HTC Vive is spinning off its parent company following the success of its first virtual reality headset. The new subsidiary is now named HTC Vive Tech Corporation and will allow the VR division to operate independently of the Taiwanese company. Although the big move was rumored HTC confirmed the reorganization on June 29, Wednesday.
HTC verified the creation of the new company to The Verge. It stated that it will team up with other companies to build a global VR ecosystem.
It is important to note that Vive is still under the umbrella company HTC and there will not be many short-term changes. However, it provides extra protection if the parent company goes out of business, according to Engadget.
HTC and Vive made other announcements at the Mobile World Congress in Shanghai. For example, Vive is launching a "Vive Port" app.
It is also rolling out a VR Venture Capital Alliance (VRVCA) to boost long-term growth within the VR industry through investments. VRVCA claims it has $10 billion for the next big thing in the world of virtual reality.
A total of 27 companies will join HTC Vive's VRVCA. Alvin Wang Graylin is China Regional President of VR at HTC and head of the alliance.
This is the largest VR venture HTC has led, while in April the company unveiled a $100 million Vive X accelerator program for VR startups.
The $10 billion might not be spent directly on VR investments. It is instead the total capital the alliance members could pay out on such business ventures.
VRVCA will meet every two months in San Francisco and Beijing. They will hear the cases of companies that need funds to turn their ideas into products. It seems that the Alliance wants to increase its market share in the virtual, augmented, and mixed reality spaces.
In related news, Diageo shared that it has started to develop a VR experience that shows how dangerous drunk driving is, according to CNET. The company produces world-famous alcoholic drink brands including Johnnie Walker whiskey and Smirnoff vodka.
James Thompson is Chief Marketing and Innovation Officer of Diageo North America. He said the VR technology will focus on personal responsibility by making people virtual passengers in a car driven by a drunk driver.
The company tentatively plans to launch its VR project in fall 2016.
Here's a review of HTC Vive: