Jul 09, 2019 (China Knowledge) - Forgame Holdings, a Chinese online and mobile game developer has bought a 69.84% stake in virtual reality startup Beijing Xigua Huyu Entertainment Technology for RMB 150 mln.
Forgame which was founded in 2009 mainly offers relatively simple web games. The company was listed on the Hong Kong Stock Exchange in 2013.
Conversely, Xigua which was founded in 2015 is in the business of developing large-space VR technologies. The company operates nearly 100 "Player No. 1" VR arcades, which located in shopping and entertainment districts in large cities as well as small towns across China. Xigua plans to increase its VR arcades to over 350 by the end of 2019.
Xigua’s Infinite Multi-Target Positioning System (IMPS) technology allows users to locate multiple targets in large VR spaces and provides them with a greater degree of immersion and interactivity. Considering most of the VR games that have been developed for "Player No. 1" are basically designed for male gamers, the company is also planing to develop games targeting female players.
As such Forgame acquisition of Xigua can be seen as part of its plan to upgrade and supplement its game business.
According to Wang Dongfeng, chairman, CEO and co-founder of Forgame, the acquisition was prompted by expectations that VR will be critical towards the game and content industries in the future. Wang regards Xigua as a VR company with extensive capabilities in hardware development, distribution and content development.
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