The PlaySide Studios Ltd (ASX: PLY) share price is in the spotlight this morning amid its latest announcement.
Shares in the Australian game developer are sparkling a little brighter today, leaping 11.11% shortly after open on Monday.
They have since retreated — at the time of writing, PlaySide Studios shares are up 6.94% at 77 cents. Shareholders are receiving the much-needed boost following the company's work-for-hire extension with social media and virtual reality juggernaut Meta Platforms Inc (NASDAQ: FB).
What does it mean for the ASX-listed company?
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More work with Meta is on the horizon
Investors are doing a double-take of PlaySide Studios today as it deepens its relationship with a US$500 billion tech giant.
An extended work-for-hire development agreement will see the Aussie game developer get another 16 months with the company formerly known as Facebook. The agreement likely quells any concerns that PlaySide had seen the last of Meta after signing a six-month extension more than eight months ago.
The previous work involved conceptualisation, creation, and development of prototype works for Meta's Horizon Worlds. For those wondering, Horizon Worlds is a virtual world that is readily accessible using Meta's Quest VR headsets.
PlaySide CEO Gerry Sakkas commented on the announcement:
Significantly extending and expanding our agreement with Meta further builds on our relationship with this global brand and leader in innovation and validates PlaySide's ability to meet and exceed Meta's expectations as well as generating significant additional opportunities and revenue for PlaySide.
In addition to the 16-month extension, PlaySide has also landed a separate six-month contract with Meta. According to the announcement, this agreement will see the Aussie developer work on a new VR initiative for Meta. The project has a fast turnaround, set for delivery in October 2022.
PlaySide Studios share price recap
It has been a difficult year so far for PlaySide shareholders. The small-cap company's share price has been steadily chipped away, now 40% lower. However, we can see a more positive picture when zoomed out. One that shows the PlaySide Studios share price up an impressive 167% in the past year.
Although, the market might be looking over PlaySide with a sceptical lens due to the composition of its third-quarter revenue. While the company achieved a record quarterly revenue of $13.76 million (up 403%), around half of that stemmed from a one-off sale of non-fungible tokens (NFTs).
