HTC to spin off its nascent VR business into a separate company

The global virtual reality (VR) market is expected to begin gaining momentum soon as Samsung Electronics, Oculus and HTC are ready to compete with each other in the sector, according to industry sources.

You must have heard of rumors that HTC is actually planning to spin out its VR business into a standalone company.

Some have speculated that this would be the flawless opportunity for Valve, HTC’s partner with the Vive, to reveal Half-Life 3 (or a new Portal title), a game the developer hasn’t discussed in years, but is widely assumed to be developing in secret, possibly for the HTC Vive. However, reports surfaced that since the HTC Vive will be placed as a top-tier VR device, it might also come with a big price tag.

Investors have appeared optimistic toward HTC’s development, anticipating that its smart devices, VR and wearable products will help generate strong turnover in the first half of the year.

The Taiwan-based company has issued a statement today denying this report from Taiwanese local media outlets.

Market analysts said that if the report of the creation of a VR company by HTC turns out to be true, the plan would show the smartphone vendor’s ambitions to concentrate its efforts on the new business and would give the smartphone supplier a chance to take the lead over its peers in the VR arena. Unlike the Oculus Rift, the Vive can be moved around a room and has a camera that can overlay outside images into the VR experience.

HTC shares went up by more than 5% following the news.

We’ll see whether the HTC Vive can follow through on its promise when it finally launches in April.

HTC officials withheld comment on it.