HTC, unlike Google which owns Android, has been strengthened by its HTCVive hardware. However, the high cost of the Vive system is a challenge. To compete with the VR ecosystems built by companies like Google and Microsoft, HTC must develop its own platform. This explains why HTC sold its Pixel phone team for $1.1 billion and invested in VRChat, a user-generated content (UGC) virtual reality social platform.
By investing in VRChat, HTC is entering the VR social space, aiming to enhance its ecosystem. According to a Valve hardware report, HTCVive's market share dropped from 23% in May–August to 19% in September, while Oculus Rift increased from 9% to 18%. This shows the growing competition in the VR space. Relying on catchy headlines won’t be enough. To reverse its performance decline, HTC needs more innovation and highlights.
VRChat allows users to create avatars and virtual spaces, using visual tracking, 3D audio, and gesture interaction. It’s a key step for HTC to build a stronger presence in VR social networking. Other companies are also moving into this space—Microsoft acquired Altspace, and Facebook launched Facebook Spaces. The goal is to break the trend of isolated VR experiences and boost hardware usage through social interaction.
Experts believe VR social media offers a more immersive experience than traditional video or audio. Although it’s not yet ready for mass adoption, it’s a promising direction. HTC is also expanding its VR ecosystem by offering cloud-based services. In collaboration with Dalian TV Station and Beijing Network Cloud, HTC will launch the world’s first VR cloud service. Users can access content via a set-top box with a deposit and monthly fee, reducing the need for expensive PCs.
This move aligns with the growing trend of combining VR with cloud computing, as VR requires significant processing power. While cloud support is essential, local computing still plays a role. Experts suggest that future advancements in 5G and beyond will make full cloud integration possible.
In terms of pricing, both HTC Vive and Oculus Rift face pressure. HTC is trying to lower costs by bundling with GPUs. As VR cloud services become more widespread, the total cost of ownership could decrease significantly.
To fill the gap in VR device design, HTC has registered "ViveFocus" and is working on an all-in-one VR headset. This portable device doesn’t require a PC, making it more accessible. HTC is also focusing on mobile VR, planning to integrate it with its next flagship phone. This would allow HTC to offer a complete VR product line, catering to different user groups.
In the software domain, HTC is strengthening its position. While it relies on Google’s Daydream platform for now, its investment in VRChat signals a shift toward building its own software ecosystem. Experts emphasize that a portable, cross-platform software system is crucial for the future of VR.
HTC is actively recruiting developers and collaborating with universities to expand its software capabilities. As the VR industry evolves, platforms and standards will play a key role. Only those with strong technical foundations and user engagement will succeed in the long run.
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