Playside (ASX:PLY) share price surges on Shiba Inu Games deal

Playside shares are in focus on a deal with Shiba Inu Games.

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The Playside Studios Ltd (ASX: PLY) share price is jumping after entering into a fixed price work-for-hire development agreement with Shiba Inu Games.

Playside Studies is Australia’s largest publicly listed video games developer. PlaySide describes Shiba Inu Games as one of the many projects established by the cryptocurrency community to create great games.

Playside Studios agreement with Shiba Inu Games

Under this agreement, Playside will provide production, design, engineering, art, user interface and experience development services to Shiba Inu Games on a new game title during the 8-month term of the agreement.

The development of the game will draw from the art of the Shiba token’s ‘Shiboshi’ NFT (non fungible tokens) and will feature card collection, strategy and battle mechanics.

The multiplayer collectible card game is planned to be launched on multiple platforms with a proposed launch date in the first quarter of FY23.

Playside disclosed this is a fixed-price development agreement and does not include a revenue share. The ASX share will be paid in US dollars and will not trade or participate in cryptocurrency as part of this agreement.

What does Playside like about the deal?

The market seems to like this agreement, with the Playside share price up around 5% at the time of writing.

But in explaining the rationale for this deal, the company said it wants to “collaborate with strategic partners to develop games using the latest trends that are shaping the future of the gaming industry”.

Playside likes the deal because there are new opportunities in games, like this one, that take advantage of booming global trends such as the metaverse, cryptocurrencies, non-fungible tokens and blockchain gaming.

The continuing and rapid evolution of new businesses within the industry increases the demand for games and provides “significant opportunities” for the company. It will allow the business to showcase its capabilities in a new area of gaming.

Playside said this will show off its credentials as a global premier game developer.

CEO commentary

Gerry Sakkas, the CEO of Playside, said:

Playside continues to demonstrate its capability to partner with leaders across a range of fields within interactive entertainment including leading influencers and global gaming brands. To add a new games client that has emerged from the popular NFT, token and decentralised cryptocurrency industry is very exciting for us.

Emerging technologies continue to gather pace, and this is an ideal opportunity for Playside to collaborate in this field, expand our skill base and showcase our development abilities.

The scale of the agreement with Shiba Inu Games is also significant and highlights the depth of our capabilities as we continue to grow our business.

Playside share price snapshot

Whilst the shares are up 5% today at the time of writing, it has gone up by 115% since 6 October 2021, meaning it has outperformed most other ASX shares over the last couple of months.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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