The Augmented Reality and Virtual Reality segment has seen tremendous growth in the recent past as these technologies are being used for a wide variety of purposes.
YDreams Global Interactive Technologies Inc. (TSX-Venture:YD) is a technology company which is now focusing on these booming sectors.
The company has a multi-pronged approach as it is not only engaged in the highly lucrative AR/VR gaming sector but also in other areas such as the use of technology for military training purposes.
The company expanded its geographical reach as it announced this morning the inking of a new deal with CRTV International Media (Beijing) Company Ltd, which is a government-backed enterprise engaged in the development of virtual reality technology.
The main aim of the collaboration is to develop virtual reality and viewer immersion entertainment projects aimed at the movie and entertainment industry.
YDreams said that the deal will help it in further boosting its presence in China. It also said that its partner is a highly-regarded stakeholder in the AR/VR industry. CRTV owns 76 cinemas and has affiliations with 2,000 theatres and cinemas in China.
The company recently rejigged its organizational structure as well by creating a new gaming VR division. The new division will help YDreams in developing scalable AR and VR experiences. The company plans to explore the VR gaming segment this year.
VR gaming is one of the hottest emerging trends. YDreams can expect long term benefits if it manages to make some early breakthroughs in the area. The VR gaming market is expected to be worth over $9 billion by 2022, making it an important business segment for the Company.
YDreams will use its own proprietary games on the platform, thus offering synergistic value to its operations. The Company further augmented its position in the sector as it obtained the invitation to join the prestigious AR/VR Association. The membership will help the company in reaching out to new partners and be a part of new developments.
YDreams is also diversifying the business as of late last year when it announced its first virtual reality project in the United States. Lastly, the company is also collaborating with AquaRio, the largest aquarium in South America.
Shares of YD have been on an excellent run so far this year as it further builds on its impressive performance last year, when the stock gained over 2,600%.
Despite its astronomical rise in 2016, the stock still has the potential to provide good returns as their business continues to consolidate in their booming sector. Further ventures into international markets are also expected to help boost the bottom line, something that investors will undoubtedly be thrilled with.
