March 3rd, 2008 by Arjan Olsder Posted in Companies & M&A | No Comments »
As part of a radical restructuring plan to get the company back on track, SCI has announced to sack 25% of it’s workforce and cut off 14% of the current running projects.
The reduction in head count will bring the company back to 800 employees. The projects which SCI will abandon are chosen on the basis that SCI doesn’t expect to see enough return on them.
SCI/Eidos will change it’s business model and start working out a studio led strategy where the focus is on core products that drive the main revenues. This means the company is focussing more on successful titles like Tomb Raider, Hitman and Championship Manager.
Within mobile gaming, Eidos has done a lot of acquisitions lately. There will be some movement here as well as all mobile development, production, porting and localisation will move from London to the studio in Montreal. This goes for all other segments in the Eidos New Media unit.
Phil Rogers expects these changed to lead to a cost reduction of 50% for the company. Also he expects to increase the quality of the games. Though not seeking for companies to acquire SCI at the moment, SCI remains open to acquisition talks.
