Forum Topics PLY PLY Leaky Ship
RobW
Added 2 months ago

I see the problem as being far deeper than the news released today. The Meta WFH agreement was extended to December 2025. If not renewed at that time, the balance that WFH and OIP has offered for 3 yrs would be totally out of kilter. To maintain conviction on promising new releases alone is okay, but they have to be a success. They invested an extended time period and associated cost on Age of Darkness. To encounter problems just two days after the official release hardly inspires. Herewith a report on Steam……


Game Director Update: Hotfix Incoming and Community Feedback

Hey everyone, Game Director on Age of Darkness: Final Stand here!


Myself and the team at PlaySide have been reading every single one of your comments, feedback and reviews on the launch. We know there have been a lot of questions, and we really appreciate your patience as we’ve been focused on addressing the issues reported over the last 24 hours. Right now, our priority is resolving the most immediate concerns being raised by the community.


We’re actively working on a hotfix update that looks to address some of the main issues, including game stuttering, the frequency of autosaves and failing to connect to multiplayer games. Beyond that, we’re also planning what future updates could look like. There’s a wide range of ideas on the table - some smaller, some more ambitious - but for now, our focus remains on addressing the feedback you’ve shared.


Some of you have also asked about the launch discount. The reason we have done such a deep discount is to say thank you to everyone who has waited of course, but also to reduce the barrier to entry for as many players as possible. What matters most to us is getting more people playing and enjoying the game we’ve worked so hard on over the past three years.


Your feedback has been, and continues to be, invaluable to us. We’ll keep investigating and addressing the reports coming in. If you have any questions or further concerns, please share them with us here on Steam or in our Discord. Thank you so much for your patience and for being part of this journey with us!


- Ryan

Last edited by Ryan; 17 Jan @ 4:14pm


Let’s wait to hear from Gerry in Feb, but may need to re-think this one. Risk profile changed drastically today and the damage is done.


RobW




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NewbieHK
Added 2 months ago

It highlights the challenges not just on the apparent lumpiness of sales but, just how difficult it is to land a major title that brings in big dollars. Of course this is a speculative buy and as such have held off topping up at this point. I think we may get numerous opportunities during 2025 to do so based on information 2025 will be flat and that 2026 will be a big revenue year. As such, I need to see those cost savings they have indicated actually playing out in the next quarter or two before, considering an additional investment. If they can show they can address costs during reduced revenue periods without impacting on future revenue then, this might indicate management have control of the ship.

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Silky84
Added 2 months ago

Painful downgrade after giving guidance before christmas. However this big sell off presents an opportunity for everyone prepared to ride through the volatility of a business with such lumpy revenue. They have 2 big titles coming up in the next 18 months with mouse and the first game of thrones game- that is likely to create a revenue spike. (At least thats the current investment thesis) Management have states FY25 is a year for investing in order to create the next step up in revenues! For anyone willing to back them this is a buying opportunity.

i topped up in RL this morning

disc- held in RL and SM

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Strawman
Added 2 months ago

Oof, 40% down!

PlaySide’s revised FY25 revenue guidance is a 12 -26% drop from October estimates and a 16 - 22% decline from FY24 actuals.

Certainly significant, and not ideal for what is considered a growth stock.

The main culprit here is the delayed Work for Hire (WFH) contracts. Management flagged in October that new deals were slow to materialize, but they still expected WFH revenue to hold up. Fast forward to now, and those negotiations have dragged out longer than anticipated, leading to an $11m shortfall in expected WFH revenue.

This year was always going to be a development-heavy period, but the timing of new WFH deals shows how sensitive they are to winning work from 3rd parties.

Still a decent cash buffer, thankfully.

This was always going to be a lumpy performer, but I had expected most of the lumpiness to be associated with original IP revenue.

*IF* this is indeed just a deferral of work due to industry wide weakness, this is likely a great buying opportunity for long termers.

But maybe customers just see better partnership opportunities?

I have a small position, but not planning on doing anything for now.

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UlladullaDave
Added 2 months ago

The main culprit here is the delayed Work for Hire (WFH) contracts. Management flagged in October that new deals were slow to materialize, but they still expected WFH revenue to hold up. Fast forward to now, and those negotiations have dragged out longer than anticipated, leading to an $11m shortfall in expected WFH revenue.

I think there's more to it than that. WFH is a low margin business. The caginess the company has wrt what drives EBITDA is probably because they don't want to publicise just how cut throat these outsourced contracts are: If there was big money in being the grunt it wouldn't be outsourced etc. I don't believe that an $11m change in WFH revenue translates to an EBITDA loss of $6m-$10m from previous guidance of a profit of $0-$5m for the simple reason the margin just isn't there to support that explanation.

To my mind, what has happened is the OIP releases have not met their internal expectations and they front loaded a bunch of expenses onto the P&L based on those expectations. That is where the margin is, but it's probably easier to blame delayed contract work than just being too optimistic.

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Strawman
Added 2 months ago

Great point@UlladullaDave - revenue is vanity, profit is sanity!

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mushroompanda
Added 2 months ago

Great thought process @UlladullaDave

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