South Korea’s heart is shrinking on VR spending, and Facebook and HTC’s investment is going to be a waste of money?

Recently, some media reported that the South Korean government had cut spending on the VR industry development plan last week, and the investment dropped to 9.8 million US dollars, a 42% reduction. According to outside suspicions, this move by South Korea is estimated to be caused by the rapid rise of the Park Geun-hye scandal. Although there is no direct connection between the two, a government oversight agency in South Korea said that the reduction in investment reflects the government's concerns about the transparency of the VR industry development plan and the lack of understanding of the goals of the development plan.

In fact, since the beginning of 2016, South Korea has increased its investment in virtual reality. For example, in August, the South Korean government plans to set up a virtual reality and augmented reality special fund of about 35.8 million US dollars (about 240 million yuan). The minister in charge of technology, communications and future planning said on Sunday that the special fund will be managed for seven years and will be dedicated to game companies, theme park companies and educational resource companies in the AR/VR direction.

Now that the South Korean presidential scandal has estimated that it has indirectly affected the development of the Korean domestic economy, the guilty measures against VR at this special time have also surprised the outside world. After all, the government’s policy and financial guarantees have been reduced. Enterprise development VR still has a lot of difficulties. Does South Korea’s approach to the virtual reality industry indirectly affect the VR investment plan announced by Facebok and HTC earlier in Korea?

Previously, foreign media reported that Facebook Korea plans to set up a commercial hub in the headquarters of Seoul-Heilland. This will also be the first business hub for Facebook to support technology development and marketing in Asia, so that Korean startups can easily enter the overseas market with their Facebook platform in their home country.

As another giant in the global VR field, HTC is not far behind. It not only unveiled G-STAR with domestic and foreign content partners, but also announced that Vive officially landed in South Korea, and signed a strategic cooperation agreement with Busan City in Korea during the conference. HTC will provide technical support for the Busan Information Industry Promotion Agency (BIPA) "VR Incubation Project" to build a new Korean VR ecosystem.

South Korea’s heart is shrinking on VR spending, and Facebook and HTC’s investment is going to be a waste of money?

Both Facebook and HTC have made South Korea the preferred location for overseas deployment. It is estimated that many onlookers are curious. Are the two companies discussing it well? Why do they choose South Korea? The VR Daily has speculated that there are two reasons:

South Korea’s heart is shrinking on VR spending, and Facebook and HTC’s investment is going to be a waste of money?

Actively expand overseas markets to consolidate advantages

For the time being, in fact, Facebook and HTC have occupied a favorable position in the development of vr technology. Whether it is hardware or content platform and various related VR applications, it has strong strength and therefore is in the early stage. After the technical foundation is gradually completed, how to make more users willing to pay, turn technology into productivity, and expand market share in the world has become a key issue that these global multinational Internet companies pay attention to.

The cooperation between Facebook and South Korean Samsung companies has long been a source of cooperation. The two sides have considerable technical cooperation. For example, Samsung's Gear VR is jointly launched with Oculus, and Samsung's development advantages in mobile VR are becoming more and more obvious. Of course, this also benefits from Samsung's support for virtual reality technology. Therefore, it is normal for Facebook to list Korea as its first overseas cooperation region. After all, friendly cooperation with Samsung has been ongoing.

For HTC, despite the huge market in China, there are many competitors, and the layout of various giants in virtual reality is also closely followed. Although HTC has already laid out the situation in the Mainland, the focus of development is also In the Mainland, but this does not affect its active South Korea to seek development cooperation opportunities. After all, South Korea’s current development in virtual reality may be more mature than domestic ones.

The strategic layout of the two companies needs

At present, the two sides have in-depth cooperation in technology. Facebook and HTC are becoming more and more clear in the development direction of virtual reality. How to open up competitors in a short period of time, gain greater competitive advantage, and have long-term strategic development plans. The two companies chose to cooperate with the South Korean government, and it is estimated that they are also pulling strategic partnerships. After all, it is common to put a long line of big fish. Cooperation with the government means that resources and policies can be enjoyed on this land. Reliable guarantee.

Although the current development of virtual reality does not form a complete ecological chain, it is also a development opportunity for giant enterprises. Who can grasp the initiative of development more quickly, and who has more right to speak in the future development field, Facebook and HTC also know that the risks and costs of relying on their own single-handedness will increase. It is a strategic long-term plan to choose a strong cooperation organization.

According to the latest information, the Korean government's investment in VR has been greatly reduced. What impact will it have on Facebook and HTC?

South Korea’s heart is shrinking on VR spending, and Facebook and HTC’s investment is going to be a waste of money?

More money will be invested

At present, I don't know what the Korean government's spending on the VR industry is reducing, but for Facebook and HTC, the money for self-sufficiency will definitely increase compared with the previous one. After all, it is the cooperation between the two companies and the South Korean government. In order to expand their overseas development advantages, they should not easily revoke the cooperation between the two parties. After all, in the long run, we must establish our own better development advantages. However, as South Korea lowers its spending on the VR industry, Facebook and HTC should also be more cautious in investing in capital. After all, there are certainly many places to spend.

Policy guarantees will be discounted

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