SCi Losses Lead To Restructuring News

Despite announcing Battlestations: Pacific today, Eidos' parent company SCi Entertainment has today revealed massive restructuring, following a six week review of the business led by newly installed CEO, Phil Rogers.

A major part of the restructuring is changing to a more "studio-led" business, one that'll now be driven by production in Eidos' Montreal studio and focusing on the publisher's key brands such as Tomb Raider, Hitman, Championship Manager, and Deus Ex - though 14 titles have been cancelled in today' move. The company has also aims to lose up to 25% of its workforce, and transfer Quality Assurance to Canada. Some of the changes will have an effect by the middle of the year, with SCi announcing that its operating costs should be driven down by around £14 million by June.

SCi also announced the launch of a new label, Eidos PLAY, bringing together the publisher's casual and new media arms.

Making today's announcement, 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."

He continued, "'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."

2008's line up of titles from Eidos include their big hope, Tomb Raider: Underworld, together with the likes of Age of Conan: Hyborian Adventures, and Monster Lab.

News of the restructuring comes as SCi Entertainment revealed six-month losses of over £81 million, a dramatic rise over the same period twelve months ago, when the company's losses stood at £18 million. Despite going ahead with the restructuring, today's statement also makes it clear that there is no certainty that the additional funding being sought by SCi will be awarded, and that a reasonable offer for the company by outside parties would be looked at.