Is Google Ready To Launch An AR Device?

In a strategic move to bolster its position in the extended reality (XR) market, Google has announced the acquisition of a segment of HTC’s XR division for $250 million. This deal includes the transfer of select HTC employees to Google and grants Google a non-exclusive license to HTC’s XR-related intellectual property, while allowing HTC to continue its own development in this field (see Reuters)

This acquisition is reminiscent of Google’s 2017 purchase of HTC’s smartphone operations for $1.1 billion, a transaction that integrated a significant portion of HTC’s engineering talent into Google’s hardware endeavors, notably influencing the development of subsequent Pixel smartphones (see TechCrunch).

The current deal is poised to accelerate the development of the Android XR platform, Google’s newly announced operating system tailored for extended reality devices such as headsets and smart glasses. Android XR aims to offer immersive versions of Google applications, support existing phone and tablet apps, and feature a multi-window version of Chrome. Central to this experience is Google’s Gemini AI, designed to enhance user interactions within XR environments (see The Verge)

In tandem with this acquisition, Google is collaborating with Samsung on “Project Moohan,” a mixed reality headset set to be the first device running on Android XR. Scheduled for release in 2025, Project Moohan is expected to offer high-end features at a price point significantly lower than Apple’s $3,500 Vision Pro (Financial Times)

These strategic initiatives underscore Google’s commitment to establishing a robust presence in the XR market, positioning itself alongside competitors like Apple and Meta. The integration of HTC’s expertise and the partnership with Samsung signal a concerted effort to develop consumer-ready AR devices, potentially leading to significant product launches in the near future.

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