PlaySide Studios cuts staff and faces NFT rug‑pull backlash

PlaySide Studios told investors on 28 May that it will cut an unspecified number of developers as part of a restructuring that should save $2.5‑$3.1 million, even though the process will cost an additional $954,000 up‑front【1】. The move follows a “prolonged period with no new contract signings” and comes as the company revises its FY25 revenue outlook down to $31.7‑$34.2 million from an earlier $39.3‑$43.1 million range【1】.

The restructuring adds to a growing controversy over PlaySide’s NFT venture. In August 2024 the Melbourne‑based studio quietly cancelled “Bean Land,” the next title in the viral Dumb Ways to Die series, after three years of development. To fund the project it sold NFTs that raised $8.4 million, with some tokens priced as high as $1,300 each【2】. When the game was pulled, no refunds were offered, leaving buyers with tokens that fell to their nominal floor price. One investor reported a loss of $44,000 (about $61,000)【2】.

PlaySide’s dual challenges expose a tension in its business model. The company, which boasts collaborations with Disney, Pixar, Warner Bros and Nickelodeon, relies on both traditional work‑for‑hire contracts and speculative crypto‑based financing. The layoffs target its “non‑project specific” workforce, suggesting the studio is trimming the part of its operation that does not generate immediate revenue【1】. Meanwhile, the NFT fallout has eroded confidence among investors who expected the tokens to serve as playable avatars in the cancelled game【2】.

Both the cost‑saving measures and the NFT debacle highlight the risk of mixing conventional game development with high‑risk crypto fundraising. As PlaySide seeks to convert successful original IP launches into a stronger balance sheet, the unresolved question is whether its future projects will attract stable contracts or continue to depend on volatile token sales that could trigger further investor backlash.