INTC Intel Corporation

By Don Clark 

SAN FRANCISCO -- Intel Corp. stepped up an effort to shape the fast-moving market for virtual-reality technology, demonstrating an unusual headset prototype it hopes other companies will manufacture and sell.

The chip maker, which also announced plans to collaborate with Microsoft Corp. in the field, said its "Project Alloy" prototype differs from other virtual-reality headsets in several ways, most notably because it doesn't need to be connected to a high-performance personal computer, as Facebook Inc.'s Oculus Rift device does.

Project Alloy headsets also have front-facing 3-D camera technology, known as RealSense, which allows the wearer to see objects surrounding them in the physical world and to use hand gestures to execute commands rather than a separate controller device.

Intel's approach could be considered a variation on augmented reality, a term that usually refers to headsets that combine digital images with the physical world. The company on Tuesday applied the term "merged reality" to Project Alloy, stressing the benefits of RealSense in making simulated experiences more useful and convenient.

"When sight and computing come together, it gives the device the ability to understand and respond to its environment," said Brian Krzanich, Intel's chief executive, at the company's annual gathering of developers here.

The Wall Street Journal in March reported that Intel was working on an augmented-reality headset using RealSense. Mr. Krzanich said the company would share specifications for Project Alloy to allow other companies to make their own versions of the product in the second half of 2017.

No pricing was discussed for the technology.

Intel's effort coincides with Microsoft's own efforts in virtual and augmented reality, which i nclude a headset dubbed HoloLens and software known as Windows Holographic. Terry Myerson, a Microsoft executive vice president, said his company would work with Intel to help developers create software that would work with both companies' technology.

(END) Dow Jones Newswires

August 16, 2016 14:19 ET (18:19 GMT)

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