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Highlights
- PlaySide’s agreement with Meta has been expanded for further 16 months.
- The work-for-hire development deal is Meta’s strategy for both the metaverse and virtual reality.
- PlaySide shares have gained considerably after the announcement.
Mobile games developer, PlaySide Studios Limited (ASX:PLY) gained investor’s attention today (6 June 2022) after the company shared that it is going to work with social media giant Meta Platforms, Inc. for another 16 months.
Meta Platforms, Inc. was formerly known as Facebook, Inc. It is listed on NASDAQ under the ticker FB. FB has market capitalisation of approximately US$545.44 billion as of June 2022.
The shares closed 2.777% higher at AU$0.740 per share, with a market capitalisation of AU$291.52 million.
Worth mentioning here is that PlaySide shares outperformed its benchmark index, ASX 200 Communication Services (XTJ), that closed 1.120% lower today.
Suggested reading: ASX200 to open lower amid global recessionary expectations
Details of the agreement between Meta and PlaySide
As per the ASX-announcement, the existing work-for-hire development agreement between Meta and PlaySide has been expanded and extended for another 16 months.
The previous work-for-hire agreement included the work of development, creation and conceptualisation of prototype games and exploration services on Meta’s Horizon Worlds platform. Horizon Worlds is a social virtual reality application of Meta that will empower the creators to sell experiences and digital goods in their world.
Image source: © Chakisatelier | Megapixl.com
In addition to the 16 months extension of the agreement, PlaySide has secured a separate six-month contract. Under this six-month additional contract, the company will offer a new virtual reality initiative for Meta. It is expected to be delivered in October 2022.
PlaySide’s management said that the extension of the agreement reflects the trust of Meta in the development capabilities of the company. Moreover, it shows the strong relations between the two companies.
On the development, CEO of PlaySide, Gerry Sakkas:
Sakkas added that the agreement reinforces the company’s belief in virtual reality and the part it will play in the metaverse.
About PlaySide Studios
Australia’s largest video game developer, PlaySide Studios, was listed on the ASX on 17 December 2020. The company has developed games in collaboration with large studios such as Nickelodeon, Warner Bros, Pixar and Disney. The portfolio comprises more than 50 titles delivered across PC, augmented reality, virtual reality and mobile. The company came to life in 2011 and had headquarters in Port Melbourne.
