With the help of camera rigs such as Nokia's Ozo, the amount of content being created for VR headsets is rising quickly.
Soft capital spending from telcos weighed on Cisco's router sales and order growth. Many peers are facing similar challenges.
Nokia is reducing the price of its virtual reality camera by 25% as it prepares to launch it in China.
Microsoft and Intel launched big layoffs recently that targeted legacy businesses and freed up resources for growth markets. Cisco appears to be planning something similar.