PlaySide Studios (ASX:PLY) was informed by Meta Platforms Technologies that Meta will terminate the company's outsourced development contracts on the Horizon Worlds social platform, with all work expected to conclude by July 31, according to a Monday Australian bourse filing.
The company said management anticipates the revenue impact from the loss of the work will be about AU$4 million in fiscal 2027, while fiscal year 2026 revenue guidance remains unchanged, and the cash balance at June 30 is expected to be about AU$14 million to AU$15 million.
There is no change to the company's development progress on the upcoming title Game of Thrones: War for Westeros, the post-launch roadmap for MOUSE: P.I For Hire or its Dew publishing agreement, the filing added.
The company started a consultancy process with several employees that will likely result in redundancies, with the goal of realigning its cost base, and will provide a further update on the outcome in due course.
The company's shares fell 21% in recent trade and earlier reached their lowest since July 2025.