SKonec
The author is an analyst for NH Investment & Securities. He can be reached at kyeongkeun.kang@nhqv.com -- Ed.
Possessing the heftiest VR content track record and development capabilities in Korea, SKonec is gaining momentum on global IT giants’ foray into the XR market. We expect the firm to enjoy further business expansion within the XR industry.
Strongest VR content track record and development ability in Korea
As an extended reality (XR) content developer with over 10 years of VR content development experience, SKonec boasts the most robust VR content track record among Korean players through its development of over 40 works. Following Meta, global IT giants such as Apple, Sony, and Samsung Electronics (SEC) are now entering the XR market in earnest.
Apple’s Reality Pro MR headset is scheduled to be unveiled in June. Meta’s main headset model, the Oculus Quest 3, is also forecast to be released in 2H23. We expect the intensification of competition to secure high-quality content following the successive releases of XR devices to be a significant opportunity for SKonec.
Business to expand within XR industry, backed by outstanding development strengths
In 1Q24, SKonec plans to release VR FPS title Strike Rush (currently being developed jointly with Meta). By 2025, the firm aims to launch more than 15 global XR games and additional content. In addition, the company plans to expand its business scope to include cooperation-based content development and distribution business based on its ample networking and development capabilities.
SKonec aims to grow the VR ecosystem and discover top-tier content via collaboration with Korean game and entertainment firms. With global IT giants accelerating their entry into XR, SKonec stands out as a noteworthy domestic play for the mid/long term, given its solid XR content track record and unique technological capabilities.