The PlaySide Studios Ltd (ASX: PLY) share price is having a very strong day on Tuesday.
In morning trade, the game developer's shares are up 14% to 68 cents.
At one stage, the PlaySide share price was up as much as 28% to 76 cents.
Why is the PlaySide share price rocketing higher?
Investors have been scrambling to buy PlaySide shares today after the company announced an agreement with Facebook and Instagram owner Meta Platforms (NASDAQ: META).
According to the release, following a successful concept pitch, Meta has engaged PlaySide to design, develop, and create a mixed reality interactive software product to be playable on its Quest suite of virtual reality devices.
What are the terms?
PlaySide notes that it will receive payments for the development of the game and will also receive a share of net revenues from the game in perpetuity.
The development payments will be received at agreed milestones, which are consistent with industry benchmark requirements for progressing the game to launch. The agreement is effective immediately and work on the title is expected to commence in the current financial year.
PlaySide's CEO, Gerry Sakkas, commented:
This deal marks the next evolution of our work in the studio, as we leverage our abilities to conceptualise and develop exciting games in a revenue-share arrangement with a leading global technology company. Meta is bringing virtual reality and mixed reality into the mainstream with its Quest suite of products, and we are excited about the opportunity to demonstrate our domain expertise with this game.
Meta will no doubt be hoping that this game gives its often ridiculed Metaverse platform a much-needed boost. Maybe legs will be included this time!
