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SCi Kills 14 Projects, Cutting 25 Percent of Staff
Posted by Brian Crecente at 1:53 AM on March 1, 2008
SCi, developers of Tomb Raider, Hitman and Deus Ex, have canceled 14 of their projects and plan on laying off 200 people and cutting their annual operating costs by £14 million as part of a company restructuring plan meant to get SCi back on track.
"Following our business review over the last six weeks, we are initiating a clear action plan based on three fundamental strands of activity: a radical change in our structure to a studio-led business, a top to bottom programme of product improvement and efficiency and a considerable cost reduction plan," Phil Rogers, Chief Executive of SCi Entertainment Group said, in a prepared statement. "To get SCi on track we have to act rapidly and effect change quickly. We must allow the world-class people that we have within the Group to focus on strong, profitable titles which will create the value our shareholders deserve."
A chief part of that plan is a fundamental change to the way the company does business with SCi shifting from the current centrally-controlled development and publishing model to a studio-led one, similar to the labels model that EA moved to last year.
Under the new structure, SCI would have studios based around "cornerstone products" like Tomb Raider, Hitman, Championship Manager and Deus Ex. The company is also creating an Eidos PLAY studio which will "fuse together casual and new media resources." Finally, production services will form part of the studio group and be relocated to Montreal from London.
I blame the Wii... well that and a company that has essentially been living off of three franchises for nearly two decades.
Business review and half-yearly financial report for the six months ended 31
December 2007
COMPANY TO BE RE-STRUCTURED
SCi Entertainment Group plc ('SCi' 'the Company' or the 'Group'), today announces a group re-structuring plan following its business review and its interim results for the six months to 31 December 2007.
The business review led by new Chief Executive, Phil Rogers, has decided on the following actions:
Fundamental change in business structure:
* SCi's business structure will be significantly changed from a centrally controlled development and publishing model to a studio-led business focused around cornerstone products, such as Tomb Raider, Hitman, Championship Manager and Deus Ex.
* Creation of Eidos PLAY to fuse together casual and new media resources to attack growing markets.
* Flexible and efficient approach to distribution.
Product improvement initiatives started:
* Cancellation of 14 projects which the Board considers are unlikely to generate an acceptable return on investment or are not of appropriate quality.
* Studios focusing on product innovation and delivery of high quality games.
* Production services to form part of the studio group, relocating to Montreal from London.
Cost reduction plan:
* New business structure targeted to operate with a maximum of 800 people, a reduction of 25% from current headcount.
* Annual operating costs to be cut by £14 million by the end of June 2008 at a one-off cost of £7 million
Phil Rogers, Chief Executive of SCi Entertainment Group said, 'SCi is in need of immediate change.
'Following our business review over the last six weeks, we are initiating a clear action plan based on three fundamental strands of activity: a radical change in our structure to a studio-led business, a top to bottom programme of product improvement and efficiency and a considerable cost reduction plan.
'To get SCi on track we have to act rapidly and effect change quickly. We must allow the world-class people that we have within the Group to focus on strong, profitable titles which will create the value our shareholders deserve.
'I am confident our staff share this vision and excitement for the future, and determination to build a working environment where our innovation and creativity can be commercially realised.'
Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
L_K_M
Posted 8:20 PM 3/3/08
@ReginaldTheSeventySecond: Probably true. I really wish somebody would make a new Carmageddon, with all the over-the-top violence, the great car destruction (ripping your car in half is still something I haven't seen in any other game), and the great driving physics. Who could take on the franchise? Bug Bear, perhaps? Or maybe Bizarre Creations could try their hand on something less serious...
L_K_M
diodegrey
Posted 8:20 PM 3/3/08
@gaijira: i was confused by that too. those games were developed by 3 entirely different companies
diodegrey
Rebelphoenix83
Posted 8:20 PM 3/3/08
@cxmnky: I played it and didn't like it. Soooo that about covers it...
Rebelphoenix83
ReginaldTheSeventySecond
Posted 8:20 PM 3/3/08
@L_K_M: It's better this way, if they go bankrupt, the rights to the series can be freed from their evil clutches. Eidos needs to be freed as well.
ReginaldTheSeventySecond
Kohath
Posted 8:20 PM 3/3/08
I guess that beats cutting 14 projects and killing 25% of the staff.
Kohath
cxmnky
Posted 8:20 PM 3/3/08
@Rebelphoenix83:
Did you even PLAY the last two tomb raiders? While not masterpieces, most people said that they were pretty darn good...a definite improvement over the later Core offerings. If you've played it and hated it, fine. But nothing annoys me more than people badmouthing a game that they haven't even looked at simply because they think everyone else will think they're clever for doing it.
cxmnky
snakepliskin
Posted 8:20 PM 3/3/08
As long as i get the next hitman, i care not.
snakepliskin
Rebelphoenix83
Posted 8:20 PM 3/3/08
In other words, "we are going to try not to make the next tomb raider complete shit."
Rebelphoenix83
GiantEnemyCrab
Posted 8:20 PM 3/3/08
Good, Eidos, die a slow, painful, death.
GiantEnemyCrab
gaijira
Posted 8:20 PM 3/3/08
"SCi, developers of Tomb Raider, Hitman and Deus Ex, have canceled..."
gaijira
Brian Crecente
Posted 8:20 PM 3/3/08
@gaijira: I didn't say they did.
Brian Crecente
gaijira
Posted 8:20 PM 3/3/08
Crecente, SCi didn't develop any of those games. They are the parent company of Eidos, which *published* the titles. There is a difference (despite what some publishers would have you believe).
gaijira
GPman
Posted 8:20 PM 3/3/08
They are just making room for Carmageddon using Burnout Paradise's engine! :) That would be sweet actually..hmmm.
GPman
jeremiahbritt
Posted 8:20 PM 3/3/08
SCi's best game will always be Kingdom o' Magic. I loved that game to death, even bought another copy of it a year ago that I haven't gotten a chance to try and install on my Vista machine yet.
[en.wikipedia.org]'_Magic
jeremiahbritt
TurtleSoup
Posted 8:20 PM 3/3/08
Ha ha... that's like I'm going to wear the clothes EA likes and bend over in submission and anticipation and hope... I bet their stock price goes up slightly... it would be funny if EA said no... but they have Tomb Raider and Hitman etc....
TurtleSoup
SAKY
Posted 8:20 PM 3/3/08
@el_rezzo: I demand notification of internet sarcasm dammit! lol
SAKY
BlackIceJoe
Posted 8:20 PM 3/3/08
Great now EA is going to buy SCI too just like they are trying to buy Take 2.
BlackIceJoe
BlackIceJoe
Posted 8:20 PM 3/3/08
Next thing you know EA will try to buy this compay too.
Just like they are trying to get Take 2.
BlackIceJoe
L_K_M
Posted 8:20 PM 3/3/08
Oh noes! That probably means no new Carmageddon! Sad!
L_K_M
Americo
Posted 8:20 PM 3/3/08
Those are are some low stock prices. Time to start investing.
Americo
Cchrist
Posted 8:20 PM 3/3/08
Hey it's ok with me as long as deus ex 3 is stil coming!
Cchrist
sitsalot
Posted 8:20 PM 3/3/08
kane + lynch sold respectibly. pretty sure it hit the 1 million mark months ago.
which is why a sequel is already confirmed.
sitsalot
new_pornographer
Posted 8:20 PM 3/3/08
Didn't ION STORM develop Deus Ex?
new_pornographer
Tepoz
Posted 8:20 PM 3/3/08
I agree, Kane and Lynch was a PR nightmare that pushed the company over the edge. Looking at their history though, not much you can say about it: [games.sci.co.uk]
Tom Raider holds as much franchise power as Sonic The Hedgehog holds nowadays. The time for a "great" Hitman game was during the movie's release and Dues Ex has been relegated to hush whispers (good and bad) in PC gaming legend.
Tepoz
el_rezzo
Posted 8:20 PM 3/3/08
@SAKY: He was obviously being sarcastic. It's like blaming Microsoft for the Iraq War, or the internet for the current state of poetry.
If SCi can get some good games out they will make some good money in return.
el_rezzo
Mohrdikai
Posted 8:20 PM 3/3/08
Only Carmageddon 4 can save SCI now.
Mohrdikai
hunter8man
Posted 8:20 PM 3/3/08
I blame it on Kane and Lynch. They pushed the hell out of that game, and no one bought it. At least they still have Hitman.
hunter8man
SAKY
Posted 8:20 PM 3/3/08
@DaiMacculate: I'm not one to assume. How could you fault the Wii if you ignore it, technically it would be SCi's fault.
SAKY
sitsalot
Posted 8:20 PM 3/3/08
they stink, its time for a change. however i have to say im scepetical of companies creating a "casual department" or whatnot. they might end up dissapointed with the results and the sales of these type of products.
sitsalot
DaiMacculate
Posted 8:20 PM 3/3/08
@SAKY: Maybe he means the fact that they've largely ignored Nintendo in recent years; understandable because they've made they're bread and butter on PS1/2 games.
I took it as sarcastic, though not about the milking franchises part, that I don't think anybody can argue with.
DaiMacculate
SAKY
Posted 8:20 PM 3/3/08
Brian, your take on why you fault the Wii?
I can't argue with them sitting on the same frachises(that suck!)
SAKY
Prinnygeddon!
Posted 8:20 PM 3/3/08
Their QA department will be sorely missed, some nice people in there.
Prinnygeddon!
MKS
Posted 5:25 AM 6/3/08
SELL YOUR IPS.
SELL TOMB RAIDER to Ubisoft for a ridiculous amount of money, keep your key staff and invest in new IPs.
Ubi can make a killer Tomb Raider and might have a chance as reviving the IP from a long, long, long strain of painful iterations that would otherwise leave the IP for dead.
Profit from someone else's success and use that as a jumping board into a more secure future.
MKS
swamptrunk
Posted 5:25 AM 6/3/08
deus ex is one of my top 5 games of all time.
swamptrunk