SCi revs up almost $50m

Eidos' parent company reports on next financial year's plans; sequel to Battlestations: Midway en route, PS3 titles waiting for installed base.

More battleship sinking is on the way, according to the latest financial report from SCi Entertainment, parent company of Eidos Interactive. The real-time strategy game set during World War II was released on the Xbox 360 and the PC in February this year and entered the UK all-formats chart at number one. CEO Jane Cavanagh confirmed, "We are continuing to build this franchise and have a sequel in development."

Other titles currently in development from the company include Kane & Lynch: Dead Men, Crossfire: Search and Destroy, and Highlander. The company is scheduling 11 new published products for the financial year 2007, along with its first casual game releases. These casual titles include Diner Dash, Cubis 2, and Jewel Quest. Licensing deals with Warner Bros. have also been entered into, including games based on Batman, Looney Tunes, and the Hanna-Barbera catalogue.

Cavanagh believes that all three next-gen platforms are going to be successful, although the company is holding off timewise on releasing games for the PlayStation 3. Cavanagh explained, "As we do not believe that the installed base will be high enough until the second half of our 2008 financial year, most of our major product releases on the PlayStation 3 platform are not scheduled for release before that date." The company has already released "a number of" products for the 360, and its first Wii title will arrive in "spring 2007."

The company also reported its financial results, with revenue up £24.4 million ($47.9 million) to £74.5 million ($146.3 million) in the sixth months to December 31, 2006, as compared to the same period in 2005. Operation losses were also down £2 million ($3.9 million), from £19.9 million ($39 million) in the last period to £17.9 million ($35.1 million) in the second half of 2006.

The company also confirmed its acquisition of Bluefish Media, an online distribution company, earlier this week.

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Discussion

78 comments
snipe2004
snipe2004

with Canvanagh withholding their games for a larger installed base tells me that he is not confident about his games.

Unstoppable_1
Unstoppable_1

Great I am very happy for this company! Hopefully Deus Ex 3 is in the works! Thief 4 as well! They can rebound I know it! make sure you buy them people!

cjcr_alexandru
cjcr_alexandru

I think that installed base comes first. You've got to have an installed base if you want your games to sell well.

Atomic_Mutant
Atomic_Mutant

Here's a question: Which comes first? Installed base? Or games?

just_an_opinion
just_an_opinion

@ leo4578 --------------- hey man, thanks for the link. it was actually a very good article i never thought of it in that way. my bad about getting the ps3 attach ratio wrong.

GtheMVP
GtheMVP

Nice! I hope the next Battle Stations game is in Europe, with land vehicles, and soldiers too.

FallenOneX
FallenOneX

Sure, the game sucks, that why they won't release it..... They aren't the only ones that either held back or are holding back games for the PS3. You have to remember, there isn't one game that has sold on a 1 to 1 ratio with systems available, unless it was a pack-in. Halo, great game, but I know of Xbox/360 owners that never bought it. Same thing with Mario and the N64.

thedreadedfist
thedreadedfist

Xbox360 is most popular in North America. Sony's Playstation name is #1 in the rest of the world. In time I believe the PS3 will come out on top. When all the new Ratchet & Clank, Jak & Daxter, Metal Gear ( I think this will be a PS3 exclusive), etc. comes out a lot more people will buy the system. After 6 years you can still buy games for the PS2. The Xbox now is dead and buried. In another couple of years the same thing may happen to the 360. I appreciate Sony's support for their customers.

Kravyn81
Kravyn81

As far as holding off on the PS3 titles that makes sense. They might as well since the user base isn't that big right now, so basically it would be a waste of manpower and resources.

just_an_opinion
just_an_opinion

@ BILLNYE6983 -------------------- yo are tottaly right my friend, the diffrence in the hardware isn't really all that big except japan, i think the ds there is almost a holy thing. but anyway its the games sales that count. its the game sales that make devs do more games for that prticular console. ds games are always in the charts practically in every major region, the psp games are hardly ever in any charts. i do think the psp is a very nice if a bit expensive bit of hardware but just like the ps3 sony tried to do too much. many people don't even buy games on their psp they either download them or just use it for music and films(downloads not umd). i think same will happen to the ps3, too many people will buy simply because its shiny, its sony and it plays blue ray but in the long run i doubt many people will buy many games on it. i might well be wrong, we will see. you can actually already see this trend, when the 360 launched it had an attach ratio of ~ 4 or something like that. the ps3 barely had an attach ration of ~1.5. now the 360 attach ratio is way over 5 while the ps3 one is still around 1.5

comthitnuong
comthitnuong

Hopefully this boost in money will gives us more stuff like Midway

lanista
lanista

"I own a PS3, and I'll think twice about purchasing an Eidos game when they do come out...if they aren't willing to put forth the money in the beginning of the system, I'm not helping them out later." As an Xbox owner, I felt the same way about Capcom not releasing PS2 games to the Xbox Now times have changed... At the end of the day, the companies have to make money to offer us - the gamers - more choice (sure they make a profit too, but doesn't everybody, it's not a charity) Me? I'll not cut off my nose to spite my face, so I will be up for buying Capcom games on the Xbox 360 As underdog, MS fought their way through this problem last time around, so why not Sony too in this generation?

milnet
milnet

I am definitely getting a PS3 when I have the money. Saving up. Unfortunately I am in the PAL region so the price I am paying is almost double what the US is paying but that won't stop me. I already own a 360 and will also get the Wii when more mature games come out for it. I admire Nintendo's strategy in aiming for the mass market but what about gamers.

devilman539
devilman539

Sony is canabalizing their profits by selling their system for too high a price point. Game developers are going to continue to pass on development for it until they move more units. It doesn't make any sense dumping millions to develop for a console that hasn't sold well. Xbox 360 has a larger install base as it stands and lots of sony people are starting to switch to M.S because it has alot more games, heck I bought a 360 for the same reason and you know what? Im glad I did cause my ps3 is colllecting dust while my 360 get all the game time because it has more games available. If this trend continues, sony is going to have to abandon the ps3. My suggestion for sony? Drop the price and they will come...

BILLNYE6983
BILLNYE6983

"All those people waiting for their favorite series to be released to give them a reason to buy a PS3" Not sure about that, I know a lot of people who are going to buy a PS3 when they have the money, you see I don't know anyone who plays games but doesn't really read up on them (like in magazines or websites) that think the PS3 is lame. In the last month three close friends have gotten PS3's. My guess is it's like the PSP, sales were slow for a bit then everyone started having enough money to buy one (my two cousins each bough PSP's within a week of each other like 6 months ago). And don't anyone say, "nobody has a PSP", that is just crap the PSP has only sold like 9 million less than both DS' combined it's like 26PSP-35million, and when you consider that it's Sony's first handheld (and that every kid under 12 buys a DS) it's really not a big difference, especially in the US where is DS outsells the PSP by less than 1 million units...

Latinbro1
Latinbro1

Eiods is not a strong compnay. It had its run w/ Tomb Raider, Fear Effect (which didn't go that big), that FPS which name I can't remember, and w/ Soul River (I think) I don't think the company can take a chance to develop for an expensive platform with a small installed base for now and risk not having the product sell well. it's all about profits.

Poppa_pain
Poppa_pain

It makes sense why Eidos isnt coming straight out the gates with PS# games. Mulitplatform doesn't always mean more money. If the cost of porting a game to another system outwieghs the projected return (based on install base, popularity) The it doesnt make sense to port a game to another system becuause you would be losing money.

HardCor1981
HardCor1981

I wonder how much it costs these companies to take a game and apply it to multiple platforms. Surely, if a company is making a game anyway for at least 360 or ps3, they could make a stronger profit by releasing on the other unit. It seems most all companies are doing this...why is eidos different? afraid of a little extra work? I own a PS3, and I'll think twice about purchasing an Eidos game when they do come out...if they aren't willing to put forth the money in the beginning of the system, I'm not helping them out later.

HardCor1981
HardCor1981

[This message was deleted at the request of the original poster]

LosDaddie
LosDaddie

Smart move by withholding games for the PS3.

BigDaveyDogz
BigDaveyDogz

sucks for PS3...I'm really starting to feel for them. They need to get their head outta their ass and sell some units!

xspawn69
xspawn69

Actually it make's perfect sense to wait until there is an installed base of owners before you spend millions of dollars developing a game. If I were to develop a game for any system, I'd choose to develop that game for the sysyem owned by the most people. It just makes business sense.

monco59
monco59

"XBOX sucks" Wow, lucas029, your insight blows my mind. Just how does this relate to the story? Or are you just feeling threatened by the 360's clearly superior showing in regards to sales and software? I swear, Sony fanboys are getting dumber by the minute...

GoddBless
GoddBless

"visionary Yeah that's smart, instead of encouraging a greater installed base for a console, you'll just sit around and see if it grows without offering any help whatsoever. Weird logic " I think Microsoft planned on that logic. The way things are going now with Microsoft taking Sony exclusives will only stagnate the growth of Sony's install base even more. All those people waiting for their favorite series to be released to give them a reason to buy a PS3 will be enticed to get a 360. A lot of people didn't buy an Xbox last time because it didn't have as wide a variety of games as the PS2. Now the roles are reversed and what makes it worse is Sony states they don't believe in paying developers for exclusivity. They think the brand name is strong enough for their loyalty. Most people were loyal because Sony delivered before. If they don't deliver now then they shouldn't expect that loyalty.

gemineyez420
gemineyez420

trust me eidos isnt helping grow any user bases..

henry4th
henry4th

hmm.. Resistance just sold over a million, and not many games do sell that many copies. The fact that there aren't a whole lot of great games on ps3 might be the chance for Eidos to develop a decent game on ps3 and still sell well. But since they chose to wait, by the time install base goes up, great games come out, and certainly by second half of 2008, nobody gonna care what games Eidos cooks up for ps3 anymore.

souljacker47
souljacker47

"Cavanagh believes that all three next-gen platforms are going to be successful, although the company is holding off time-wise on releasing games for the PlayStation 3. Cavanagh explained, "As we do not believe that the installed base will be high enough until the second half of our 2008 financial year, most of our major product releases on the PlayStation 3 platform are not scheduled for release before that date." If more companies take this stance, PS3 will die before the year is out. Sony needs to convince companies like this to release the games earlier. Although I definitely understand the business part of it.

visionary
visionary

You have two options as a developer, you either take a risk and help a system thrive like other portions of UBISOFT did during the first 6 months of the 360's life span, or you wait till other developers take the glory and suddenly step in to make your own profits when the system is doing well. It all depends on which side you agree with but I personally hate this business tactic despite its effectiveness. It's very leech like in its nature and doesn't always help the industry.

mylsd
mylsd

so the PS3 is the new Gamecube, whoda thunk it

Sonovius
Sonovius

malmeid2 Let's not forget that Sony took too long to release PS3 vs their main competition, Xbox 360 (Wii is targeted at young children and very casual gamers). Let's not also forget that the PS3 has been scolded for being powerful, but locking up that power behind a quirky, unorthodox, and generally tedious platform in which to create games for. It is a small base because of lack of games but you have to look at the many reasons why there aren't a whole multitude of games progressing towards the PS3. Well Sony needs to develop an A+ game like Nintendo did with Zelda and M$ did with Gears and will hopefully do with the next Halo. I dont much on the horizon made by Sony honestly.

Pedro7_2000
Pedro7_2000

The numbers continue to tell the tale.

RMGreen
RMGreen

Developers don't 'need' to take risks on the PS3. Waiting for an installed base is NOT 'silly', it's a reasonable business decision. It's not Edios' job to increase the installed base of the PS3. That's Sony's job. All Eidos' is concerned with maximizing their profit and minimizing their expenses. If they have determined that it's not yet profitable to spend the money making PS3 versions of their games, then there's no reason for them to do so.

Maquis_UK
Maquis_UK

ooh burn. ``wait another year`` ... it's becoming a mantra. malmeid2: ''Wii is for young gamers and casuals'' ...well aint that typical m$ propaganda, it is a shame people believe the spin. I'm in my 30s, a gamer for years and adore Wii. I'm posting using it right now. can your oh-so-powerful directX box do that? further, casuals contribute to many of gamings standards (annual FIFA, Spyro games, GTA, popularity of ps2) its easy to dismiss any consoles userbase.... 360 for yee-haw rednecks, PC for the socially inept, ps3 just for fanboys. It's not always so.

AngelCage
AngelCage

i will like to know how the 360 sales was increased whe Gears of War was been released. My point is: GREAT GAMES make new systems to sell like beer. Sit around (for a developer) and wait for a wide user base installed in a system and THEN release some games is silly. If (and only IF) MGS4 stays exclusive, and if the game is great as it looks to be, the PS3 sales will jump to the stars. How many 360 systems was been installed before GOW release and AFTER it.????

caybeirwouleyfe
caybeirwouleyfe

What Wii Title? Oh and I agree with Big_Boss11where is The Legacy Of Kane??! (maybe it's one of the knew PS3, or Wii projects ?)

Odion666
Odion666

I am hoping for a clean division of the market for all three platforms, while i own a 360 and I am as MS fanboy, truthfully if the market was 150 million people i'd like to see 50 million for all 3 companies.

skyman_1981
skyman_1981

Highly Toxic, very well put. developers need to take risks on ps3 but more importantly, fony needs to develop a better business model then maybe it will entice more developers.

mrbass208
mrbass208

If and when Sony's PS3 base does reach a critical mass, there will be a massive influx of ports and new titles. Whether that will be enough to supplant the 360 is debatable, but like the prvious generation, the gap will be narrowed, but certainly not eliminated.

malmeid2
malmeid2

HighlyToxic Catch 22: Studios won't make games for the PS3 because of the small installed base; but the console has a small installed base because it has no games. ------------------------------------------------------------------------------------ Let's not forget that Sony took too long to release PS3 vs their main competition, Xbox 360 (Wii is targeted at young children and very casual gamers). Let's not also forget that the PS3 has been scolded for being powerful, but locking up that power behind a quirky, unorthodox, and generally tedious platform in which to create games for. It is a small base because of lack of games but you have to look at the many reasons why there aren't a whole multitude of games progressing towards the PS3.

zsc4
zsc4

Interesting, I wonder what the future holds :?

Yuck_Too
Yuck_Too

--sascha23-- Point is why spend money on one platform when you can spend the same money and make more in return from another. Business is simply that, and the same advantage the PS2 has.

HighlyToxic
HighlyToxic

Catch 22: Studios won't make games for the PS3 because of the small installed base; but the console has a small installed base because it has no games.

daleyboy928
daleyboy928

360 is killin PS3 right now, but it still has a chance. It's obviously not going as good as Kutaragi and Sony had hoped, but w/ Blu-Ray and Cell, in the middle of its life cycle is when things will probably start turning around for the better...

Big_Boss11
Big_Boss11

When is Eidos and Crystal Dynamics gonna make or finish (if they already started) the final Legacy of Kain game! I didn't see it on the list. Oh well.... guess I'll wait another year and see =(

sascha23
sascha23

That had to be the most idiotic comment I've read. Are they looking for 8+ million install base before making games like they did with 360? That's a weird logic if they're going to be multiplatform. I foresee Sony hitting that mark by Christmas. But I still don't really find Eidos' game library very interesting (except Deus Ex series).