Key Highlights

  • Contracts signed in FY27 total A$6.2m.
  • About A$5.0m is expected to be recognised as FY27 revenue.
  • A new Dumb Ways title is being developed for a sandbox gaming platform.
  • Contracts are subject to milestone acceptance and termination provisions.

PlaySide Studios Limited (ASX:PLY) provided an update on its External Projects division, reporting several contract signings since the start of FY27 with an aggregate value of A$6.2 million, including extensions and expansions of earlier engagements.

Contract value and timing

Of the A$6.2 million signed to date, approximately A$5.0 million is expected to be recognised as revenue in FY27. The company said the projects began as shorter-run projects and prototypes and were extended, expanded or moved to larger engagements. As is customary, the contracts are subject to milestone acceptance and termination provisions.

New contracts

One contract covers development of a new Dumb Ways to Die title for exclusive release on a leading sandbox gaming platform, which the company said increases exposure of the IP in the PC and console vertical. Two contracts for a large technology company cover AI-enhanced gaming experiences for upcoming hardware and game prototypes and full experiences across multiple hardware platforms.

Pipeline

The company said it is in late-stage negotiations with another client, and noted that projects are starting smaller than in previous years while the work is spread across more clients, against a backdrop of layoffs and restructures at major studios.

Company background

PlaySide develops video games for PC, console, mobile, virtual reality and mixed reality, with a portfolio of about 60 titles. It publishes its own games from original intellectual property and provides end-to-end development services to major studios and technology companies, and has a publishing arm that funds and markets third-party games from smaller independent studios. The company was incorporated in 2011 and is headquartered in Docklands, Victoria.

The release described the outsourced development market as having been difficult in recent years because of layoffs and restructures at major studios, which slowed decisions and deferred investment in new content.

Why This Could Matter

The release separates total contract value from the portion recognised in FY27, and notes that milestone acceptance and termination terms apply. This shows how much of the signed value falls into the current financial year.

Final Thoughts

PlaySide (ASX:PLY) reported A$6.2 million of new External Projects contracts in FY27, about A$5.0 million of which is expected as FY27 revenue.