According to Digi-Capital, the augmented reality and virtual reality market could reach $150 billion by 2020. The report from Digi-Capital notes that the market is already seeing a healthy level of competition.
Digi-Capital believes that for the augmented reality and virtual reality market to meet its potential, seven key drivers will have to be delivered. Some of them though are already in place, the
report notes. The seven drivers include mobility, vision, immersion, usability, flexibility, wearability and affordability. Another key for the market to meet its potential will be investment.
This morning, Florida-based Pulse Evolution Corporation (OTCPK:PLFX), which focuses on the production of specialized, high-impact applications of computer-generated human likeness for utilization in entertainment, life sciences, education and telecommunication, announced that it received $10 million in investment from Original Force Computer Animation Co. Ltd. and
Shanghai U9 Game Co. Ltd. The two companies invested in PLFX common stock at a valuation of $1 per share. In mid-day trading on Monday, PLFX was trading at $0.550.
Original Force and Shanghai U9 Game are backed by Chinese digital-entertainment major, Tencent Holding Limited, which is a $200-billion conglomerate.
Pulse noted that investment is part of a larger strategic relationship through which Original Force and U9 Game have become the first licensees of PLFX’s market-leading human animation software. Original Force, whose principal business is feature animation filmmaking, will benefit from Pulse Evolution’s technology.
U9 Game, meanwhile, will get the opportunity to deploy the technology in the character based applications of its high-growth video game business. In addition, both companies will become partners of PLFX’s affiliated entertainment production companies.
Commenting on the development, John Textor, Executive Chairman of Pulse Evolution, said that the company is certainly pleased to have the support of Original Force and its Chairman Harley Zhao.
Textor said that the company has great respect for their commitment to story-based content and shares a belief that the greatest stories deserve the very best in visual imagery. He added that the company is also excited to have further validation of its technology from Shanghai U9 Game and its CEO Liang Liu.
Original Force founder and President Zhao noted that the people of Pulse represent the greatest traditions of computer animation and their new company has quickly become the gold standard of human animation. Zhao said that his company was thrilled to be partnering with Pulse Evolution.
While all the CEO’s were praising each other in today’s PR, the stock sat quiet at $0.55 and is down significantly from its highs in late-September. Hopefully after everyone finishes patting themselves on the back, they will get back to business and try and build some shareholder value for the stock and Company.
The announcement certainly was positive, however the lackluster response from shareholders should concern the Company, and hopefully this new strategic relationship will be the start of some positive business momentum that will benefit all shareholders.
