10:31am PT by Carolyn Giardina
Nokia Halts Virtual Reality Camera Development Citing "Slower Than Expected" Market
Nokia announced Tuesday that it is halting development of further versions of its OZO virtual reality camera system, citing the "slower-than-expected development of the VR market."
The company said its new strategy in this area is to "reduce investments and focus more on technology licensing opportunities" while "maintaining commitments to existing (OZO) customers." That would include studios such as Disney, which had a multiyear agreement to use the Nokia cameras for VR.
Instead, Nokia intends to focus on its digital health business. This change in strategy is expected to affect up to 310 of the roughly 1,090 employees in Nokia Technologies, mainly in Finland, the U.S. and the U.K., according to the company.
The news comes on the eve of the Oculus Connect VR developers conference, which opens Wednesday in San Jose.