SKonec: Leading VR Content Developer - BusinessKorea

The writer is an expert of NH Investment & Securities. He tin beryllium reached at kyeongkeun.kang@nhqv.com. -- Ed. 

Having developed VR contented successful the home crippled marketplace for implicit 10 years, SKonec boasts the heftiest VR crippled way grounds among Korean players. With planetary IT companies present starting to motorboat XR devices successful earnest, SKonec is good situated to spot net maturation going forward.

Boasts heftiest VR crippled way grounds among home developers

SKonec has been deep-diving successful the VR crippled contented improvement arena for implicit 10 years, boasting the highest output of specified (around 40 titles) among Korean developers. In 2015, the institution commercialized games for Samsung GearVR and it developed the aesculapian contented crippled Befearless. In 2017, the firm’s first-person shooter (FPS) VR crippled Mortal Blitz topped the planetary download rankings astatine the Sony PlayStation VR Store.

Following Meta, planetary IT giants specified arsenic Apple, Sony, and Samsung Electronics are entering the XR marketplace successful earnest. This absorption bodes good for SKonec fixed its acumen successful processing VR crippled content. We enactment that SKonec is presently processing the VR FPS Strike Rush (for the Meta Quest) via associated concern with Meta. Its planned aboriginal crippled releases are besides to see the VR flight country genre rubric Escape Room (for the PSVR2 and Meta Quest).

Expanding concern scope to see XR

SKonec’s proprietary exertion features its large-space XR walking system. First developed successful 2016, the strategy leverages walk-through exertion that allows aggregate radical to determination freely wrong a remarkably ample abstraction offering abundant virtual scenery. In summation to attracting the lion’s stock of home spatial XR education/training projects, SKonec has besides built up awesome way records with defense, chemistry, and nationalist information clients. Moving ahead, the institution plans to physique a level with offering a wide assortment of acquisition and grooming contented that is to beryllium supplied to some backstage companies and nationalist institutions.

We expect the firm’s operating losses to lessen this year, anticipating an OP turnaround from 2024, the twelvemonth successful which income of caller VR games should commencement hitting afloat stride. Although immoderate short-term net risks exist, we counsel that investors instrumentality a mid/long-term involvement successful an appealing subordinate offering sizeable VR crippled contented acquisition astatine a juncture erstwhile the VR crippled marketplace is acceptable to bloom.