PlaySide’s Restructure and CFO Retirement Raise Questions on Future Stability

A Challenging Year Prompts Swift Action

PlaySide Studios has delivered a sobering update following a difficult financial year. The company’s FY25 revenue fell 25% to $48.7 million, culminating in an EBITDA loss of $7.4 million compared to a $17.5 million profit the previous year. This sharp downturn exposed vulnerabilities in PlaySide’s business model, particularly its reliance on external contract work and the inflexibility of its workforce planning.

Chairman Cris Nicolli described the year as a “learning curve” that necessitated a rapid and painful restructure. The company reduced headcount by nearly 20%, streamlined its project slate, and refocused its efforts on its original intellectual property (IP) portfolio. While difficult, these moves have positioned PlaySide as a leaner, more focused business ready to capitalize on future opportunities.

Original IP and External Projects – Dual Engines for Growth

PlaySide’s original IP titles remain central to its strategy. The company is advancing key projects including Dumb Ways to Die, Game of Thrones – War for Westeros, and the highly anticipated MOUSE – P.I. for Hire. The latter, a console game developed using the Dumb Ways to Die IP, is set for release early in 2026. Despite a slight delay from the original 2025 target, management remains confident that MOUSE will be PlaySide’s best-selling PC/console title to date and a significant cash generator.

Alongside original IP development, PlaySide is doubling down on its External Projects division (formerly Work for Hire), which has historically provided steady cash flow and covered overheads. CEO Benn Skender highlighted that the outsourcing market is poised for growth as major AAA studios continue to downsize internal teams and outsource more development work. PlaySide is expanding its business development efforts internationally, particularly in North America and Europe, to capture a larger share of this market.

Financial Discipline and Leadership Transition

To support its turnaround, PlaySide raised approximately $8 million through a recent capital raise and Share Purchase Plan, with an expected additional $6 million from the Digital Games Tax Offset program. The company is also benefiting from an extended contract with Meta for the Horizon Worlds ecosystem, providing a stable base of work through to the end of 2026.

Cost savings from the restructure are tracking ahead of targets, allowing selective reinvestment in experienced talent to drive revenue growth. However, the company remains cautious, balancing short-term financial discipline with long-term strategic investments.

In leadership news, CFO Darren Briggs announced his intention to retire in the March quarter of 2026. Briggs has been instrumental in PlaySide’s journey to IPO and financial stewardship. The company has begun the search for his successor to ensure a smooth transition.

Looking Ahead

Despite the setbacks of FY25, PlaySide Studios is entering FY26 with cautious optimism. The combination of a strong original IP pipeline, renewed focus on external projects, and disciplined financial management aims to stabilize earnings and unlock growth. The upcoming launch of MOUSE will be a critical milestone, potentially transforming PlaySide’s market position and financial outlook.