Beyond Frames is active in the field of VR (virtual reality) games development. We believe the market for such games will grow in the future, given the high growth in VR hardware spurred by the pandemic and made possible by decreasing prices and less stringent systems requirements. We anticipate a robustly expanding market in the coming years. In our view, the volumes of headsets sold during the pandemic and the fact that headset prices have now diminished has led to a relatively large market into which games developers can release titles. Moreover, we believe many of the large hardware vendors, such as Meta, are dependent on more titles being released for their headsets, which will help with the marketing and financing of new titles. For these reasons, we and the leading statistics bureaus believe VR games will see growth surpassing 20% in the coming years.

The healthy share price development during the year has stemmed from the successful stealth launch of Ghosts of Tabor. This launch shows the strength of the company’s business model, where it was only responsible for publishing the game. Being responsible for elements of game development or using external financing reduces the company’s operational risk, partly at the expense of operational leverage, as reflected in its gross margin. Despite more expansive growth than the sector thanks to successful games releases, the company is valued at par with other games developers listed on the Stockholm exchange. In Q3 the company has signed a development deal on a VR-title with a leading entertainment franchise, we believe that this shows Beyond Frames strong position in the market.

..with a proven business model