Nokia Pulls Out of 'Slow-Developing' Virtual Reality Business

The Ozo features eight cameras and eight directional microphonesNokia

"The slower-than-expected development of the VR market means that Nokia Technologies plans to reduce investments and focus more on technology licensing opportunities", it said in a statement. As a result, the company will not be developing a new version of its stereoscopic OZO camera. The OZO camera offers eight 4K sensors and eight corresponding wide field of view cameras.

Nokia was the first to market with a solution that could offer high-quality captures for the professional market with a single device.

There's good news for existing OZO users, however, as Nokia promises that existing commitments will not be impacted.

Nokia Corp. NOK, +0.17% said Tuesday that it will cut around a third of its technologies unit workforce as it takes a step back from a stalling virtual-reality market and sharpens its focus on digital health. It will also try to license out the technology it has already developed.

Last year, Nokia revealed its intention to buy digital health company Withings to bolster its digital health business.

The virtual reality market may have a lot of buzz around it at the moment, but not enough for Nokia, maker of the groundbreaking Ozo VR video camera.

On Tuesday, the Helsinki, Finland-based firm said up to 310 out of roughly 1090 employees in Nokia Technologies will be impacted, and staff levels will be reduced mainly in Finland, the USA, and the UK.

The company will focus more on growing its brand and technology licensing while accelerating growth in the digital-health market, it said. "While necessary, the changes will also affect our employees, and as a responsible company we are committed to providing the needed support to those affected".

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