Mr. Jason Bailey reports

EAST SIDE GAMES GROUP ANNOUNCES COST REDUCTION INITIATIVES TO STRENGTHEN FINANCIAL POSITION

East Side Games Group Inc. has taken a series of cost reduction and operational restructuring initiatives designed to strengthen its balance sheet, improve free cash flow and position the company for sustainable, profitable operations.

Key highlights:

• Work force reduction: The company has reduced its work force by approximately 30 employees, representing approximately 32 per cent of its total head count, effective Sept. 1, through a combination of layoffs and furloughs. With its streamlined work force, the company is positioned to operate more efficiently, in line with its renewed focus on profitability.
• Annualized cost savings: The work force reduction, together with related operational efficiencies, is expected to generate approximately $3.5-million in annualized cost savings, with the majority of savings expected to be realized beginning in fourth quarter 2026. This is in addition to the $4-million in annualized cost savings implemented year to date.
• Portfolio rationalization: The company is reprioritizing its development portfolio, including the pausing or scaling back of certain titles and projects, allowing the company to concentrate resources on its highest performing and highest potential live games.
• Partner payment restructuring: The company is restructuring payment terms with certain development and publishing partners to better align cash outlays with project performance and cash flow generation.

"These are necessary decisions. Our objective is to build a leaner, more focused organization that can deliver consistent profitability for our shareholders while continuing to invest in the titles and franchises with the greatest long-term potential," said Jason Bailey, chief executive officer of East Side Games Group.

About East Side Games Group Inc.

East Side Games is a leading developer and publisher of mobile games based in Vancouver, Canada, known for creating immersive experiences built around some of the world's most beloved entertainment franchises.

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