AR/VR Talent Development and Commercialization by 株式会社クロスリアリティ and VRIA Kyoto

「In terms of business performance, the company undertook commissioned development of industrial simulators, metaverse systems and systems using AI. In the AI field, it steadily secured recurring projects from existing customers, resulting in higher revenue year on year. In the AR/VR field, the subsidiary 株式会社クロスリアリティ, which offers AR/VR courses, secured projects from educational institutions and increased revenue. However, the AR/VR segment as a whole reported lower revenue and profit year on year due to the decline following large projects in the previous year.」

「In addition, the company is actively expanding reskilling support through its subsidiary 株式会社クロスリアリティ and generative AI training for new graduate engineers, promoting career development support in cutting-edge technology fields.」

「The AR/VR business is considered a key pillar for branding the company's cutting-edge technology fields, including through reskilling support provided by its subsidiary 株式会社クロスリアリティ and the positive impact on engineer recruitment from being able to offer careers in cutting-edge technology fields. The company is currently developing its organizational structure with the aim of strengthening its core strength in planning and proposals.」

「During the first six months of the current consolidated fiscal year, revenue remained strong on orders for industrial AR/VR content development, educational systems using the metaverse for educational institutions, business efficiency systems using AI, and 360° VR tours. The AR/VR specialist training program provided by the subsidiary 株式会社クロスリアリティ allows participants to use the Ministry of Health, Labour and Welfare's subsidy for specialized practical education and training and human resources development support grants. Use of the program contributed to training the company's engineers, while also attracting external students. As the AR/VR business expanded steadily, it achieved its first return to profitability since the business began.」

「During the first quarter of the current consolidated fiscal year, the company secured orders for industrial AR/VR application development, development of business automation systems using AI, development of metaverse spaces, and 360° VR tours for educational institutions. The AR/VR specialist training program provided by the subsidiary 株式会社クロスリアリティ allows participants to use the Ministry of Health, Labour and Welfare's subsidy for specialized practical education and training and human resources development support grants. Use of the program contributed to training the company's engineers, while also promoting the recruitment of external students. As a result, revenue from the AR/VR business was ¥82 million, up 106.2% year on year, and the segment loss was ¥5 million, compared with a loss of ¥26 million in the same period of the previous year.」

「During the consolidated fiscal year, the company secured orders for application development, metaverse projects for educational institutions, metaverse projects for companies such as exhibition and corporate information-session content, 360° VR tours, AI-related commissioned development and AI training. Revenue increased year on year, and the loss narrowed.」

「During the cumulative consolidated period of the third quarter, we secured orders for application development, metaverse services for educational institutions, metaverse services for companies such as exhibitions and corporate information sessions, 360° VR tours, AI-related contract development and AI education. Revenue increased year on year, and the loss narrowed.」

「Against this backdrop, the company has conducted sales activities, including exhibiting at major trade shows, to introduce its products and services and raise awareness, while working to identify and analyze market trends and the issues faced by individual companies. These activities led to an increase in inquiries. During the first six months of the current consolidated fiscal year, the company secured orders for application development, metaverse projects for educational institutions, metaverse projects for companies such as exhibition and corporate information-session content, and 360° VR tours. Revenue increased year on year, and the loss narrowed.」

「Against this backdrop, the company has conducted sales activities, including exhibiting at major trade shows, to introduce its products and services and raise awareness, while working to directly identify and analyze market conditions and the issues faced by individual companies. It also recognizes that inquiries have remained firm through these activities. During the first quarter of the current consolidated fiscal year, the company secured orders for application development, VR content for educational institutions, 360° VR tours and event content in virtual spaces. Revenue increased year on year, and the loss narrowed.」

「At VRIA Kyoto, operated by 株式会社クロスリアリティ, a consolidated subsidiary, the company is training its technical employees as personnel to be dispatched as VR engineers, with the goal of developing 300 VR engineer staffing personnel over 3 years. It is also considering the development of in-house products and undertaking commissioned development, while promoting active collaboration within the group to establish systems for the sale and development of content and platforms. Through these initiatives, the company aims to achieve the top market share in VR engineer staffing within 3 years and is actively working to expand revenue.」

「During the nine-month period ended 31 December, the Company secured orders for VR content for educational institutions, 360° VR tours, event content in virtual spaces and show-room tours using MR and VR. Revenue increased year on year and the loss narrowed.」

「In the AR/VR solutions business, the company initially planned to sell EON Reality's EON Platform and a broad range of products, including other hardware. However, EON Reality withdrew from hardware sales following a change in its business model, and its localization of the EON platform and products for Japan, including Japanese-language support, usability improvements and specification changes, was delayed. As a result, the company is currently reviewing the business plan for the AR/VR business as a whole, including the subsidiary concerned. Going forward, the subsidiary will prioritize training the company's technical employees at VRIA Kyoto (VR Innovation Academy Kyoto), which trains AR/VR engineers, and will pursue differentiation by rapidly developing VR engineers.」

「The AR/VR business is engaged in initiatives addressing the Fourth Industrial Revolution, represented by AR (augmented reality), VR (virtual reality) and AI (artificial intelligence), with the objectives of training AR/VR and AI engineers; selling and developing AR/VR content and platforms sought by companies and educational institutions; conducting research into AI technologies under the direction of the institute director, a leading researcher in cutting-edge AI and a data scientist; and developing in-house products, technologies and services and undertaking commissioned AI development by drawing on engineers' expertise developed through the technical staffing business. During the first quarter of the current consolidated fiscal year, interest in the metaverse increased as restrictions on movement and other measures were introduced in response to the COVID-19 pandemic, and the company secured orders, mainly from educational institutions, for VR tours and communication tools using virtual spaces. In addition, VRIA Kyoto (VR Innovation Academy Kyoto), which trains AR/VR engineers, launched an AR/VR specialist training program and enrolled students. In AI-related initiatives, the company launched an AI designer course and enrolled students.」

「The AR/VR business is engaged in initiatives addressing the Fourth Industrial Revolution, represented by AR (augmented reality) and VR (virtual reality), with the objectives of training AR/VR creators and selling and developing AR/VR content and platforms sought by companies and educational institutions. The business secured orders mainly for VR video production. At 株式会社クロスリアリティ, a consolidated subsidiary, VRIA Kyoto (VR Innovation Academy Kyoto) opened in October 2020.」

「The AR/VR business is engaged in initiatives addressing the Fourth Industrial Revolution, represented by AR (augmented reality) and VR (virtual reality), with the objectives of training AR/VR creators and selling and developing AR/VR content and platforms sought by companies and educational institutions. The business secured orders mainly for VR video production. In 株式会社クロスリアリティ, established in April 2019 as a consolidated subsidiary, VRIA Kyoto (VR Innovation Academy Kyoto) opened in October 2020.」

「At 株式会社クロスリアリティ, which was established in April 2019 as a consolidated subsidiary, VRIA Kyoto (VR Innovation Academy Kyoto) opened in October 2020.」

「Going forward, at VRIA Kyoto, which opened in October 2020, we will begin training creators and work to establish systems for the sale and development of content and platforms.」

「VRIA Kyoto was scheduled to open in May 2020, but the opening date is under consideration due to the postponement of the arrival in Japan of EON Reality instructors resulting from travel restrictions, delays in the delivery of AR/VR equipment and other factors.」

「At 株式会社クロスリアリティ, which was established in the previous consolidated fiscal year, preparation expenses were incurred for the full-scale launch of the business.」

「We believe that expanding the IT field, one of our strengths in the Engineer Staffing Business, will be an important growth driver going forward. Based on our recognition that developing engineers capable of addressing the Fourth Industrial Revolution, including AR/VR, is particularly important, we established the subsidiary 株式会社クロスリアリティ in April 2019 to train AR/VR creators and, additionally, to sell and develop AR/VR content and platforms required by companies and educational institutions. Going forward, we will open the VR Innovation Academy, begin training creators, and work to establish a structure for selling and developing content and platforms.」