim to move VR beyond niche communities and improve hardware user conversion rates. According to Wang Yuxia, an expert at Cyber’s Think Tank, VR social media offers a more immersive and interactive experience than traditional video or audio. Although current limitations in technology hinder mass adoption, VR social networking represents a crucial future direction. Currently, VRChat is available on Viveport, HTC’s VR app store. From now until year-end, HTC will distribute 100% of Viveport’s profits to developers to expand its VR community and support ecosystem growth. Viveport already has over 26,000 registered developers, with Rikard Steiber stating that the platform will continue to deliver top-tier VR experiences and better monetization opportunities. In addition to software, HTC is also pushing into cloud-based VR. Partnering with Dalian TV Station and Beijing Network Cloud, HTC will launch the world’s first VR cloud service. Users can rent a set-top box for a deposit of 3,000 yuan and a monthly fee of 500 yuan to access unlimited VR content without needing a high-end PC. Wang Congqing, president of HTC China, emphasized that this approach eliminates the need for expensive PCs and complex setups. While the set-top box is still in testing, the concept of “VR on the cloud” could significantly reduce the total cost of ownership once commercialized. Wang Yuxia noted that combining VR with cloud computing is a growing trend, as VR requires substantial processing and storage power. Cloud infrastructure provides essential support, though local computing still plays a vital role. Ke Jing from Coocaa said that while cloud computing is expanding, full independence from local systems may require advancements like 5G or beyond. In terms of pricing, both HTCVive and Oculus Rift face pressure, with prices around $599 and $399 respectively. HTC has also offered bundles with high-end GPUs like the Nvidia GTX 1070. As VR cloud services become more widespread, user costs may shift from hardware to subscriptions, further lowering overall expenses. To address the “puzzle” of VR device form factors, HTC has registered “ViveFocus” with the EU and US patent offices, suggesting a collaboration with Google Daydream. The all-in-one VR headset, expected to launch this year, aims to balance portability and performance. Unlike traditional PC-connected headsets, it operates independently without cables or external devices. While HTC has Vive for PC and ViveFocus for all-in-one, it lacks a strong mobile VR offering. In contrast, Google’s Daydream and Samsung’s GearVR have already made their mark. With a new flagship phone on the horizon, HTC aims to complete its VR product line and cater to diverse consumer needs. HTC’s mobile VR strategy, led by President Zhang Jialin, will focus on integrating smartphones and VR in innovative ways. This approach aims to fill the final gap in the VR device landscape. In the realm of VR software, HTC faces challenges. While it has made progress, it still relies on Google’s Daydream platform. Investing in VRChat after selling its hardware team shows HTC’s growing emphasis on software. Experts stress that future VR software should be highly portable, running seamlessly across different systems and platforms. Wang Yuxia highlighted that the software layer is critical for connecting hardware to applications, serving as the core of the VR ecosystem. Li Jing added that building a portable software platform with standardized technical specifications is essential for the industry. Developers struggle with adapting content to different hardware and interaction methods, making unified standards crucial for broader accessibility. Recently, HTC held lectures at Tsinghua University and the Chinese Academy of Sciences, recruiting VR/AR software engineers. As competition intensifies, only those with strong software capabilities and user bases will survive. The future of VR depends on technological innovation, platform usability, and industry trends.

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