Video game developer PlaySide Studios (ASX: PLY), the studio behind popular games like “Dumb Ways to Die” and “Age of Darkness: Final Stand”, has signed a multi-game license deal with Warner Bros. Interactive Entertainment, a subsidiary of Warner Bros. Discovery, Inc.
The agreement grants PlaySide access to a well-known intellectual property, allowing the development of two PC/Console game titles. The development timelines align with PlaySide’s existing strategy for creating titles based on licensed intellectual property for the PC/Console platform.
PlaySide CEO Gerry Sakkas commented, “This agreement is a groundbreaking moment for PlaySide, the culmination of years of effort building relationships with Hollywood studios and investing in our PC and Console development expertise. It is also consistent with our plans to develop larger titles. We are huge fans of the IP we are working with and are thrilled to be entrusted with the task of bringing it to life for other fans.”
PlaySide, recognised for both original intellectual property and comprehensive game development services, has collaborated with industry giants like Activision Blizzard, Meta, Netflix Games, and Take Two Interactive.
Under the agreement, PlaySide will make multiple license payments to Warner Bros. Interactive Entertainment during the development phase, followed by a royalty structure based on the games’ revenue throughout the agreement’s five-year term from the release of the second title.
Sakkas emphasised, “We are proud to be partnering with Warner Bros. Interactive Entertainment, which has a longstanding history of supporting the extension of its franchises such as Batman into video games and has enjoyed recent success with the likes of Hogwart’s Legacy. I look forward to sharing more details with you soon.”
In its Q1 FY24 report, PlaySide reported a record quarterly revenue of $15.5 million, reflecting a substantial 140% increase compared to the previous year’s $6.5 million. Original IP revenue reached $6.6 million, with notable developments including the initiation of their Dumb Ways to Die VR title for Meta and the production of the PC/Console title Project Phoenix. During an AGM address, Sakkas projected a robust growth of approximately 50% in revenue compared to the previous record year.
PlaySide’s optimistic forecast positions the Company for EBITDA and operating cash flow positivity in the December quarter of FY24, with revenue expectations in the range of $55-60 million. This financial strength lays the groundwork for increased investment in original IP titles in the latter half of the fiscal year, extending into FY25.
Development on the first title under the Warner Bros. Interactive Entertainment agreement is set to commence immediately, with a joint announcement detailing the intellectual property and game specifics anticipated in the first half of 2024.
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