Notice on development of large-scale projects by our subsidiary
IGNIS LTD. announces that at the board of directors meeting held on February 27, 2018, we decided to accelerate the development of Virtual Live Platform “INSPIX” by our subsidiary Pulse. Inc, and to start working towards attraction of famous IP and production of new IP and the overseas expansion on a full-scale.
1．Purpose of the project
Recently, the global market size of AR (Augmented Reality) and VR (Virtual Reality) is expected to reach over 18 trillion yen in 2021 (Note 1). Against this backdrop, we are aggressively investing in new businesses, such as the VR business, as a medium-to long-term growth genre. In the VR business operated by Pulse. Inc, we started developing the Virtual Live Platform “INSPIX” last year to perform live concerts in VR space (Note 2). Recently, in the Tokyo metropolitan area, there has been talks about the “Year 2016 Problem”. Theaters and event venues are closed due to renovations, and the shortage of venues is accelerating.
In these circumstances, the Virtual Live Platform “INSPIX” is designed to enable many VR celebrities to hold real time concert to audiences around the world without suffering from such a shortage of venues. The aim is to enable users to participate the concerts in their homes without going out. In addition, we have decided to expand our business into China and North America in order to realize a Virtual Live Platform that can be utilized by many VR celebrities both in Japan and around the world.
1) Source: International Data Corporation Japan, Inc. (Chiyoda-ku, Tokyo)
2)”INSPIX” is pendinga.
2．Overview of the new project
(1) Content of the new project
We are working on planning, development, and operation of a Virtual Live Platform “INSPIX” that can be enjoyed instantly from anywhere in the world and creates interactive experiences only the Virtual live can provide as a new music experience that has never been seen before.
(2) Outline of Service Provider
|Company name||Pulse Inc.|
|Representative||Representative Director, Qian Kun|
|Founded||November 4 , 2016|
|Head office||Shibuya-ku, Tokyo|
|Shareholder||IGNIS, Yasushi Akimoto, Yutaka Matsuo, DaiGo and other|
|Business details||Plan, develop and operate VR contents, etc.|
(3) Amount and details of the special expenditure for the commencement of the project;
Based on the assumption that the medium-term business plan, which targets 15 billion yen in consolidated net sales and 6 billion yen in consolidated operating income for the fiscal year ending September 2020, will be achieved, we plan to spend a total of 5 billion yen by 2021 on personnel expenses related to the hiring of human resources in Japan and overseas, investment in the expansion of content such as the establishment of overseas bases and the construction of studios, and advertising expenses for attracting customers.
Date of resolution of the Board of Directors: February 27, 2018
Date of launch of the service: Planned to be launched in 2018
The impact of the project on the consolidated financial performance for the fiscal year ending September 2018 is considered to be minor, but it is expected to contribute to the improvement of the performance of our Group over the medium to long term.
For more information about the project, please refer to the ʻNotice of Virtual Live Platform “INSPIX”ʼ published today.