Offering another big indicator that the virtual reality (VR) market isn’t moving as rapidly as some companies would like, Nokia announced Tuesday that it will halt development on new versions of its Ozo VR camera (pictured) and other hardware products in the Ozo family.

Instead, Nokia will put more focus on technology licensing opportunities.

Nokia stressed that it will maintain comments to existing Ozo customers, but said “slower-than-expected development of the VR market” was the culprit behind the decision.

Among recent announcements, Accedo teamed with Nokia on a VR initiative to help pay TV operators and broadcasters develop and publish content in the format, and Nokia and NeuLion struck up a VR partnership last year.

Nokia also disclosed that the decision will affect as many as 310 of the 1,090 employees in Nokia Technologies, who are mostly based in Finland, the U.S. and the U.K.

Amid the slowdown on the VR front, the company said it will boost its commitment to digital health, which stems in part to its $191 million acquisition of Withings in 2016.

"Nokia Technologies is at a point where, with the right focus and investments, we can meaningfully grow our footprint in the digital health market, and we must seize that opportunity," Gregory Lee, president, of Nokia Technologies, said in a statement.

Nokia Technologies said it has entered a multi-year deal with The Walt Disney Studios to help the content house create complementary virtual reality/360 video content for its theatrical releases using vendor’s OZO VR camera and integrated software.

Of recent note, Nokia and Disney used OZO to create two 360 videos – red carpet coverage and cast interviews -- in support of the April premiere of The Jungle Book.

Nokia launched the OZO in November 2015.

“Virtual Reality represents a new frontier in storytelling, and we’re thrilled to be bringing this VR technology to the team at Disney,” Ramzi Haidamus, president at Nokia Technologies said, in a release. “OZO will help Disney bring their film properties to life in new ways through immersive entertainment experiences, and our focus will be on helping them get the most out of VR as they begin to uncover all that it has to offer.”

“We are very excited to collaborate with Nokia Technologies to help explore the creation of VR content for our theatrical releases,” said Jamie Voris, Chief Technology Officer, The Walt Disney Studios.

 “We aim to bring extraordinary experiences to audiences around the world, and specially-created VR content is one more way we can transport people even further into the worlds our filmmakers create,” added Jamie Voris, The Walt Disney Studios’s CTO.