SCi/Eidos cut 14 projects, still have a flood of shitty games on the way...

[Velorath]

Article here.

SCi to cut 25 per cent of jobs, cancels 14 projects

Production services to move from London to Montreal as part of radical restructuring

SCi, parent company of Tomb Raider publisher Eidos, has said that is plans to cut jobs as part of a radical restructuring plan.

The company plans to operate at a maximum head count of 800, a reduction of 25 per cent, while the board has decided to cancel 14 projects currently under way as they will not generate an acceptable return on investment or are not of sufficient quality.

"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," commented Phil Rogers, CEO of the company.

"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," he added.

The company plans to switch from a centrally controlled development and publishing model to a studio-lead business focusing on its core products – Tomb Raider, Hitman, Championship Manager and Deus Ex.

New media and casual gaming will be fused under the Eidos Play brand, and the group will move its production services – which includes localisation and QA – from London to Montreal to take advantage of the lower cost environment.

The firm says it intends to cut annual operating costs by GBP 14 million by the end of June 2008 at a one off cost of GBP 7 million.

"Our quality has slipped below acceptable standards and, through disappointing game development and working within an ineffective operating structure, we are failing to realise the commercial return our creative ability and our shareholders demand,” said the company. “Our infrastructure is too big and expensive for the scale of the business."

SCi also indicated that it would consider any acquisition offers for the company, although it is not actively seeking offers.
demand,” said the company. “Our infrastructure is too big and expensive for the scale of the business."

As always, this sucks for the people who are loosing their jobs.  To me though, the most interesting part of the story was when I was looking around on the SCi website and saw one press release from late last year stating that they had 25 projects planned for 2008 for the Wii and DS alone.  25 projects and we aren't even getting into their various attempts to reanimate the corpses of the Hitman and Tomb Raider franchises.  Cutting 14 projects out of their lineup doesn't sound like nearly enough when put into that light.

[schild]

Funny thing about DS titles (and Wii titles for that matter since they don't sell for this for 3rd parties) - the margins just aren't there. There's a reason many, MANY smaller companies are making PSP titles either exclusively or along with DS titles.

UMDs have much higher margins and much higher profit potential for third parties.

And those little fucking ROM carts cost a shitton comparatively.

Also, Eidos is a shit brand these days. They need new blood. Badly.

[Velorath]

Funny thing about DS titles (and Wii titles for that matter since they don't sell for this for 3rd parties) - the margins just aren't there. There's a reason many, MANY smaller companies are making PSP titles either exclusively or along with DS titles.

It doesn't help that this was the lineup they were boasting about for the end of 2007:

The titles to be released will also include: Escape from Bug Island on Wii, Cake Mania, Nervous Brickdown, Prism: Light the Way, Toondoku, Operation Vietnam and New York Times Crosswords on Nintendo DS for 2007.

Maybe instead of putting all their money into Kane and Lynch's marketing budget, they should have been hiring good development teams and putting some funding into actually making decent games.

[Azazel]

I want to see Gamespot reskinned with Nervous Brickdown.

[Sky]

Nervous brickdown sounds like someone with shy bowels.

[Simond]

The Cake Mania was a lie?