PlaySide Studios Restructures Amid Strong Performance: Layoffs and Future Projects
PlaySide Studios, an Australian game developer, is undergoing significant restructuring, particularly affecting its Work for Hire teams. As layoffs loom, the studio assures that current projects—like VR titles and a Game of Thrones strategy game—will remain unaffected. Despite achieving a record revenue last year, the company aims to optimize costs and navigate upcoming challenges.
Lead: In a surprising turn of events for PlaySide Studios, an Australian developer and publisher, the company has initiated a major restructuring effort as it faces both successes and setbacks in 2024. With around 360 employees reported at the start of the year, the specific number of layoffs has yet to be disclosed. This decision comes on the heels of the studio’s announcement of record annual revenue of AUD 64.6 million (USD 40.9 million) and the promise that ongoing projects, including several high-profile titles, will continue as planned.
Challenges and Changes Unfolding at PlaySide Studios
Recent developments at PlaySide Studios indicate a dynamic yet challenging year ahead. The company is restructuring its workforce primarily within its Work for Hire teams, redirecting efforts to ensure the steadfast delivery of current projects.
Key highlights of the restructuring include:
– **Workforce Adjustments**: Ongoing layoffs primarily impact the non-project specific workforce.
– **Current Project Assurance**: Despite layoffs, PlaySide assures that titles such as Sid Meier’s Civilization VII VR and the upcoming strategy game based on Game of Thrones remain unaffected.
– **Financial Performance**: PlaySide reported record revenues of AUD 64.6 million for the previous fiscal year.
CEO’s Commitment to Support Impacted Employees
PlaySide’s new CEO, Benn Skender, has expressed a strong commitment to supporting employees affected by the layoffs. The company plans to offer:
– **Outplacement Support**: Assistance services for displaced workers to help them find new employment.
– **Counseling Services**: Emotional and psychological support for those transitioning out of the company.
In a formal note to investors, Skender emphasized the company’s obligations to both employees and shareholders as they navigate the restructuring process.
Understanding the Reasons Behind the Restructuring
As detailed in a recent communication, the decision to restructure stems from previous delays in securing new Work for Hire contracts. This realignment aims to optimize costs and enhance PlaySide’s capacity for future original intellectual property (IP) projects.
– **Financial Strategy**: The restructuring is projected to save the company between AUD 4-5 million annually, although it comes with an upfront restructuring cost of AUD 1.5 million.
– **Future Revenue Projection**: PlaySide’s expected revenue for 2025 has been adjusted to AUD 50-54 million, down from the high of AUD 64.6 million recorded in 2024.
Continuing Ambitions in the Gaming Industry
Despite the challenges, PlaySide remains committed to pursuing growth and success. The studio is in ongoing negotiations for several new Work for Hire contracts.
A notable quote from management highlights this commitment:
> “Management is intent on optimizing the Company’s cost base in order to ensure that successful delivery of major Original IP projects from FY26 onward results in high levels of cash flow generation that can support sustainable growth in the business.” – PlaySide
PlaySide’s plans include a range of anticipated titles that aim to amplify their portfolio, including:
– **Game of Thrones Strategy Game**: Tapping into the popular franchise.
– **Console Title from Dumb Ways To Die**: Expanding an already successful brand into new markets.
Conclusion: A Balancing Act for PlaySide Studios
As PlaySide Studios navigates the turbulent waters of restructuring, it faces a delicate balance of maintaining project integrity while optimizing operational costs. This year’s restructuring efforts signal both challenges and opportunities for the Australian developer. With a clear focus on improving their business model and ensuring the success of ongoing projects, PlaySide aims to recover and thrive amidst adversity.
As they move forward, the gaming community and stakeholders will be closely watching PlaySide’s next steps and its commitment to delivering high-quality content while supporting its workforce through a tough transition.
Keywords: PlaySide Studios, game development, restructuring, layoffs, Work for Hire contracts, virtual reality games, Game of Thrones strategy game, industry news 2024.
Hashtags: #PlaySideStudios #GameDevelopment #Restructuring #VideoGames #AustralianGaming #VRGames #GameOfThrones #Layoffs
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