After experiencing decline in sales of their smartphones, Nokia is now eyeing the virtual reality bandwagon with its first VR expected to see the light of day next week.

On Tuesday, Q13 Fox received word that Microsoft had no choice but to write off their Nokia phone business.

The Australian revealed that the software giant had written off 80 percent of the US$9.4 billion deal they had with Nokia.

With the added burden of the steep decline in PC sales amid the company's preparations for the upcoming Windows 10, the Washington-based company is currently facing a difficult quarter after experiencing a staggering net loss of $3.2 billion that reversed the $4.61 billion profit they earned last year.

Fortunately for the Finnish multinational ICT firm, the new era of virtual reality is open for new comers.

Tech Radar was able to receive confirmation that Nokia would be releasing its first ever VR device at a VIP event in Los Angeles this coming week.

"It only makes sense that Nokia would get into the VR game," the report said. "Heck, it'd be stupid if it were to sit this one out. HTC is doing VR. So are Microsoft, Samsung and Google. Even Facebook is giving it a go with its purchase of Oculus Rift."

"The tech world at large has VR squarely focused in its sights," the report also stated, emphasizing how great of a deal this move is for the company.

The company had kept quiet about this new product's design and features, making it all the more highly anticipated and leaving fans drooling for more.

According to Recode, this has been the most significant move that the Finnish company would be making since the sale of its flagship smartphones to Microsoft.

Nokia would be joining already-experienced giants in the virtual reality game market, which Recode says is now booming and recovering from its seemingly-premature start back in the 1990s.

The Uusimaa-based firm's latest release involved the Nokia N1 tablet, which was made available in the huge tablet market in China with a number of software products like the Android app launcher.

While the company is keeping quiet about its new venture with a representative declining to comment because the company allegedly does not talk about speculations and rumors, Nokia CEO Rajeev Suri revealed that they are currently on the verge of pursuing "immersive imaging."

Recode also revealed that Nokia had been very active in terms of networking equipment and was reportedly in the process of acquiring their former competitor Alcatel-Lucent.