Insights

PlaySide (ASX:PLY) share price on watch after landmark agreement with video game giant

This game developer has big news…
The post PlaySide (ASX:PLY) share price on watch after landmark agreement with video game giant appeared first on The Motley Fool Australia. –

The PlaySide Studios Ltd (ASX: PLY) share price will be one to watch this week.

This morning the company announced a major agreement and a trading halt.

Why could the PlaySide share price zoom higher?

The PlaySide share price could be on the move later this week after it announced a landmark agreement.

According to the release, the company has signed an early eight-figure (Australian dollars) work-for-hire development agreement with 2K Games. It is a label of leading global publisher Take-Two Interactive Software (NASDAQ: TTWO), which is best-known as the company behind the Grand Theft Auto series.

The release explains that the agreement relates to the production of a forthcoming major franchise. The project will have a development cycle of 23 months, with 12 months of maintenance post launch. The deal is fixed price milestone based without revenue share.

Management advised that developing a strong relationship with 2K Games through quality delivery and partnering is seen as a long term strategic benefit to Playside. It also believes it furthers the company’s credentials as a global player in the marketplace.

Management commentary

PlaySide’s CEO, Gerry Sakkas, said: “This is an extremely pleasing outcome for PlaySide, representing the largest work for hire contract since listing. We are excited to be working with 2K Games, a label from one of the world’s largest Publishers, TakeTwo Interactive Software.”

“Our ability to secure this agreement with 2K Games underlines our position as Australia’s largest publicly listed game developer. We are looking forward to starting work on this project to demonstrate our capabilities in AAA game development on a franchise that we are extremely passionate about.”

Mr Sakkas believes the success of its Age of Darkness: Final Stand game has been the driving force of the deal.

”This deal is reflective of the quality of Age of Darkness: Final Stand which has been the catalyst for companies like 2K Games to recognise the Company’s world class development capabilities,” he added.

Trading halt

The PlaySide share price won’t be going anywhere immediately, though. This morning the company requested a trading halt.

Its request explains: “The trading halt is requested until the earlier of: PlaySide releasing announcements to the market regarding a material transaction and a proposed capital raise; and the commencement of trade on Wednesday, 17 November 2021.”

No details further details have been provided.

The PlaySide share price has almost doubled in value in 2021.

The post PlaySide (ASX:PLY) share price on watch after landmark agreement with video game giant appeared first on The Motley Fool Australia.

Should you invest $1,000 in PlaySide right now?

Before you consider PlaySide, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and PlaySide wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

5 ASX shares in an obscure but booming sector

Why is the Playside Studios (ASX:PLY) share price rocketing 16% today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!