(Alliance News) - Mercia Asset Management PLC said its investee company nDreams Ltd has signed a contract with an unnamed games publisher.
Mercia holds a 36.4% stake in nDreams, which develops and publishes virtual reality video games.
nDreams will, alongside the "leading global games publisher", create content for the location-based entertainment virtual reality market.
The global location-based entertainment VR market is poised to grow by USD1.5billion during 2019-2023 and predicted to make up around 11% of the VR industry, said Mercia.
"We're delighted with this new contract. This, along with the contracts we signed last year and winning the Game Critics Award at E3, demonstrates the confidence that the major players are showing in nDreams as one of the highest quality VR studios in the world," said nDreams Chief Executive Patrick O'Luanaigh.
In 2019, nDreams announced VR action game Phantom: Covert Ops, which it is developing in partnership with Oculus Studios.
"We're also increasingly excited about the growth of the VR market; we're on track to double last year's revenue this financial year. Furthermore, with headsets like the Oculus Quest and Valve Index sold out for months ahead and multiple VR games now selling over 1million copies each, the VR market is growing extremely well," he added.
Mercia shares closed up 1.5% at 26.40 pence each on Thursday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Mercia Asset (MERC)