Playside is Australia’s largest independent video game studio, developing both their own titles while running a contracting work-for-hire book. They have partnerships with leading global studios with around $16m worth of contracted work which is expected to grow. They also have their own pipeline of new titles with a number of near-term releases, 12 are scheduled in the next year, to further boost revenue. Given they are the premier local game development company, they attract the best talent in the Australian market. With their strong work-for-hire book and relationships, they are also a natural acquisition target from the likes of Activision and 2K Games, even Microsoft’s head of Xbox has been talking up the need for consolidation in the industry this month. The market is currently discounting cash-losing tech businesses which will provide an attractive entry point into the stock if the slide continues.
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