- 01Meta contract termination to reduce FY27 revenue by A$4M.
- 02Cost reduction measures, including potential redundancies, initiated.
- 03FY26 guidance and near-term cash position remain intact.
PlaySide Studios (ASX: PLY) announced a significant FY27 revenue headwind after Meta terminated its Horizon Worlds contracts due to internal restructuring by the tech giant.
Work on these contracts will cease by 31 July 2026.
This is earlier than the previously extended date of 31 December 2026.
The termination is expected to result in a A$4 million revenue decrease for PlaySide in FY27.
Cost Reduction and Business Development Focus
PlaySide has commenced a consultancy process that is likely to result in redundancies.
This move aims to realign its cost base following the contract changes.
The company has also expanded its business development team from four members, up from one, with a focus on rebuilding the external projects pipeline and attracting international clients.
Crucially, progress on Game of Thrones: War for Westeros and the MOUSE: P.I For Hire post-launch roadmap remains unchanged.
The MOUSE: P.I For Hire physical copies are still set for July 2026.
FY26 Outlook and Cash Position Unchanged
Despite the FY27 revenue impact, PlaySide has maintained its FY26 revenue guidance of between A$50 million and A$53 million, with cash balance also steady at between A$14 million and A$15 million.
No changes are reported for the Dew publishing agreement, indicating continuity in that revenue stream.
Previous announcements highlighted the strong performance of MOUSE: P.I. For Hire, including unit sales of approximately 730,000 and an upgraded FY26 revenue guidance of .
However, PlaySide had previously cautioned that early-stage game data was not sufficient for long-term forecasting or updated earnings guidance.
PlaySide Navigates Revenue Shift
The termination of Meta's Horizon Worlds contracts presents a material FY27 revenue challenge for PlaySide Studios, prompting cost-cutting measures.
While PlaySide maintains its FY26 outlook and near-term cash position of A$14–15 million, the company's ability to replace lost revenue through its expanded business development efforts will be key.
The focus is now on how effectively PlaySide can rebuild its external projects pipeline.
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