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

Google made headlines with its $250 million acquisition of a group of HTC’s XR engineers, a strategic move intended to speed up the development of the Android XR platform within the growing ecosystem of headsets and glasses.

This acquisition follows Google’s recent announcement of the Android XR platform, marking a major change in the competitive arena. Samsung is poised to be the trailblazer by launching a headset powered by Android XR. While there’s noteworthy excitement about familiar players stepping into the consumer XR arena, it’s tempered by skepticism about Google’s long-term commitment, given its track record.

Google has tried to alleviate some concerns in a detailed discussion with Road to VR—although, let’s be honest, the ghosts of Google’s past do haunt this new venture. There’s a long list of discontinued projects, including Google Daydream, which was Google’s ambitious foray into the XR world back in 2016.

Recently, Google disclosed its arrangement to bring onboard several XR engineers from HTC for a hefty $250 million. The specifics are still under wraps, but it seems Google is seeking HTC’s hardware prowess to stabilize its footing in today’s XR sector.

In their statement, Google shares, “We’ve been committed to XR for over ten years, and our recent launch of the Android XR platform with strategic partners signifies this. Welcoming part of the HTC VIVE team strengthens our technical domain, and we anticipate enhancing the Android XR platform in both headset and glasses areas.”

Oddly, this isn’t Google’s first big-ticket HTC acquisition. Back in 2017, Google spent $1.1 billion to acquire HTC’s smartphone brainpower. A year later, HTC melded its smartphone and VR sectors, highlighting a shift towards XR innovations.

As of now, the specifics of this acquisition’s impact on HTC remain a bit of a riddle. Based in Taoyuan, Taiwan, HTC remains a key player in manufacturing XR devices aimed at enterprises and tech-savvy consumers, with its newest offering being the Vive Focus Vision, a standalone mixed reality headset priced at around $1,000, combining features from earlier models.

Despite its primary XR focus, HTC hasn’t completely stayed away from non-XR gadgets. In 2018, they launched the HTC Exodus 1, a blockchain-focused phone, which was quite the conversation starter, prompting a sequel. In 2019, HTC introduced a 5G hub designed for home use, tapping into the initial excitement surrounding 5G technology. Currently, none of these devices are on the market, leaving us curious about what HTC will do next.