Google Purchases Vive Engineering Team for $250M, Prompting Speculation on HTC’s Future Plans

In a recent strategic move, Google has invested $250 million to acquire a significant number of XR engineers from HTC. This bold step is aimed at boosting the development of the Android XR platform, with an eye on expanding across the diverse ecosystem of headsets and glasses.

Google’s introduction of Android XR last month marked a pivotal shift in the competitive XR market. While Samsung appears poised to debut a headset powered by this platform, there are still some doubts about Google’s long-term commitment to XR, stemming from its past track record. Despite Google’s efforts to quell these concerns, memories linger of initiatives like Google Daydream, its 2016 venture into the XR space that was eventually shelved.

Recently, Google announced its collaboration with HTC, which involves onboarding several of HTC’s XR engineers. The specifics remain under wraps, but it’s likely Google sees value in HTC’s hardware expertise as it aims to solidify its standing in the current XR market.

“We’ve been involved in XR development for over ten years, and just last month, we unveiled the Android XR platform with key industry partners,” said Google in its statement. “Today, we’ve signed a deal to bring onboard some members of the HTC VIVE engineering team. These engineers have demonstrated remarkable skill in the VR field, and we’re excited to collaborate with them to fast-track the growth of the Android XR platform across various headsets and glasses.”

Interestingly, this isn’t Google’s first financial engagement with HTC’s engineering talent. Back in 2017, the tech giant invested a hefty $1.1 billion to acquire HTC’s smartphone engineering team. Not long after, HTC merged its smartphone and VR divisions, hinting at a stronger focus on XR innovations.

The specific outcomes of this deal for HTC remain uncertain. Based in Taoyuan, Taiwan, HTC is known for producing XR headsets for both enterprise and tech-savvy consumers. Their latest product, the Vive Focus Vision, is a $1,000 standalone mixed reality headset that combines features from earlier models like the Vive Focus 3 and Vive Elite XR.

That said, HTC hasn’t completely stepped away from non-XR ventures in recent years. In 2018, the company ventured into cryptocurrency with the HTC Exodus 1 phone, followed by another release in 2019. They also tapped into the 5G trend with an at-home hub, though these devices are no longer available. For now, we’ll have to keep an eye on how this new chapter unfolds for HTC.