Australian studio PlaySide is making layoffs after delivering record revenue
Challenging Methods to Die developer PlaySide Studios has announced an undisclosed number of employees will be terminated as part of an “operational reorganization.”
This information follows months after the company reported record annual revenue of $64.6 million AUD ($40.9 million USD).
In a communication to investors, the Australian studio indicated that the reorganization was prompted by delays in executing lucrative contracts. The firm emphasized it remains optimistic about securing new contract work, but acknowledged that the timeline for these potential deals “remains uncertain.”
It asserted that the reorganization is not expected to affect progress on its existing console and PC titles such as MOUSE: P.I. for Hire. Additionally, it committed to supporting current contracts and publishing partners with their ongoing projects.
Notably, PlaySide mentioned that the proposed layoffs are likely to result in cost savings of $4 million AUD to $5 million AUD ($2.5M to $3.2M USD) annually. However, this could also incur an initial restructuring cost of $1.5 million AUD ($950,000 USD).
PlaySide CEO Benn Skender, who just assumed the position in March 2025, stated that the company will offer outplacement support and counseling services to workers who are laid off.
He mentioned that the firm must now focus on its “responsibility to employees and shareholders” to ensure it implements a more resilient business model.
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“We will keep seeking ways to translate successful New IP launches into a healthier balance sheet and a more valuable business,” he added.
Over 70 games co-developed at PlaySide
Founded in 2011, PlaySide has collaborated on over 70 titles alongside major partners including Activision Blizzard, Meta, Netflix Games, and Take Two Interactive.
In its 2024 fiscal report, PlaySide referred to itself as the “largest game development studio in Australia,” employing 360 staff—220 of whom work from three offices across Melbourne and the Gold Coast.
Last year, the firm secured a long-term licensing agreement with Warner Bros to develop two titles using the Game of Thrones IP. It also signed an 18-month work-for-hire contract extension and expansion with Meta.
At that time, PlaySide announced its focus on expanding its portfolio of original properties. It intended to further these ambitions by providing end-to-end development services to major studios, entertainment, and technology companies.
Game Developer has reached out to PlaySide for comment.
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Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over ten years of experience in the gaming industry. His work has appeared in prominent print and digital publications including Edge, Stuff, Wireframe, Global Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events such as GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has served on the judging panel at The Develop Star Awards multiple times and appeared on BBC Radio 5 Live to discuss breaking news.