PlaySide Studios Limited (PLY-ASX), an Australian video game developer and publisher with a portfolio of approximately 60 titles across various platforms including PC, Console, mobile, virtual reality and mixed reality, has been informed by Meta Platforms Technologies, LLC (Meta) of the termination of its outsourced development contracts. Meta cited internal restructuring as the reason for ending the work on the Horizon Worlds social platform, with all associated tasks set to conclude by 31 July 2026. This earlier-than-expected conclusion is projected to result in an approximate A$4 million revenue impact for PlaySide in the 2027 financial year.
This announcement revises an earlier agreement, as the work was previously extended through to 31 December 2026, noted in an ASX announcement from 9 October 2025. Despite the termination, PlaySide’s FY26 revenue guidance remains unchanged, and management anticipates the company’s cash balance at 30 June 2026 to be approximately A$14–15 million. The company has, however, initiated a consultancy process with several employees, likely leading to redundancies, to appropriately realign its cost base, with an update to follow.
PlaySide CEO Benn Skender described the decision as a “counterparty decision,” noting it was not a reflection of PlaySide’s work. He acknowledged the setback to the company’s External Projects pipeline, stating that rebuilding this pipeline is an immediate priority, supported by a recently expanded business development function. PlaySide confirmed that development on Game of Thrones: War for Westeros, MOUSE: P.I For Hire, and its Dew publishing agreement remains unaffected. Skender expressed confidence in the company’s ability to navigate the situation, drawing parallels to a previous restructure that led to the successful launch of MOUSE: P.I. For Hire.
