RSS Feeds
|
US Edition
Babblebaby
|
Defamer
|
Gizmodo
|
Kotaku
|
Lifehacker
French Atari parent Infogrames wants to purchase Eidos parent SCi, and has already extended it a "financially disciplined" offer, Infogrames revealed today via a regulatory announcement.
However, says Infogrames: "The SCi Board has declined, at this stage, to entertain Infogrames' offer."
SCi, the parent company of Tomb Raider publisher Eidos, got a cash injection from its investment buddies at Warner Bros., the company announced today. The $US120 million bailout is good news for SCi, but not so much for Eidos, as 1UP writes today that "sources have informed 1UP that Eidos's entire PR, marketing, and sales department has been laid off as part of the deal with Warner Bros." Yikes! That must be the translation of SCi CEO Phil Rogers "I want more distribution muscle in North America" statement.
Eidos' parent company announced earlier this year that it would be laying off 25% of its staff and killing fourteen projects, focusing on "cornerstone" titles like Tomb Raider, Hitman, Championship Manager and Deus Ex.
Layoffs at Eidos in Light of Warner Bros. Deal? [1UP]
Lara Croft creator SCi gets cash boost [Reuters]
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.
Thanks to a shaky US economy, global stocks are taking a swan dive. Doesn't affect you? Maybe not directly, but remember, platform holders and publishers are almost all publicly-held companies. And surely you care about them, at least in an impersonal, "oh, that's a shame" kind of way. Anyways, in the wake of big falls in the US, Japanese and European markets, the following games companies have all lost a sizeable pile of cash: Ubisoft (down 11.5%), Sony (down 3.5%), Microsoft (down 3%), Take-Two (down 3%) and SCi (down 7.8%). Think of all those generic sequels and hardware colour variations, lost!
Worldwide Stock Dive Hurts Publishers [1UP]
SCi Entertainment Group PLC, publisher of Tomb Raider, announced it won't turn a profit. The company's stock is at an 18 year low as it's in talks with potential investors interested in taking over the company. The company itself doesn't believe it will be sold for its full value. Huge European bank ABN AMRO has this to say about SCi Entertainment:
Management credibility is rock bottom, given heavy use of questionable provisions, failure to achieve release targets, at a time when market is booming.
Ubisoft confirmed today that they were at one time interesting in picking up Lara Croft publisher SCi, but are now totally over her the company and want nothing to do with purchasing it.
"Ubisoft has no intention to make an offer and will not make an offer on SCi." Ubisoft reps told Thompson Financial News. Ouch, sounds like someone got hurt.
Ubisoft Ends Interest in Acquiring SCi [Gamasutra]
With SCi on the market, Ubisoft seemed a good fit for a buyer. Mainly because, well, they're not EA. Turns out they're not that interested, however, with a Ubi rep telling the Financial Times:
We are not in discussion with SCi Entertainment any more than we are with any other company in the industry.Instead, the mysterious, unnamed Ubisoft rep believes Time Warner will make a move for the house of Lara.
British publisher SCi (ie Eidos) have let the London Stock Exchange know that someone's made an offer to purchase them they (most likely) can't refuse. They've even released a statement, which reads:
Following the recent speculation in the press, the Board of SCi Entertainment Group confirms that it has received an approach and as a result has entered into extremely preliminary discussions regarding a possible offer for the Company.
Sure, loads of British people aren't happy with the PS3's price. They get fucked badly enough on console prices as it is, let alone staring a £425 (USD$860) price-tag in the face. Time for some British retailers and publishers to speak out. First up is Duncan Cross, who runs the games section for giant supermarket chain Asda:
I think for us and for Asda's customers there's no doubt that we'd like to have seen some price movement on PS3. The US have got a cut and we've got the games bundle but it's just not the same. I think the console needs an extra something to really get it up to full speed.
