3DO bouncing back?

California-based developer and publisher The 3DO Company has today announced that its turnaround plan is nearing completion, thanks to a $10 million asset-based loan from IIG Capital and the recent success of High Heat Major League Baseball 2004.

"We are emerging again as an operating company and have passed through some critical stages," said Trip Hawkins, chief executive officer, The 3DO Company. "We have proven that we can make and deliver quality, best-selling games on schedule, with more to come. Despite challenging market conditions, we expect that new product releases will drive revenue up and close the gap on our spending levels. Our revenues are recovering, margins have improved, and spending levels are much lower than before. We believe that market conditions should continue to improve throughout the year as more hardware is sold and as we get closer to Christmas. More routinely in the future when a game does well, it will mean good profits for us, and even in a tough quarter our spending is low enough that we can still be close to breakeven. Of equal importance, we believe that we have now attracted enough outside financial support that we can pursue our goals of becoming cash-flow positive and increasing profit margins as we progress through the year."

Since it was released last month, High Heat Major League Baseball 2004 has proved popular both in terms of rentals and sales, according to 3DO. 3DO is hoping to replicate this success with upcoming games such as Four Horsemen of the Apocalypse, Street Racing Syndicate, and Army Men: Sarge's War.