Acer and Starbreeze join forces for the StarVR Virtual Reality headset

The VR headset designed for cinematic experiences has a new partner.

Computer hardware company Acer and software developer Starbreeze announced today that the two groups have approved a new joint venture created for design, promotion, manufacturing,marketing, and sales of the StarVR Virtual Reality Head-Mounted Display. The new company is provisionally called Acer Starbreeze Corporation and has authorized capital of up to $25 million, shared equally between the two companies. The virtual reality could reach $40 billion in spending by 2020, according to SuperData Research.

Acer and Starbreeze will each hold 50 percent of the shares in the new company, and both will incrementally add more funds to the joint venture “based on capital needs and planned schedule.”

“Our strategic alignment with Acer is going to exponentially improve the StarVR HMD in terms of quality, execution, and market reach,” said Bo Andersson Klint, the chief executive officer of Starbreeze, in a press release sent to GamesBeat. “Together, we will keep pushing the frontier of VR technology. With the Acer production partnership for the StarVR headset, our joint venture with IMAX for location-based entertainment, and the content platform collaboration with Smilegate, we now have a perfect ecosystem for our VR centers.”

While recent VR headsets like the Oculus Rift and the HTC Vive are designed for home use, StarVR is targeting location-based entertainment venues like IMAX theaters and arcades.

Starbreeze plans to ship a small number of StarVR headset this year, but full production will begin in 2017.