PlaySide signs multiple new External Projects contracts worth A$6.2 million
PlaySide Studios has signed several new External Projects contracts since the start of FY27, with an aggregate value of A$6.2 million. Of that total, approximately A$5.0 million is expected to be recognised as revenue in FY27.
The contracts were foreshadowed at the FY26 results. Each began as a shorter-run project or prototype and has since been extended, expanded in scope or progressed to a larger engagement.
As is customary for External Projects engagements, the contracts are subject to milestone acceptance and termination provisions.
| Measure | Value |
|---|---|
| Aggregate contract value (signed in FY27 to date, including extensions) | A$6.2 million |
| Expected FY27 revenue recognition | Approximately A$5.0 million |
When big ASX news breaks, our subscribers know first
What the new contracts cover
The new contracts span three areas:
- Dumb Ways to Die: developing a new Dumb Ways title for exclusive release on a leading sandbox gaming platform. It is complementary to the recent launch of Dumb Ways to Build, will increase the exposure of the IP in the PC/Console gaming vertical, and has the potential for additional spin-off or post-launch live ops work.
- Gaming experiences: developing gaming and interactive experiences that leverage AI to enhance the user experience for the upcoming hardware of a large technology company.
- Gaming prototypes and titles for multiple devices: development of several game prototypes and full game experiences for a large technology company, covering multiple hardware platforms.
How External Projects works for investors
External Projects is the division through which PlaySide provides game development services to other studios and technology companies, rather than building only its own published IP.
Milestone acceptance means a client must approve defined stages of work, and termination provisions allow contracts to be ended under agreed terms. Revenue recognition is therefore expected to follow delivery, rather than arrive as a single guaranteed sum.
Spreading work across a number of clients also means PlaySide relies less on any single relationship, according to management.
The Meta contract termination removed roughly A$4 million of expected FY27 revenue, which is part of why management has expanded its business development team and pushed to diversify the External Projects client base.
CEO outlook: smaller starts, wider client base
Chief executive Benn Skender, PlaySide Studios CEO, framed the contract wins against a difficult industry backdrop.
PlaySide’s FY26 results captured that backdrop, with External Projects demand soft while Original IP revenue rose 108% to $34.7m and the company swung to a $5.4m profit.
Benn Skender, PlaySide Studios CEO
“It’s been a tough few years for outsourced development providers in the games industry. Layoffs and restructures at major studios have slowed decision-making and deferred investment in new content…”
He also noted that projects are starting smaller than in previous years. Management pointed to several signals:
- Late-stage negotiations to sign work with another client.
- Active discussions with several major game studios about larger engagements.
- The opportunity to expand scope on each engagement as budgets recover.
“We believe that leaves us well placed to grow External Projects as investment in content returns,” Skender said.
For investors, the update points to a base of expanding engagements across multiple clients. Outcomes will still depend on milestone acceptance and the termination provisions attached to the contracts.
Don’t Miss the Next Tech and Gaming Breakout
Join 20,000+ investors getting FREE breaking ASX news within minutes of release, complete with in-depth analysis already done. Click the “Free Alerts” button at Big News Blast to receive tech and gaming updates the moment announcements land, and stay ahead of the market.