PlaySide’s FY25 Revenue Falls 25%, NPAT Hits $12.1M Loss

A Challenging FY25 for Australia’s Largest Game Developer

PlaySide, Australia’s largest game development studio, has reported a challenging financial year ending June 2025. Revenue declined 25% to $48.7 million, with original intellectual property (IP) revenue dropping sharply by 45% to $16.7 million. This decline reflects the absence of new major original IP launches during the year and the prior period’s inclusion of significant license fees from the popular Dumb Ways to Die projects.

The company posted an EBITDA loss of $7.5 million, a stark reversal from the prior year’s $17.5 million profit, and a net loss after tax (NPAT) of $12.1 million compared to a $11.3 million profit previously. These losses were influenced by latent staff capacity during work-from-home periods, higher marketing expenses for original IP projects in development, and a $1.7 million restructuring charge.

Strategic Restructuring and Cost Controls

In response to the financial pressures, PlaySide undertook a significant operational restructure in April 2025, reducing its workforce from a peak of 363 to 260 employees. This move aims to lower headcount costs by approximately $5 million annually and improve talent density by focusing on core projects. Several underperforming or non-core projects were closed, including Wedding Planner and Dynasty of the Sands, to streamline the company’s development slate and reduce outsourced and marketing costs.

Despite the restructuring costs, the company maintained tight control over discretionary spending and contractor costs. Work for Hire revenue, which provides a steady cash flow through fixed-price contracts for third-party IPs such as 2K’s Civilization VII VR, remained resilient, contributing $32 million, down only 7% from the prior year.

Capital Raising to Fuel Future Growth

To support its upcoming slate of major game launches, PlaySide completed a $6.6 million placement at $0.20 per share and announced a $3 million share purchase plan. These capital injections bolster the company’s cash position to approximately $15.9 million pro-forma, providing runway for marketing and development expenses related to key titles such as MOUSE – P.I. For Hire, slated for release in FY26.

The company highlighted the strong market anticipation for MOUSE – P.I. For Hire, with Steam wishlists surging from 600,000 to over 1 million, a critical indicator of potential sales success. Additionally, the highly anticipated Game of Thrones – War for Westeros real-time strategy game is scheduled for a 2026 launch, backed by a robust marketing campaign and licensing from Warner Bros./HBO.

Outlook and Industry Context

PlaySide expects FY26 revenue to exceed FY25, driven by new original IP launches and continued work for hire contracts. The company is cautious about providing explicit guidance until closer to the MOUSE launch but remains optimistic about its streamlined operations and project pipeline. The broader gaming industry continues to evolve with strong growth in indie and AA titles, the upcoming console cycle, and expanding virtual and mixed reality markets.

PlaySide’s leadership changes earlier in 2025, including a new CEO and director appointments, signal a renewed focus on agile project management and monetisation strategies. The company aims to leverage its portfolio, including the Dumb Ways to Die brand, which is poised for expansion into new platforms and audiences.