Mindscape Denies Problems, Shows Proof

Is Mindscape a sinking ship? Previously reported rumors of Mindscape's financial and product woes seem to be, at the very least, partially incorrect.

Specifically the problems were reported in SSI, a Mindscape property, where layoffs and product cancellations were supposedly rampant. It is already known that Mindscape had closed down its sports line of games.

Mindscape is in the process of consolidating SSI, along with everything else it has in the US, with its main corporate offices in Novato, California, though no layoffs have been announced. Separately SSI has stated that two projects have been cancelled - Ancient Conquests and Mage's Legacy - which resulted in the layoffs of a few employees. Development on some titles is being put on hold until the move is complete.

As for financial matters, Mindscape also announced that it had achieved "record" sales in 1997, up 70 percent from 1996 - higher than what it had even thought it would be (which was 60 percent). Revenues for 1997 are expected to reach about US$136 million.

CEO John Moore stated that "1997 was a resounding success.... Our new products received numerous awards for their excellent quality, they were launched on time with strong marketing support, and they are still selling through at retail, even after the holiday season. We fully expect Mindscape's momentum to continue throughout 1998, based on the strength of our existing titles and the new product releases we have planned."

Mindscape owes a large portion of its 1997 success story to the release of Panzer General II, Creatures, Dogz, Catz, the Chessmaster titles, the Complete National Geographic collection, LEGO Island, and the PrintMaster titles.